Property that is attached to the ground is considered immovable property. What is more to it? Let’s find out.
In almost every century, India has been a country that has dramatically undergone a major regime shift. It’s not surprising that the laws regarding property and its classification can get confusing. Any asset that cannot be shifted or relocated is an Immovable Property. Many facts concerning significant laws are associated with the details of immovable property and its definition.
Land, house, pond, shop, factory buildings, and many more are considered immovable property. They change according to the legal ownership by individuals and organizations, and the land and revenue administration of the official authorities of the government handles such assets. Numerous legal protections are provided for immovable property, and the owner can not change until and unless the current owner has signed an agreement.
What Is the History of Immovable Property?
- In India, the Britishers introduced the Transfer of Property Act of 1882. Previously before this Act, the responsibility for laying down all the property-related guidelines used to lie on subsedars and zamindars of the village.
- The statutes for the transfer of property are focused on improving the social and economic aspects of the property.
- The property is not transferrable without a will, gift deed, or partition and simultaneous registration of the property in the beneficiary’s name.
- One can transfer property through a registered gift deed under section 122 of the Act.
- The transfer of immovable property is done with voluntary consent without any consideration.
- The relinquishment deed cannot execute if another person is not a legal heir.
- An individual must be competent to be legally eligible for transferring property.
- Legal age and mental stability are necessary for the person willing to transfer.
- If the property value exceeds Rs.100, it is compulsory to register it under the Registration Act of 1908.
- According to the Indian Stamp Act of 1899, it is subject to Stamp duty. Also, the rule of rule 18(1)(ii) of the CCS ( conduct ) rules, 1964, states that Government servants must submit annual property returns ( IPR ). They must provide full particulars of their immovable, inherited, or held-on lease or mortgage, either in their name or in another family member or the name.
Kinds of Immovable Property
As per the definition of immovable property, immovable property is a structure directly or indirectly attached to the ground. For instance, a house is attached to the ground, and hence it is an Immovable property.
One crucial thing to remember is that the land on which the house is built is also considered tangible immovable property. Following the global real estate market, a home and the land surrounding it are included in an immovable property.
Also, any item or part of the house that comes with it and falls under the house’s functioning, like drainage systems or air conditioning units, is included.
List of Immovable Properties
- Houses, Land, and Trees are attached to the ground.
- Factory Buildings.
- Garden or a farm.
- Right to hold an exhibition or a fair on an immovable property.
- Contract for cutting and planting bamboo for a certain amount of time.
- If statues, paintings, or other decorative paintings are installed to attach to the Tenement permanently, they can be classified as immovable.
- Commercial work land.
- Beneficial interests arise from the land, for example, right of way or an easement.
- The government made contracts for public work, servitude, or other rights over the property.
- Extracting gold, silver, coal, or other minerals from mines and their rights.
- Rights of the fishery, i.e., right associated with catching and collecting fish from a pond, lake, or river.
- Mines, quarries, or slag dumps of land.
- Right to collect Lac from its trees.
- Ferry right, i.e., right of transportation via rivers.
- Right to take forest produces and soil for making bricks, e.g., tender leaves, etc.
- Mortgage loans, i.e., a loan acquired by mortgaging an immovable property.
- Equity of Redemption.
- Right to collect dues from a fair or hut.
- Right of receiving dues at a funeral by Maha Brahmin.
- Temple hereditary priest and emoluments in a property.
Rights Enjoyed with Immovable Properties
You will also have some associated rights with the property if you are an owner of an immovable property. It includes:
Rent collection: You have the right to collect rent from tenants if renting or leasing the property to someone.
Ferry rights: In case you own a water body, you have the right to use a vessel and use it to transport water vehicles across it for a certain payment in exchange.
Dues collection: if you have rented or leased out the property to someone, you are eligible to collect dues for it.
Fishery rights: Within the vicinity of your immovable property, you can also fish the water from the water body; however, only the owner holds these exclusive rights.
Right of way: You are eligible to lend the land for private or public movements, and you can even sue someone to have committed legal offenses with it in case of trespassing.
Difference between Movable and Immovable Property
The distinction between movable and immovable property is as follows:
- The definition of movable or mobile property can be given as a property that can effortlessly transfer from one point to the other where there is any shortcoming about its quantity, capacity, or quality.
- On the other hand, the immovable property loses its originality in quality, quantity, and shape, becoming known as immovable property. One more fact associated with the immovable property is that it isn’t transferrable without causing damage to the originality.
- The properties known as immovable are categorized as crops, lawns, stocks, and shares. It also comprises the benefits derived from land or anything in its correlation.
- It is deemed immovable property if it is somewhat linked to the land or induced to sink further into the earth by an external force. Until the contrary is shown, the assumption is that the object is mobile if it rests only on its weight on the ground.
- If the goal of annexation is to offer a long-term benefit to the land to which it is linked, it is immovable property. Though the only purpose of the thing is to be enjoyed, it is movable property, even if it is fixed on the earth.
- Hereditary allowances, rights of way, ferries, and fisheries; the right to collect rent and profits from immovable property; a mortgage obligation; a one-year right to cut grass; a factory; and so on are examples of land advantages.
- Examples include the right to worship, royalty, a sale order for immovable property, government promissory notes, growing crops, a rent arrears decree, standing timber, and grass.
- The registration of an instrument is required when transferring immovable property. There is not any prerequisite if there is any transfer to be done regarding the movable property.
Immovable property is defined as not mobile or cannot transport due to the owner’s location. Ownership rights remain at the property’s site and can be transmitted from one person to another but not from one area to another. Land and buildings are forms of moveable properties.
The concept of immovable property is formed to enhance the social and economic characteristics of the property. Immovable property refers to real estate (such as your house, company, or manufacturing plant), whereas movable property pertains to movable assets (such as your computer, jewelry, vehicles, etc.).
Is a tree a movable or immovable property?
A tree can be considered both, i.e. movable and immovable. When trees are harvested for fruits, etc., they are considered immovable property; however, when they are cut down for timber or construction purposes, they are considered movable property.
Under international private law, what is the rule of succession for an immovable property?
The agreements or conventions about private international law are put into effect if any dispute exists among international parties. Lex situs is a legal maxim that comes under private law, meaning the law of the land.
Are immovable properties entitled to tax exemption?
There has been an exception for immovable properties regarding sales and central tax.
How is an immovable property transferred?
Immovable property can only transfer in a few ways, including, on a mortgagee lease, through sale, as a gift, or through an actionable claim.