Section 42 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
An owner sometimes transfers property but keeps the right to take it back in certain circumstances. If he then transfers the same property to someone else for value, what happens to the first transfer? Section 42 of the Transfer of Property Act, 1882 gives the answer. This article reads it as per the text of the Act consulted.
Where a person transfers immovable property reserving a power to revoke the transfer, and subsequently transfers the property for consideration to another transferee, the later transfer operates in favour of that transferee as a revocation of the former transfer to the extent of the power, subject to any condition attached to the exercise of the power.
The words of the section
Section 42 reads: "Where a person transfers any immovable property, reserving power to revoke the transfer, and subsequently transfers the property for consideration to another transferee, such transfer operates in favour of such transferee (subject to any condition attached to the exercise of the power) as a revocation of the former transfer to the extent of the power."
Break it into parts.
| Part | Meaning |
|---|---|
| "transfers any immovable property" | The section is about immovable property |
| "reserving power to revoke the transfer" | In the first transfer, the transferor kept a power to revoke it |
| "subsequently transfers the property for consideration to another transferee" | Later, he transfers the same property to a second person who gives consideration |
| "such transfer operates ... as a revocation of the former transfer" | The second transfer itself works as the act of revoking the first |
| "to the extent of the power" | The revocation goes only as far as the reserved power allows |
| "(subject to any condition attached to the exercise of the power)" | If the power can only be used on a condition, that condition still has to be met |
So the second transfer does two jobs at once. It transfers the property to the new person and it revokes the earlier transfer, without any separate notice of revocation being needed on the face of this section. The text is silent on any other formality, so the terms of the reserved power in the first document must be read carefully, ideally in a legal consultation before you pay or sign.
The Act's illustration, retold
A lets a house to B, and reserves power to revoke the lease if, in the opinion of a specified surveyor, B should make a use of it detrimental to its value. Afterwards A, thinking that such a use has been made, lets the house to C. This operates as a revocation of B's lease, subject to the opinion of the surveyor as to B's use of the house having been detrimental to its value.
The illustration shows the condition working. A's power depends on the surveyor's opinion. A cannot simply decide for himself that the use is harmful. The later letting to C works as a revocation only subject to that opinion.
Present-day examples
Example one. Naresh Gupta lets a shop to Divya for five years and keeps a power to revoke the letting if Divya sublets without his written consent. Divya sublets without consent. Naresh then lets the shop to Karan for consideration. The letting to Karan operates as a revocation of Divya's letting to the extent of Naresh's power. If the condition (sublet without written consent) is not made out, the revocation does not work to that extent.
Example two. Pooja Rane lets a godown to a trader for three years, reserving a power to revoke the letting if the rent is two months late. The rent is paid on time. She then lets the godown to Arjun for consideration. The condition for her power was not met, so the later letting does not revoke the earlier one to that extent.
Example three. An owner transfers a flat with a reserved power to revoke "at any time". The second transfer for consideration revokes the first, as the power is unconditional. The scope of the power is whatever the first document says.
What section 42 requires
- A reserved power to revoke. If the first transfer reserved no power, the section does not apply.
- Immovable property.
- A later transfer for consideration. A gift to a second person is outside the words of the section.
- Extent of the power. The revocation is limited by the power as reserved.
- Any condition attached must be satisfied.
Points for the second transferee
A person buying property that was previously transferred with a reserved power of revocation should:
- ask for the earlier deed and read the clause reserving the power;
- check the condition, if any, and how it is to be established (for example, whose opinion is needed);
- keep proof that the condition was met before relying on the revocation;
- understand that the second transfer revokes the first only "to the extent of the power".
If the first transferee is in possession, the buyer should also consider the rules on notice in section 3; see our article on section 3, notice.
Points for the first transferee
A person who receives property subject to a reserved power of revocation should know that:
- the power exists and may be used by a later transfer for consideration;
- the conditions of the power matter, so keep records that show he complied with the terms;
- a clear, specific condition (like the surveyor's opinion in the illustration) is a protection for him, because the owner cannot use the power at will.
Points for the owner who reserves the power
- State the power and its conditions in the first deed in clear words.
- If the power depends on someone's opinion, name that person.
- Keep a record of the facts that trigger the power.
- Do not assume that a later transfer will work as revocation unless it is for consideration.
How section 42 sits with nearby sections
- Section 41 protects a buyer from an ostensible owner; see our article on section 41.
- Section 43 deals with a person who wrongly says he is authorised to transfer and later acquires an interest; see our article on section 43.
- Section 12 makes void a condition ending an interest on insolvency or attempted transfer, with an exception for leases for the lessor's benefit; see our article on sections 10 to 12. Section 42 is a different matter, a power reserved by the transferor.
Registration, stamp duty and other charges for the documents are outside this Act; see our State-wise stamp duty and registration charges posts, and check the current law.
Need help with a transfer that has a reserved power of revocation?
If you hold, or are buying, property that was transferred with a power of revocation, the exact words of the power matter. We can read the deeds and advise on your position through a legal consultation.
Key takeaways
- Section 42 applies when a transferor reserves a power to revoke a transfer of immovable property and later transfers the property for consideration to another.
- The later transfer operates as a revocation of the former one to the extent of the power.
- Any condition attached to the power must be satisfied.
- The Act's illustration shows a surveyor's opinion as such a condition.
- The section does not apply where no power was reserved or where the later transfer is without consideration.
- Later amendments and State changes should be checked.
Read next
- Section 41: transfer by ostensible owner
- Section 43: transfer by unauthorised person who later acquires interest
- Sections 10 to 12: conditions restraining alienation and enjoyment
- Lease of Immovable Property -- Section 105
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.