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Under Section 105 of the Transfer of Property Act, 1882, what is a present transfer of the right to…

Under Section 105 of the Transfer of Property Act, 1882, a lease of immovable property is defined as a transfer of a right to enjoy such property, made for a certain time,…

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Under Section 105 of the Transfer of Property Act, 1882, what is a present transfer of the right to enjoy immovable property for a certain time, in return for consideration, on terms the transferee accepts?

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Correct answer D

Under Section 105 of the Transfer of Property Act, 1882, a lease of immovable property is defined as a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised (premium), or of money, a share of crops, service or any other thing of value (rent). Unlike a licence (which transfers no interest in property) or a mortgage (which transfers an interest to secure a debt), a lease transfers the right of enjoyment (possession and use) of immovable property.

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Option A

Incorrect. Under Section 58(a) of the Transfer of Property Act, 1882, a mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.

Option B

A merely executory agreement promises to grant a lease later. An instrument that itself grants a present right to enjoy the property must be assessed according to its operative terms.

Option C

Incorrect. Under Section 52 of the Indian Easements Act, 1882, a licence is a personal right to do or continue to do something in or upon the immovable property of the grantor, without transferring any interest in the property.

Option D

Correct. Under Section 105 of the Transfer of Property Act, 1882, a lease of immovable property is a transfer of a right to enjoy such property, made for a certain time (express or implied) or in perpetuity, for consideration.

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