Section 1 of Transfer of Property Act

Short title.— This Act may be called the Transfer of Property Act, 1882.

Commencement.— It shall come into force on the first day of July, 1882.
Extent.— It extends in the first instance to the whole of India. except the territories which, immediately before the 1st November, 1956, were comprised in Part B States or in the States of, Bombay, Punjab and Delhi.

But this Act or any part thereof may by 5 notification in the Official Gazette be extended to the whole or any part of the said territories by the State Government concerned.

And any State Government may from time to time, by notification in the Official Gazette, exempt, either retrospectively or prospectively, any part of the territories administered by such State Government from all or any of the following provisions, namely:—

Sections 54, paragraphs 2 and 3, 59, 107 and 123.

Notwithstanding anything in the foregoing part of this section, sections 54, paragraphs 2 and 3, 59, 107 and 123 shall not extend or be extended to any district or tract of country for the time being excluded from the operation of the Indian Registration Act, 1908 (16 of 1908), under the power conferred by the first section of that Act or otherwise.

Short Title, Commencement and Extent

Short Title

This law is called the Transfer of Property Act, 1882.

Commencement

This Act came into force on 1st July, 1882.

Example:

• If land was sold on 20 June 1882, this Act does not apply.
• If land was sold on 10 July 1882, this Act applies.

Extent (Where the Act Applied at First)

At first, this Act applied to the whole of India, except those areas which, before 1st November 1956, were part of:

• Part B States, or
• The States of Bombay, Punjab and Delhi.

Why were these areas excluded?

Because:

• These areas had their own local laws for land and property
• The British Government did not apply this Act there immediately
• Later, State Governments were given power to apply it when suitable

Part B States were former princely (Kings) States which joined India after independence and, before 1 November 1956, the Transfer of Property Act did not automatically apply to them.

Example:
In the year 1900:

• A land sale in Madras → Act applied
• A land sale in Bombay → Act did not apply

Extension by State Government

The State Government may, by publishing a notification in the Official Gazette, extend this Act or any part of it to the above excluded areas.

Example:
The Punjab Government issues a Gazette notification saying:
“Transfer of Property Act, 1882 will now apply to Punjab.”

From that date onward, all property transfers in Punjab must follow this Act.

Power of State Government to Give Exemptions

A State Government may also exempt (remove) the application of some sections of this Act in certain areas, either:

• Retrospectively (from a past date), or
• Prospectively (from a future date)

The sections that may be exempted are:

• Section 54 (paragraphs 2 and 3) – Sale of immovable property
• Section 59 – Mortgage
• Section 107 – Lease
• Section 123 – Gift

Example:
A State Government decides that in a tribal area, formal registration is difficult.
So it issues a notification saying:
“Sections 54 and 123 will not apply in this area.”

This means:

• Sale and gift rules under these sections are not compulsory there.

Retrospective and Prospective Exemption – Examples

Retrospective exemption (past):
In 2024, a State says:
“Section 107 will not apply from 2020.”

Leases made between 2020 and 2024 are also affected.

Prospective exemption (future):
The State says:
“Section 59 will not apply from 1 January 2026.”

Only mortgages made after that date are affected.

Relation with Indian Registration Act, 1908

Even if the Act applies to an area, Sections 54 (paragraphs 2 and 3), 59, 107 and 123 will not apply to any district where the Indian Registration Act, 1908 does not apply.

Example:
In a remote or tribal area:

• Registration of documents is not compulsory under the Registration Act.

So:

• Rules requiring registration for sale, mortgage, lease or gift under the Transfer of Property Act will not apply there.

Simple Overall Example

Ramesh gifts land to Suresh in a village where the Indian Registration Act does not apply.

Even if the Transfer of Property Act applies to that State:

• Section 123 (Gift) will not apply
• Registration of the gift deed is not compulsory