Section 43 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.
Imagine someone sells a plot he does not yet own, saying that he is authorised to sell it. Later he becomes the owner. Can the buyer insist on getting it? Section 43 of the Transfer of Property Act, 1882 says he can, if he chooses. This article reads it as per the text of the Act consulted.
Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer it for consideration, the transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in the property at any time during which the contract of transfer subsists. This does not impair the rights of transferees in good faith for consideration without notice of the option.
The words of the section
The words "" appear in square brackets in the copy consulted, which marks amended wording. The text reads: "Where a person erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists."
Break it into steps.
| Step | What happens |
|---|---|
| 1 | The transferor represents, fraudulently or erroneously, that he is authorised to transfer the property |
| 2 | He professes to transfer it for consideration |
| 3 | Later, he acquires an interest in the property |
| 4 | At the option of the transferee, the earlier transfer operates on the interest the transferor has now acquired |
| 5 | This is possible at any time during which the contract of transfer subsists |
The option belongs to the transferee alone. He may take the benefit of the interest that comes to the transferor later, or he may choose not to.
If you are the buyer in such a case, early advice on whether to exercise the option and how, through legal dispute resolution, can protect your position while the contract still subsists.
"Fraudulently or erroneously"
The section covers both a dishonest and an honest mistaken claim of authority. It does not matter whether the transferor lied or was simply wrong about his authority. Either way, the transferee has the option. For how fraud is treated in contract law, see the Contract Act articles on this site; the text of this Act says nothing more about it.
"During which the contract of transfer subsists"
The option is available only while the contract of transfer is alive. If the contract has ended, the option goes with it. The text does not say how a contract ends, so the transferee should not wait. The illustration speaks of a transferee who has "not rescinded" the contract.
The Act's illustration, as printed
A, a Hindu who has separated from his father B, sells to C three fields X, Y and Z, representing that A is authorised to transfer the same. Of these fields, Z does not belong to A, it having been retained by B on the partition; but on B's dying, A as heir obtains Z. C, not having rescinded the contract of sale, may require A to deliver Z to him. This illustration is stated as printed.
The point is clear. A sold three fields, including one he did not own. Later A acquired the third field by inheritance. C, who had not rescinded, can require A to deliver it.
Present-day example
Hardik Shah signs an agreement to sell a plot to Meera Kulkarni for Rs. 20,00,000 and tells her he is authorised to sell it. In fact the plot stands in his mother's name. Meera pays the price. A year later Hardik's mother dies and Hardik inherits the plot. The agreement is still alive and Meera has not cancelled it. Under section 43, Meera has the option to have the transfer operate on the interest Hardik has now acquired, so she can ask for the plot. If she prefers to withdraw, she may consider what remedies are open to her; this section does not say what those are.
The protection for later buyers
The second paragraph says: "Nothing in this section shall impair the right of transferees in good faith for consideration without notice of the existence of the said option."
So if, after Hardik acquires the plot, he sells it to Dinesh, who pays and has no notice of Meera's option and acts in good faith, Dinesh's right is not impaired by section 43. This matches the general approach in other sections that treat paying buyers without notice differently. For notice, see our article on section 3, notice. Because notice includes actual possession and registered instruments under the conditions of section 3, Meera can strengthen her position by staying in possession where that is lawful, registering what can be registered, and keeping the agreement on record. Check the current registration law and your State's rules.
What section 43 does not decide
- How the option is exercised. The text does not set a form, a notice or a deadline beyond "during which the contract of transfer subsists".
- What the transferee can do instead. The text does not list other remedies.
- Whether the transfer was valid at the start. The section deals with what happens when the transferor later acquires an interest.
- Other laws. Other Acts, such as those on specific performance, may apply; see our post on specific performance of contracts and check the current law.
How it differs from nearby sections
| Section | Situation | Result |
|---|---|---|
| 41 | A person is the ostensible owner with the consent of persons interested | Transfer to a careful, good-faith buyer for consideration is not voidable for want of authority |
| 42 | Transferor reserved a power to revoke and transfers again for consideration | The later transfer revokes the earlier one to the extent of the power |
| 43 | Transferor wrongly claims authority and later acquires an interest | At the transferee's option the transfer operates on the later-acquired interest |
See our articles on section 41, transfer by ostensible owner and section 42, transfer by person with power to revoke. Section 35, election, deals with another case where a person professes to transfer what he cannot; see our article on section 35.
Practical checklist for a buyer
- Before paying, ask the seller to prove authority. If he claims to be authorised, ask for the document.
- If you later learn the seller was not authorised, do not lose time; the option lasts only while the contract subsists.
- Keep the agreement, receipts and any registered papers.
- Watch for later acquisitions by the seller, such as inheritance or purchase.
- Take advice before you rescind or exercise the option.
Need help if the person who sold to you did not own the property?
If you bought from someone who later turned out to lack authority, or who has since acquired the property, time matters. We can assess your options through legal dispute resolution.
Key takeaways
- Section 43 applies where a person fraudulently or erroneously represents that he is authorised to transfer immovable property and professes to transfer it for consideration.
- At the transferee's option, the transfer operates on any interest the transferor later acquires while the contract of transfer subsists.
- Transferees in good faith for consideration without notice of the option are not affected.
- The Act's illustration is stated as printed.
- The text does not prescribe how the option is exercised.
- Later amendments and State changes should be checked.
Read next
- Section 41: transfer by ostensible owner
- Section 42: transfer by person with power to revoke earlier transfer
- Section 44: transfer by one co-owner and family dwelling house
- Specific Relief Act for Property Disputes -- Practical Guide
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.