The Supreme Court’s decision, delivered in a case involving a property dispute, has clarified the legal process for transferring ownership of immovable property. The Court observed that a sale agreement or a general power of attorney only establishes an agreement to sell or a mandate to act on behalf of the property owner, respectively. These documents do not, in themselves, convey ownership rights.
The Court emphasized the importance of adhering to the provisions of the Transfer of Property Act, 1882, which mandates the execution of a registered deed of conveyance for the transfer of title to immovable property valued over Rs. 100. This requirement ensures transparency and safeguards the interests of both parties involved in the transaction.
The Supreme Court’s ruling has significant implications for property transactions in India. It will prevent individuals from relying solely on sale agreements or general powers of attorney to transfer ownership of immovable property. This decision will also encourage the adoption of formal legal processes to ensure the validity and enforceability of property transfers.