Oral Transfer
Introduction
Section 9 of the Transfer of Property Act, 1882 recognises that not all transfers require written documents.
It allows transfer of property by oral agreement (spoken agreement), except in cases where the law specifically requires writing and registration.
Meaning / Definition
Oral transfer means transfer of property without a written document.
As per Section 9:
- A transfer can be made orally in all cases where writing is not expressly required by law.
Modes or Types
General Rule
- Property can be transferred orally if:
- Law does not require writing
- There is valid delivery of possession (handing over control)
Cases Where Writing is Compulsory
Oral transfer is not valid in the following cases:
Sale of Tangible Immovable Property
- When value is more than ₹100
- Must be in writing and registered
Mortgage
- When loan amount is more than ₹100
- Must be in writing
- Exception:
- Mortgage by deposit of title deeds (can be oral with delivery of documents)
Lease
- Lease must be in writing if:
- It is from year to year, or
- For a term exceeding one year, or
- Reserves yearly rent
Transfer of Intangible Property
- Rights like reversion (future interest) must be in writing.
Historical Position
- Before the Transfer of Property Act:
- Delivery of possession was the main requirement.
- After the Act:
- Writing and registration are required in specified cases.
Distinction / Comparison
| Basis | Oral Transfer | Written Transfer |
|---|---|---|
| Form | No written document | Written document required |
| Validity | Valid if law permits | Mandatory in specified cases |
| Proof | Difficult to prove | Easier to prove |
| Example | Gift of movable property | Sale of land above ₹100 |
Practical Example
- A gives a movable item like a book to B. This can be an oral transfer.
- A sells land worth more than ₹100 without a written document. This is invalid.
- A leases property for 2 years orally. This is not valid as writing is required.
- A creates a mortgage by depositing title deeds. This can be valid without writing.
Summary
- Section 9 allows oral transfer where law does not require writing.
- Oral transfer is valid mainly for movable property and simple cases.
- Writing is compulsory for sale of immovable property above ₹100.
- Mortgage and long-term lease require written documents.
- Oral transfer is harder to prove compared to written transfer.