Modes of transfer of property Section 5 of the Act defines “Transfer of Property” as “In the following sections ‘transfer of property’ means an act by which a living person conveys property in present or in future, to one or more other living person, or to himself, and one or more other living persons, and “to transfer property” is to perform such act. In this section “Living Person” includes “a company or association or body of individuals whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.” The word “property” has not been defined in the Act, but it has a very wide meaning and includes properties of all descriptions. It includes movable properties such as case, books, etc., and includes immovable properties also such as lands or houses. It also includes intangible properties such as ownership, tenancy, copyrights, etc. The word ‘transfer’ has also very wide meaning. It may be either transfer of all the right and interests in the property or transfer of one or more of subordinate right in the property. The transfer of property may be made to take place with immediate effect or to take place on a future date; however the property must be in existence at the date of transfer. There can be no transfer of future property. The expression ‘in present or in future’ governs the word ‘conveys’ and not the word ‘property’, e.g., A transfers his property to B for life and then to C. The transfer in favor of B is present (although he gets only life interest) but the transfer in favor of C is future transfer. The transfer of property as defined under Section 5, is an act between two living persons. Thus the conveyance of the property must be from one living person to another living person. However transferee need not be a competent person like transferor. A transferee may be a minor, insane or child in mother’s womb. The word “living person” includes corporations and other association of person. A transfer can be made by a person to himself, as for instance when a person vests property in trust and himself becomes the whole trustee.

1. 4/10/2018
Modes of Transfer of Property
Transfer of Property Law
Name: - IHSAN ULLAH
Roll No. : - 11
LL.B.:- 5years
Semester: - 5th
Assignment on: - Modes of Transfer of Property
Subject: - Transfer of Property Law
Submitted To: - Sir Umar Latif

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Table of Contents
TRANSFER OF PROPERTY – MEANING AND TYPES ............................................2
KINDS OF TRANSFER .........................................................................................................2
Transfer of Property Act, 1882 not amounting to Transfer of Property .........................3
WHAT MAY BE TRANSFERRED......................................................................................3
PERSONS COMPETENT TO TRANSFER .....................................................................5
OPERATION OF TRANSFER.............................................................................................5
Transfer by Persons before they acquire the Interest .........................................................6
i. CHANCE OF AN HEIR APPARENT ..........................................................................6
ii. CHANCE OF LEGACY.....................................................................................................6
iii. OTHER POSSIBILITIES OF LIKE NATURE...................................................6
Transfer by Unauthorized Person (Doctrine of feeding empty grant by estoppel) ........ 7
SECTION 6(A) AND SECTION 43 COMPARED .......................................................... 7
Transferability of Immovable property...................................................................................8
There are six elements, which make a property transferable. ............................................8
Sale-................................................................................................................................................9
ESSENTIAL ELEMENTS OF SALE ...............................................................................10
MODE OF TRANSFER BY SALE.....................................................................................10
EXCHANGE .............................................................................................................................10
Mortgage-....................................................................................................................................10
Charge- ........................................................................................................................................ 11
Lease-........................................................................................................................................... 11
ESSENTIAL ELEMENTS OF LEASE............................................................................ 11
LICENCE..................................................................................................................................12
DISTINCTION BETWEEN LEASE AND LICENCE ................................................12
GIFT ...........................................................................................................................................13
ESSENTIAL ELEMENTS OF GIFT................................................................................13
Transfer can also take place through exchange, gifts and actionable claims.................13
Other ways-.................................................................................................................................13
Conclusion..................................................................................................................................14
References..................................................................................................................................14

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TRANSFER OF PROPERTY – MEANING AND TYPES
Section 5 of the Act defines “Transfer of Property” as “In the following sections ‘transfer of
property’ means an act by which a living person conveys property in present or in future, to one
or more other living person, or to himself, and one or more other living persons, and “to transfer
property” is to perform such act.
In this section “Living Person” includes “a company or association or body of individuals whether
incorporated or not, but nothing herein contained shall affect any law for the time being in force
relating to transfer of property to or by companies, associations or bodies of individuals.”
The word “property” has not been defined in the Act, but it has a very wide meaning and includes
properties of all descriptions. It includes movable properties such as case, books, etc., and includes
immovable properties also such as lands or houses. It also includes intangible properties such as
ownership, tenancy, copyrights, etc.
The word ‘transfer’ has also very wide meaning. It may be either transfer of all the right and
interests in the property or transfer of one or more of subordinate right in the property.
The transfer of property may be made to take place with immediate effect or to take place on a
future date; however the property must be in existence at the date of transfer. There can be no
transfer of future property. The expression ‘in present or in future’ governs the word ‘conveys’
and not the word ‘property’, e.g., A transfers his property to B for life and then to C. The transfer
in favor of B is present (although he gets only life interest) but the transfer in favor of C is future
transfer.
The transfer of property as defined under Section 5, is an act between two living persons. Thus the
conveyance of the property must be from one living person to another living person. However
transferee need not be a competent person like transferor. A transferee may be a minor, insane or
child in mother’s womb.
The word “living person” includes corporations and other association of person. A transfer can be
made by a person to himself, as for instance when a person vests property in trust and himself
becomes the whole trustee.
KINDS OF TRANSFER
The Act contemplates the following kinds of transfers: (1) Sale, (2) Mortgage, (3) Lease (4)
Exchange, and (5) Gift. Sale is an out-and-out transfer of property. In mortgage, there is a transfer
of limited interest in property. A lease is a transfer of a right to enjoy immovable property for a
certain time or in perpetuity. Exchange is like a sale, but differs from it as regards the consideration.
In sale, the consideration is money, while in exchange, the consideration is another thing. In a gift,
there is no consideration.

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Transfer of Property Act, 1882 not amounting to Transfer of Property
As the transfer of property’ means ‘conveying of property’, i.e., creation of new title or interest in
the favor of the transferee, if new title or interest has not created in favor of transferee , the property
cannot be said to be conveyed, thus no transfer of property.
Partition- As nothing new is obtained by a co-sharer on partition, it is not a transfer of property.
His specific share, which vested in him earlier, is simply separated.
– The only right created in a charge is a right to payment out of the property subjected to charge,
thus it is not a transfer. Relinquishment:—it is an extinction of a right and therefore, there is
nothing left to transfer. Thus a relinquishment by a reversionary of his reversionary interest does
not amount to transfer But if the person in whose favor the ‘release’ is executed, gets certain
rights by virtue of such release, the transaction may amount to a transfer
Surrender.—it is not a transfer as it is the manager of a lesser estate with a greater one
Easement.—the creation of an easement does not amount to a transfer.
Will.—Because it operates from the death of the person making it, while the definition
contemplates a transfer by a living person, does not fall within the definition of transfer.
Compromise.—it may or may not amount to transfer. It depends on the facts and circumstances of
each case. It was held that where one of the parties to a settlement gives up a claim to receive a
certain sum of money from the other, in consideration of the latter’s given up the right to certain
property claimed by him, it would amount to a transfer.
Family arrangement/settlement. — A family settlement entered into by the parties for the purpose
of putting an end to the disputes among family members does not amount to transfer, not being an
alienation it does not amount to the creation of an interest.
WHAT MAY BE TRANSFERRED
Section 6—”Property of any kind may be transferred, except as otherwise provided by this Act, or
by any other law for the time being in force.”
This section enumerates different kinds of property which cannot be transferred (Exceptions to
Section 6)—-
 SPES SUCCESSIONIS [SECTION 6(A)]—
“The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining a legacy
on the death of a kinsman, or any other mere possibility of a like nature, cannot be transferred.”
A mere possibility/chance/expectancy of an, heir succeeding to an estate is excluded from the
category of transferable property, e.g., A Hindu, dies leaving a widow B and On two C. C has only
a spes successionis, as his succession to the estate is dependent on 2 factors, i.e., his surviving the
widow B, and B leaving the property intact.
 RIGHT OF RE-ENTRY. [SECTION 6(B)]

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“A mere right of a re-entry for breach of a condition subsequent cannot be transferred to anyone
except the owner of the property affected thereby.
By a Mere given to right of re-entry meant a right to resume possession of-land which has been
given to another person for a certain time. It is usually inserted in lease empowering the lessor to
re-enter up a breach of covenants in the lease.
a) A grants a lease of a plot of land for 5 years to B with the condition that B shall not dig a
tank on the land. B digs the tank. A relates to transfer C the right of re-entry for the breach
of the condition committed by B. The transfer is invalid.
b) A grants a lease of plot for 5 years to B. Subsequently A transfers his right of re-entry at
the expiry of 5 years to C. The transfer is valid as at the expiry of lease the right of reentry
is transferred along with the land to .
 EASEMENT [SECTION 6(C)]—
“An easement cannot be transferred apart from the dominant heritage.”
An easement B a right to use, or restrict the use of land of another in some way, for example, right
of way, right of water or light, etc. (Section 3 Easement Act). These right cannot be transferred
without the property which has the benefit of it.
 RESTRICTED INTEREST [SECTION 6(D)].—
”An interest in property restricted in its enjoyment to the owner personally cannot be transferred
by him”
E.g., if a house is lent to a man for his personal use, he cannot transfer his right of enjoyment to
another. Similarly a religious office like those of mutual of a wake or of meant of a math and
emoluments attached to priestly office cannot be transferred. ,
 MAINTENANCE [SECTION 6(DD)].—
”A right to future maintenance, in whatsoever manner arising secured or determined, cannot be
transferred.”
A right to future maintenance is only for the personal benefit of the person to whom it is granted,
thus it cannot be transferred.
 MERE RIGHT TO SUE [SECTION 6(E)] —
”A mere right to sue cannot be transferred.”
A right to sue is personal to the party aggrieved, as for, e.g., damages for the breach of contract or
for tort, claims for past manse profit for suing an agent for accounts, for pre-emption, etc. These
rights cannot be transferred. But where the right to sue has merged in a decree, the right under the
decree is assignable. Thus, a right to manse profit or damages under a decree is assignable.
 PUBLIC OFFICE [SECTION 6(F)].—

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”A public office cannot be transferred, nor can the salary of a public officer, whether before or
after it has become payable.”
Thus prohibition is based on the ground of public policy as the public office is held for qualities
personal to incumbent.
If the office is not public, it would be transferable, even though the discharge of its duties should
be indirectly beneficial to the public.
 PENSIONS [SECTION 6(G)—
"Stipends allowed to military, naval, air force and civil pensioners of the government and political
pensions cannot be transferred, pension means a periodical allowances or stipend granted not in
respect of any right of office but on account of part services of particular merits. Section 60 of
CPC also exempts a pension from attachment in execution of degree against the pension holder.
 NATURE OF INTERESTS [SECTION 6(N)]. —
”No transfer can be made (1) in so far as it opposed to the nature of the interest affected thereby,
or (2) for an in so far unlawful object or consideration within the meaning of Section 23 of the
Pakistan Contract Act, 1872, or (3) to a person legally disqualified to be a transferee. “
This clause forbids the transfer of certain things which from their very nature are not transferable,
e.g., res communes (things of which no one in particular is the owner and may be used by all men),
res nullius (things belonging to nobody).Res extra commercial (things thrown out of commerce)
Again, any property otherwise transferable becomes non-transferable when the object or the
consideration of the transfer is unlawful (within. the meaning of Section 23, Pakistan Contract
Act).
Lastly, a transfer cannot be made in favor of a person who is disqualified to be a transferee.
 UN-TRANSFERABLE INTERESTS [S[SECTION 6(I)]
Nothing in this section shall be deemed to authorize a tenant having an un transferable right of
occupancy, the farmer of an estate in respect of which default has been made in paying revenue,
on the lessee of an estate, under the management of a court of wards to assign his interest such as
such tenant farmer or lessee.”
PERSONS COMPETENT TO TRANSFER
Section 7 of the Act provides that, “Every person competent to contract and entitled to transferable
property, or authorized to dispose of transferable property not his own, is competent to transfer
such property, either wholly or in part and either absolutely or conditionally, in the circumstances,
to the extent and in the manner, allowed and prescribed by any law for the time being in force.”
OPERATION OF TRANSFER
Section 8 of the Transfer of Property Act provides transfer of different kinds of property and their
legal incidents. It provides, “Unless different intention is expressed or necessarily implied, a

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transfer of property passes for with the transferee all the interest which the transferor is then
capable of passing in the property and in the legal incident thereof.
Such incidents include where the property is land, the easement annexed thereto, the rent and
profits thereof accruing after the transfer and all things attached to the earth;
and, where the property is a house, the easements annexed thereto, the rent thereof accruing after
the transfer, and the locks, keys, bars, doors, windows and all the other things provided for
permanent use therewith; and, where the property is a debt or other actionable claim, the securities
therefor except where they are also for other debts or claims not transferred to the transferee, but
not arrears of interest accrued before the transfer; and where the property is money or other
property yielding income, the interest or income thereof accruing after the transfer takes effect.”
Transfer by Persons before they acquire the Interest
Section 6(a) of the Act provides certain things which are non-transferable (spes sucessionis). These
are as follows—
 The chance of an heir-apparent succeeding to an estate,
 The chance of a relation obtaining a legacy on the death of a kinsman,
 Any other mere possibility of a like nature.
i. CHANCE OF AN HEIR APPARENT
Both Hindu and Muslim law forbids transfer of the expectancy. A mere possibility or expectancy
of an heir succeeding to an estate is excluded from the category of transferable property. Thus a
Hindu reversionary has no right or interest. In presents in the property which the female owner
holds for her life, e.g.:
A dies leaving two widows and a reversionary heir B. The widow’s set-up a Will which authorized
them to adopt a son. B filed a suit challenging the validity of the Will and in order to raise money
for the litigation transferred his share to C. The court set-aside the Will. On the death of the widows
B entered possession of A’s estate. C sued B but C’s suit was dismissed as B, at the time of transfer,
had spes successionis in A’s estate and, therefore, could not transfer it.
ii. CHANCE OF LEGACY
The chance of a relation receiving a legacy is a possibility even more remote then the chance of
succession of an heir, and therefore, is not transferable.
iii. OTHER POSSIBILITIES OF LIKE NATURE
Such possibilities which belongs to the same category as the chance of an heir apparent or the
chance of a relation obtaining a legacy, e.g. the possibility of winning a lottery or a prize in a
certain competition cannot be transferred. A good illustration of this category is the ‘next cast in a
fisherman’s net’. No one can guarantee that any fish will be caught, and the fisherman himself has
no interest in the fish until they are caught in his net.

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Transfer by Unauthorized Person (Doctrine of feeding empty grant by estoppel)
A person who has no title or interest in an immovable property, cannot transfer that property.
Transfer by such person is a transfer by unauthorized person. Section 43 of the Ac provides the
effect when such unauthorized person subsequently acquires interest in property transferred.
Section 43. Transfer by unauthorized persons who subsequently acquires interest property
transferred-where a person fraudulently or erroneously represents that he is authorized to transfer
certain immovable property and professes to transfer such property for consideration such transfer
shall at the option of the transferee, operate on any interest which the transferor may acquire in
such property at any time during which the contract of transfer subsists.
Nothing in this section shall impair the right of transferees in good faith for consideration without
notice of the existence of the said option.
Illustration—A, a Hindu who has reported from his father B, sells to C three fields X, Y and Z
representing that A is authorized to transfer the same. Of these fields Z does not belong to A, it
having been retained by B on the partition, but on B’s dying A as heir obtains Z, C not having
rescinded the contract of sale, may require A to deliver Z to him.
The general rule of nemo dat quod non habet (no one can give to another, what he himself does
not have) has been relaxed through this section. The principle of this section is based partly on the
English doctrine of estoppel by deed and partly on the equitable doctrine that a person who has
promised more than he can perform must make good his promise when he acquires the power of
performance.
FOR APPLICATION OF THIS SECTION REQUISITES MUST BE SATISFIED—
There must be fraudulent or erroneous representation of ownership by the transferor.
Transfer must be by the wrong owner.
Transferee must act on that false representation, in good faith.
Transfer is for the consideration.
Transfer subsequently acquires some interest in that property which he professed to
transfer.
The contract of transfer still subsists.
Subsequently acquired interest does not pass automatically to transferee but only when he claims
the right in such property.
The exception to this section (Second paragraph of Section 43) protects the rights of the record
transferee in good faith and for consideration who has no notice of the option in favor of the first
transferee.
SECTION 6(A) AND SECTION 43 COMPARED
Section 6(a) and Section 43 seems to conflict each other. Where Section 6(a) deals with spes-
successionis and sender mere possibility/expectancy of an heir succeeding to an estate as an un-
transferable property, through Section 43, such transfer can be made effective if transferor
subsequently acquires those property and other conditions satisfied.

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Transferability of Immovable property
Transfer of a property can be made in two ways, firstly by act of parties and secondly by law.
Under act of parties, Transfer of Property Act (TOPA) exists, which gives us further divisions that
is whether the property is movable or immovable, transfer for movable property and immovable
property. In my research paper I am going to focus on immovable property. Immovable property
is divided into six parts- sale, mortgage, actionable claims, lease, exchange, and gifts, charge.
Transfer of property has been defined under section 5 of the transfer of property act. According to
the act immovable property does not include standing timber, growing crops, or grass.
Interpretation of the section also allows us to construe the fact that things that are attached to the
land and which cannot be detached from the earth and things which are permanently fixed to the
earth also come within the definition of immovable property. For example, timber, since it is of no
use until one takes it out of the land or detaches it, it is useless therefore it is movable property.
There are six elements, which make a property transferable.
The requirements to be met as per Section 5 are four in number.
TRANSFER MUST BE BY A LIVING OR JURISTIC PERSON.
A juristic person was defined that a juristic person can be an individual, firm, corporate company,
association, society, not including partnership firm. Any individual who can sue or be sued under
law would satisfy this requirement.
THE TRANSFER MUST BE THROUGH A CONVEYANCE.
Conveyance can be present or future. However conveyance can take place only if there is creation
of new title. Therefore, there should have been nothing with the transferee before the title. In
addition to this the term future is used to define the future interest in the property and not the future
property itself. Therefore, the word future property itself must be transferred. Therefore, the word
future is for the conveyance.
THIRDLY, THE PROPERTY ITSELF MUST BE TRANSFERRED.
FOURTHLY, IT MUST BE MADE TO ALIVING OR A JURISTIC PERSON.
Any kind immovable property can be transferred. Any kind of immovable property can be
transferred other than that which are given in section 6 of the TOPA. The right to re-entry,
easement can’t be transferred. Specific rights cannot be transferred, as there are only certain people
who should enjoy the right. The right to sue, public office, unlawful objects cannot be transferred.
The third element is competency as under section 7of TOPA. The individual must not be a minor
or an insane person. The person must have the title of property or the person must have the
authority to transfer; in part or in whole, if transfer is made ultra-virus to the authority vested in
the agent, the transfer will be void.

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The fourth element being that under section 6(h) (3) the person must not be a legally disqualified
transferee. For example under section 136 of TOPA judges, legal practitioners and officers
connected to the court are disqualified from purchasing actionable claims.
The fifth element being that a valid transfer can also happen under section 9 of TOPA as an oral
transfer.
Transfer of immovable property may happen only in certain ways. They can either be through sale,
mortgagee, lease, and gifts or through actionable claims. These are modes of transfer.
In Pakistan, transactions for purchasing/selling/transferring/creating an interest in property and
transmission of title in respect of a property are governed by several laws, rules and regulations
made by Central and State Governments.
Transfer of Property Act, 1882 (TP Act) is one of the primary laws on transfer of property
applicable to the whole of Pakistan. However, TP Act does not govern the transfer of property by
operation of law, such as the sale by the order of a court, auction or forfeiture as well as
transmission of the title of a person dying intestate, in which case succession laws as per the
religion of the deceased will be applicable.
According to Section 6 of the Transfer of Property Act, the property of any kind, except the nine
kinds of property mentioned therein, may be transferred. The person insisting non-transferability
must prove the existence of some law or custom which restricts the right of transfer. Unless there
is some legal restriction preventing the transfer, the owner of the property may transfer it.
Any person, who is competent to contract, is competent to transfer property, which can be
transferred in whole or in part. He should be entitled to the transferable property, or authorized to
dispose of transferable property which is not his own. The right may be either absolute or
conditional, and the property may be movable or immovable, present or future.
A transfer of property passes forthwith to the transferee all the interest which the transferor is then
capable of passing in the property unless a different intention is expressed or implied.
Here we will discuss the different types of transfers mentioned in the TP Act. In addition, we will
also look into License as provided under Sec. 52 of Pakistan Easement Act, 1882, which is many
times confused with lease and erroneously used.
Sale-
Contract of sale of immovable property is basically a contract, which states terms for the permanent
transfer of property. The sale takes place in accordance to the terms, which are settled by both the
parties in the contract itself. Such contract of sale does not create any interest in or charge on such
immovable property. A kind of obligation is created in respect of the ownership of the property.
Essentials of a contract of sale are several. The parties to the transfer or the vendor should be
competent enough to contract under Section 2 of the Pakistan Contract Act. Price is another
essential ingredient for all transactions of sale and in the absence of this price, which constitutes
consideration, the transfer will not be regarded as a contract of sale. Delivery of property is
necessary for a transfer by way of sale. In case of tangible property worth less than Rupees one

11. 10
hundred, the transfer can be made by a registered instrument or putting the purchaser in possession
of the property. If it is more than rupees one hundred then the instrument has to be registered under
Registration Act, 1908. There are certain rights and duties of the buyer and the seller, which are
subject to the contract. These rights and duties are governed under Section 55 of the Transfer
Property Act.
According to section 54 of the TP Act, Sale is a transfer of ownership in exchange for a price paid
or promised or part-paid and part-promised. In a sale, there is an absolute transfer of all rights in
the property sold.
ESSENTIAL ELEMENTS OF SALE
The essential elements of a sale are as follows:
 the parties ;
 the subject-matter ;
 The price or consideration.
MODE OF TRANSFER BY SALE
There are only two modes of transfer by sale, that is:
(i) by the registered instrument
(ii) Delivery of possession.
A transfer by sale of tangible immovable property of the value of one hundred rupees and upwards
can be made only by a registered instrument.
EXCHANGE
Section 118 of the TP Act provides that when two persons mutually transfer the ownership of one
thing for the ownership of another, neither thing nor both things being money only, the transaction
is called an Exchange. The definition of the word exchange is not limited to immovable property.
Exchange is not only exchange of lands but also barter of goods. A transaction of exchange
presupposes existence of different properties owned by different persons, that as a result of the
transaction of exchange both the properties continue to be owned by two different parties but the
ownership of one property is transferred to the owner of the other and vice versa.
Mortgage-
Transfer of immovable property can also take place through mortgage. Section 58(a) of the TOPA
says, a mortgage i the transfer of an interest in specific immovable property for the purpose of
securing the payment of money advanced or to be advanced by way of loan, an existing or future
deist, or the performance of an engagement which may give rise to a pecuniary liability.
Ingredients of mortgage; in a mortgage, the mortgagor transfers any one of his interests in specified
immovable property to the mortgagee. Money to be advanced by way of loan arises in the case of
a running account between the parties. Future debt is a contingent liability, which arises on the

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happening of some contingency. If the promise not competed an obligation to pay arises. These
may be a pecuniary liability.
An under taking be a person borrowing money not to alienate his property until the money is repaid
is not a mortgage, because there is no transfer of interest in property.
Section 58 of TP Act defines a mortgage as the transfer of an interest in a specific immovable
property for the purpose of securing the payment of money advanced or to be advanced by way of
loan, an existing or future debt or the performance of an engagement which may give rise to a
pecuniary liability. Thus, a mortgage is a transfer of an interest in specific immovable property as
security for the repayment of a debt.
In order to create a mortgage, it is necessary to specify the immovable property. The description
must at least be sufficient to identify the property according to the requirements of the Registration
Act.
The transferor is called mortgagor, the transferee a mortgagee; the principal money and interest of
which payment is secured for the time being are called the mortgage-money, and the instrument
(if any) by which the transfer is effected is called a mortgage-deed.
Charge-
Transfer of immovable property can also take place through charge. According to Section 100
when a person by the act of parties or operation of law creates a security for the payment of money
to another, and the transaction should not be a mortgagee, the latter is said to have a charge on the
property. Charge is created by operation of law, this distinguishes mortgage, which is created by
act of parties.
Lease-
Transfer of immovable property can also take place though lease. Section 105 defines lease.
According to it, lease of immovable property is a transfer of a right to enjoy such property, made
for a certain time, express or implied or in perpetuity in consideration of a price paid or promised,
or of money, share of crops, service or any other thing of value, to be rendered periodically or on
specified occasions to the transferor by the transferee, who accepts the transfer on such terms.
Section 105 of the TP Act lays down that a lease of immovable property is a transfer of a right to
enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration
of a price paid or promised, or of money, a share of crops, service or any other thing of value, to
be rendered periodically or on specified occasions to the transferor by the transferee, who accepts
the transfer on such terms. The transferor is called the lessor, the transferee, is called the lessee,
the price is called the premium, and the money, share, service or other thing to be so rendered is
called the rent.
ESSENTIAL ELEMENTS OF LEASE
The essential elements of a lease are the following:
 The parties, i.e., the lessor and lessee.

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 The subject-matter, or immovable property.
 The demise or partial transfer.
 The duration or term of the lease.
 The consideration for the lease, or rent.
LICENCE
Section 52 of the Pakistan Easements Act, 1882, defines the terms license as follows:
“Where one person grants to another, or to a definite number of other persons, a right to do, or
continue to do, in or upon the immovable property of the grantor, something which would, in the
absence of such right, be unlawful, and such right does not amount to an easement or as interest in
the property, the right is called a license”.
Thus, a license is a permission to stay on an immovable property without which the stay would be
a trespass.
DISTINCTION BETWEEN LEASE AND LICENCE
The Supreme Court has brought out distinction between a lease and a license in various cases
which may be summarized as follows:
The lease is an inheritable right which is available as a right against any person in the world (right
in rem): License is not an inheritable right. It is personal and exclusive to the licensee and on his
death, it automatically stands revoked.
The lease creates interest in the leased property in favor of the lessee whereas in license no such
interest is created in the licensee.
Lease interest can be assigned but the license is non-assignable.
Denial of lessor’s title results in forfeiture of the lease whereas it is not so in a license.
The remedy for breaches in the case of a lease is that the lease can be enforced but in the case of a
license the only suit for damage can be filed.
Termination of the lease requires notice to be served on the lessee but the termination of a license
can be done without notice.
Lease deed requires registration under the Registration Act, 1908 and Transfer of Property Act,
1882 if the value of the leased property exceeds Rs. 100/- or the lease duration exceeds eleven
months but a license deed does not require registration.
A lessee can sue stranger or third party in his own name but a licensee cannot do so.
Thus, where in terms of an agreement with respect to land and building for commercial purpose,
exclusive possession is not given and there is a covenant for delivery of vacant possession after
expiry of the term of the agreement, the agreement would be a license and not a lease. However,
exclusive possession itself is not decisive in favor of a lease and against a mere license and the

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question whether a transaction is a lease or a license “turns on the operative intention of the parties”
and there is no single, simple litmus test to distinguish one from the other.
GIFT
Section 122 of the TP Act defines Gift as the transfer of certain existing movable or immovable
property made voluntarily and without consideration by one person, called the donor, to another,
called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during
the lifetime of the donor and while he is still capable of giving. If the donee dies before acceptance,
the gift is void. A gift of immovable property to a minor is complete when it is accepted by a
person on behalf of the minor and appends his thumb impression on the gift-deed in token of
acceptance.
ESSENTIAL ELEMENTS OF GIFT
The following are the essential elements of a gift to be valid:
 No consideration –nothing to be received in lieu of a gift.
 The Donor-person making a gift.
 The Donee-person to whom a gift is made.
 The subject-matter of a gift.
 The transfer of the subject-matter of gift by the donor to the donee.
 The acceptance of the gift by the donee.
Transfer can also take place through exchange, gifts and actionable
claims.
Other ways-
Immovable property can also be transferred by way of law that is if there is insolvency, succession
or the absence of a will. In the situation of the absence of a will, the court shall declare the transfer
of property by way of interstate.
However, there are some things that cannot be transferred. Section 6 of the Transfer of Property
Act discusses the immovable properties, which cannot be transferred. Spec successions cannot be
transferred. According to section 6(a) it is void.
Charge cannot be transferred because it is a right, which is a part of property. Compromise cannot
be transferred. Easement cannot be transferred because these are the rights or interest arising of
land, which is a part of the property but cannot be transferred. Family arrangement may be
transferred. A will cannot be transferred because it does not operate by act of parties. Auction sale
cannot be transferred because property is in possession of another.
Are benefits arising out of land immovable? Yes, benefits like crops from your land, fish and the
lake and anything 12nm from the main land are immovable and can be transferred profit arising
out of land is immovable property. The right to walk on the land and to draw fish from the lake

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and taking it away is immovable property as it is the profit arising of the land. Grazing of cattle on
the land is also immovable property as it is profit arising of the land.
Conclusion
Therefore for a property to be transferable several conditions need to be satisfied. These include
that of constituting a transfer; it to come within the definition of an immoveable property and it
should not be amongst those items, which may not be transferred under Section 6 of the Transfer
of Property Act. In addition to this it is clear that there are several kinds of transfer that may take
place. Each kind of transfer as has been explained has different procedures and conditions, which
need to be satisfied. These are hence the various elements that are required to be transferred for a
property to be transferable.
References
https://maheshspeak.com/2016/02/05/different-types-of-transfer-of-property/
https://www.lawctopus.com/academike/transferability-immovable-property/
https://www.chsguru.com/2011/12/different-modes-of-transfer-of-property.html
https://medium.com/@shellykaundal/5-ways-to-transfer-property-in-Pakistan-aceef6b31a08
https://www.legalbites.in/transfer-property-meaning-types/