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Wednesday, February 19, 2014

TRANSFER OF PROPERTY - USE OF IMMOVABLE PROPERTY - RESTRICTIONS WHEN VOID

USE OF IMMOVABLE PROPERTY - RESTRICTIONS WHEN VOID


Absolute Right- 
According to Section 11 of the Transfer of property Act, 1882, where on a transfer of property, an interest therein is created absolutely in favour of any person, but the terms of the transfer has a rider clause that such interest shall be enjoyed by the transferee in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction. Further, Sec 11 stipulates that there can be no restriction on the enjoyment of property which has been transferred absolutely. Similarly, the vendee of an immovable property is entitled to ignore the condition which cuts down enjoyment of his absolute right over the property. In cases, where the property has passed absolutely to the Purchaser, any direction contained in the sale deed contrary to the absolute enjoyment is void and is not enforceable.
Exception:
But, there is an exception to this principle. The same section 11 provides that if any restrictions are imposed on a portion of an immovable property for purposes of securing the beneficial enjoyment of another portion of the same property, then the restrictions imposed shall be construed to be valid. This kind of situation arises mostly in cases where a portion of the property is transferred and another portion is retained by the Owner, the Owner may put some reasonable restrictions on the use of the property sold for the beneficial use of portion of property retained by him. However, such restrictions are not binding on third parties who are not a party to the contract.

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