Property Rules: Legal concepts related to property are often difficult for the common people to understand. Especially when it comes to movable and immovable property, many people are confused. Therefore, it is very important to be aware of the legal procedures while buying or transferring property.
Legal concepts related to property are often difficult for the common people to understand. Especially when it comes to movable and immovable property, there is confusion in the minds of many. Therefore, it is very important to be aware of the legal procedures while buying or transferring property.
Nature of assets and their importance
Before buying a house, land or any other property, it is important to know what type it is. Most people invest their entire life’s income in property. Therefore, if you do not have proper information about it, you may face major problems.
What are the two types of property?
Property that cannot be moved is known as immovable property. It includes houses, buildings, agricultural land, factories, and other fixed assets. This property remains in one place and requires specific legal procedures to be followed in order to transfer it.
Examples – House, housing projects, factories, commercial buildings
Agricultural lands
Movable property
Property that can be moved from one place to another is called movable property. This includes everyday items, equipment, vehicles, jewelry. Examples – Jewelry, vehicles, electronic devices, household items
How is the division and partition done?
While immovable property has to be divided according to legal procedures, movable property can be divided easily. Also, immovable property cannot be transferred without a will or gift deed, movable property can be easily given to anyone.
Land plants and legal concepts
Most people think that trees, grass or plants are part of immovable property. However, according to the Income Tax Act, anything growing on land is not considered immovable property if it is sold and taxed.
Meanwhile, understanding the nature of property and the laws related to it can help avoid problems in property transactions. Immovable property remains permanently in one place and requires a legal process to transfer it. On the other hand, movable property can be easily moved and there is not much difficulty in buying and selling it.