Section 7 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.
Section 7 answers who may transfer property. As per the text of the Act consulted, the answer is any person who is competent to contract and is entitled to transferable property, or who is authorised to dispose of transferable property that is not his own. It also says how much he can transfer and on what terms.
Two kinds of person can transfer: one who is competent to contract and entitled to transferable property, and one who is authorised to dispose of transferable property not his own. Either may transfer wholly or in part, and absolutely or conditionally, but only "in the circumstances, to the extent and in the manner, allowed and prescribed by any law for the time being in force". The section does not itself define competence to contract.
The words of the section
Section 7 reads: "Every person competent to contract and entitled to transferable property, or authorised to dispose of transferable property not his own, is competent to transfer such property either wholly or in part, and either absolutely or conditionally, in the circumstances, to the extent and in the manner, allowed and prescribed by any law for the time being in force."
Read slowly, the section has four parts:
| Part | What it adds |
|---|---|
| Who | A person competent to contract and entitled to transferable property, or a person authorised to dispose of transferable property not his own |
| What | Transferable property (which section 6 and other laws define) |
| How much | Wholly or in part |
| On what terms | Absolutely or conditionally, as the law in force allows |
If you need to be sure which route you fall under, a short legal consultation before signing can fix that.
First route: competent to contract and entitled
A person qualifies if he meets both tests together.
- Competent to contract. The Act does not say who is competent to contract. That question belongs to the contract law, which the Transfer of Property Act ties itself to in section 4 (the parts of this Act that relate to contracts are taken as part of the Indian Contract Act, 1872). Our article on who is competent to contract under section 11 of the Indian Contract Act, 1872 deals with that test. Check the current text of the Contract Act.
- Entitled to transferable property. He must actually hold a right in property that can be transferred. Section 6 and other laws list what cannot be transferred. See our article on section 6, what property can and cannot be transferred.
If either test fails, the person is not within this route. A competent person who owns nothing cannot transfer it; an owner who is not competent to contract does not come within this limb either.
Example. Kamal Arora owns a plot in his own name and is competent to contract. He meets both tests and can transfer the plot.
Second route: authorised to dispose of property not his own
A person who is not the owner can still transfer if he is authorised to dispose of the property. The section does not name who. It speaks only of authority to dispose of transferable property that is not his own.
This covers a person who has been given the authority, whether by the owner or by the law. Two examples:
- A person holding a power from the owner to sell on his behalf; see our guide to power of attorney for property.
- A mortgagee with a power of sale, which this Act deals with in section 69; see our article on section 69, the mortgagee's power of sale without court.
The authority has to be real and has to cover the property and the type of transfer. A person who says he has authority should be asked to produce it.
Example. Anjali Rao is abroad and signs a document appointing her brother Sanjay to sell her flat. Sanjay does not own the flat but is authorised to dispose of it. Before buying, the buyer, Tarun Mehta, should read the authority document, check its scope and keep a copy with the sale papers.
Wholly or in part
A competent person may transfer the whole of his interest or a part of it. A part can be a share, a portion of land or a limited interest, depending on what he holds.
Example. Geeta Iyer owns a house with an upper floor. She can transfer the whole house, or only a part, if the law and the nature of the property allow it. The section does not set the manner of dividing property; that depends on the property and the other laws.
Absolutely or conditionally
A transfer may be absolute, with no strings, or conditional, with a condition attached. But the section says this is "allowed and prescribed by any law for the time being in force". So section 7 does not give an unlimited power to attach conditions. Later sections limit some conditions, such as a condition that absolutely restrains the transferee from parting with the property. See our article on sections 10 to 12, conditions restraining alienation and enjoyment and the article on sections 25 and 26, conditional transfer and condition precedent.
"Allowed and prescribed by any law"
The last words tie section 7 to the rest of the legal system. The circumstances, extent and manner of a transfer are those allowed and prescribed by any law in force. This Act does not list those laws. Local land laws, laws on specific kinds of property and the registration law can each affect what a person may do. Check the law that governs your property and your State's rules, and see our companion guidance on documents that must be registered.
What to check before relying on a transferor
- Is the person competent to contract? (Check the Contract Act.)
- Does he hold a right in the property that can be transferred? (Check the title papers and section 6.)
- If he is not the owner, what is his authority, who gave it and does it cover this transfer?
- Is he transferring the whole or a part, and is the part clearly described?
- Is the transfer absolute or conditional, and is the condition one the law allows?
- Does any other law limit the circumstances, extent or manner of the transfer?
Need help with a property transfer?
If you are not sure that the person offering to sell or gift property is competent and entitled, or has real authority, ask before you pay. A legal consultation can clarify which route applies and what documents to ask for.
Key takeaways
- Section 7 allows two kinds of person to transfer: one competent to contract and entitled to transferable property, and one authorised to dispose of transferable property not his own.
- A transfer may be of the whole or a part, absolute or conditional, as the law in force allows.
- Competence to contract is a matter for the contract law, not this section.
- Entitlement and authority must be real and cover the property.
- Section 7 itself does not remove limits found in later sections or in other laws.
- Later amendments and State changes should be checked.
Read next
- Section 6: what property can and cannot be transferred
- Section 5: transfer of property defined and living person
- Sections 8 and 9: operation of transfer, legal incidents and oral transfer
- Power of Attorney for Property -- Types and Validity
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.