Section 45 of TPA : Section 45: Joint Transfer For Consideration

Explanation using Example

Imagine three friends, Aarav, Bella, and Charlie, decide to buy a vacation home together. The property costs $300,000. They use a joint account, to which all three have been contributing equally for this specific purpose, to pay for the home. According to Section 45 of the Transfer of Property Act, 1882, since they paid from a common fund and there's no contract stating otherwise, Aarav, Bella, and Charlie will each hold an equal one-third interest in the property.

Now, consider a different scenario where Aarav contributes $150,000, Bella contributes $100,000, and Charlie contributes $50,000 from their separate funds to purchase the same vacation home. In this case, unless they have an agreement that states a different arrangement, Aarav would own a 50% interest in the property, Bella would own a 33.33% interest, and Charlie would own a 16.67% interest, reflecting the proportion of the purchase price each contributed.

If there is no clear evidence of the exact amounts contributed or the interests in the fund, it will be presumed that Aarav, Bella, and Charlie are equally entitled to the property.