Section – 9 Oral Transfer – A transfer of property may be made without writing in every case in which a writing is not expressly required by law.
Mode of Transfer – There are two modes of transfer of property:
(a) delivery of possession and (b) registration.
(a) Delivery of possession – Where writing is not necessary under the Act, the property may be transferred orally i.e. only by delivery of possession. Normally the movable properties may be transferred by delivery of possession.
For example, sale of immovable property valuing less than one-hundred rupees (except in Uttar Pradesh), month to month tenancy, mortgage by deposit of title-deeds, exchange of immovable property valuing less than rupees one-hundred.
Where writing is not necessary registration is also not necessary.
(b) Registration – Where registration is necessary, the transfer must be in writing. The Transfer of Property Act, has provided that following transfers must be made only through a written deed duly registered:
(1) Gift of an immovable property (S. 123)
(2) Sale of an immovable property of an exceeding rupees one-hundred in value (S.54)
(3) Sale of reversion or other intangible property irrespective of its value (S. 54)
(4) Leases from year to year or for a term exceeding one year or reserving a yearly rent. (S.107)
(5) Simple mortgage irrespective of the amount secured (S.59)
(6) Other kinds of mortgage (Except mortgage by deposit of title-deeds) where the sum secured exceeds rupees one-hundred (S.59)
(7) Exchange of immovable property exceeding rupees one-hundred (S.118)
(8) Transfer of actionable claims (registration is not necessary, writing is sufficient (S.130). In the abovementioned cases the transfer cannot be made orally. Except in the transfer of actionable claims (where writing is must but registration is not necessary) the transfers required to be made through instruments or written deeds, registration is also necessary.