X has two properties, property 'A' and property 'B'. He sells his property 'A' to Y and puts a condition that Y should not construct more than one storey on property 'A', so that property 'B', which he retains, shall hav

CS Executive · Economic and Commercial Laws · PYQS · December 2019
X has two properties, property 'A' and property 'B'. He sells his property 'A' to Y and puts a condition that Y should not construct more than one storey on property 'A', so that property 'B', which he retains, shall have good light and free air. Ascertain, whether condition imposed by X is valid under the Transfer of Property Act, 1882?

Answer & Explanation:

According to Section 11 of the Transfer of Property Act, 1882, where any condition has been made in respect of one piece of immovable property for the purpose of securing the beneficial enjoyment of another piece of such property then such condition is valid. This is without affecting the other rights of both the parties, i.e., transferor and transferee. In the given case, Mr. X imposes a condition on the sale of property 'A' to Y, restricting construction to one storey, for the beneficial enjoyment (good light and free air) of property 'B', which X retains. Since the condition imposed by Mr. X is for the benefit of another property which he retains, such a condition is valid as per the provisions of Section 11 of the Transfer of Property Act, 1882.

Topics: Transfer of Property Act, 1882

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