Tuesday 23 September 2014

EXCHANGE OF YOUR PROPERTY

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

There are numerous modes for transfer of property like sale, gift, and mortgage; equally one among the modes is exchange of properties, that may be a species of transfer of property akin to the barter system that use to be a typical mode of completing day to day industrial transactions.

In barter system movable and immovable properties are changed supported the wants of each the transacting individual. as an example a cow was exchange for food grains, spices was listed for gold then on then forth.


Section 118 of Transfer of Property Act deals with Exchange, that is outlined as a group action wherever 2 persons reciprocally transfer the possession of 1 factor, for the possession of another. The definition encompasses the exchange of each movable and unmovable and also the solely condition being that one among the 2 properties to be changed mustn't be for cash.

To simply outline, it's a mutual grant of equal interest, the one in thought of the opposite.  Exchange is totally different from sale. Section fifty four of the of property deals with sale, that is outlined as transfer of possession in exchange for a worth paid, half paid or half secure.The word “price” is outlined in sale of products act as cash thought.As for as exchange; the money can't be transferred, for the other property.so the characteristic issue is that the mode of payment of thought, i.e., cash within the case of sale wherever as just in case of exchange, it's paid in a similar way. Out concern at this time is exchange of 1 unmovable property with another unmovable property.  If the values of each properties don't seem to be equal, then the distinction within the price needs to be paid by cash.

Section 119 of the Transfer of property provides for remedy for defective titles of the properties in exchange. As an example A and B exchange properties presently ‘A’ finds that the title of the property received from B is flawed. The ‘B’ is absolute to observe the loss suffered by ‘A’, notwithstanding ‘A’ therefore wishes to come back the property received from ‘A’ canceling the exchange group action. This liability extends to the legal heirs of B and conjointly to the transferees, World Health Organization have received the property changed while not financial thought like Gift.However, the liability doesn't bind the bonafide customer.The procedure is comparable thereto of sale, wherever 1st an agreement of exchange is drawn.Section one hundred twenty of the Transfer of property provides that every party to the deal has rights and liabilities as that of marketer on what he provide which of customer on what he takes. so the rights and liabilities of the vendor and customer as dealt in section fifty four and fifty five of transfer of property act can apply subject to the terms of agreement of exchange.

The group action is complete solely, once mutual delivery of possession of individual properties is completed as proven by deed of exchange. Once a celebration to an exchange has not been place in possession of the property, that he's entitled; then he's entitled for a come back of the property transferred by him provided the property remains in possession of the opposite party or his legal representatives or a transferee inconsiderately.

Registration of Exchange Deed is obligatory and also the tax and registration changes are as per the individual State laws.In state exchange of property attracts tax as that of conveyance supported the market price of the property with the larger value amongst the 2 properties, that are the topic matter of exchange.


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