Section 54 of TPA : Section 54: ?Sale? Defined

Explanation using Example

Imagine John wants to buy a house from Mary that is worth $200,000. According to Section 54 of the Transfer of Property Act, 1882, they must create a registered instrument, such as a sale deed, which officially records the transaction. This deed must be signed by both parties and registered with the appropriate government authority to legally transfer the ownership from Mary to John.

If, however, John were buying a small piece of land from Mary worth only $80, in this case, they could transfer ownership either through a registered instrument or simply by Mary handing over possession of the land to John, as the value is less than one hundred rupees.

Before the actual sale, John and Mary may sign a contract for sale that outlines the terms of the upcoming transaction, such as the price and the date of the full payment and transfer. This contract does not give John any legal interest in the property until the sale is completed with a registered document.

In Assam, a special amendment requires that the registered instrument must be specifically registered in the State of Assam, even if the India Registration Act, 1908 suggests otherwise.