Learn everything about immovable property in India: types, legal rights, differences from movable property, and critical facts.
Table of Contents
Introduction
The immovable property holds significant value in India’s legal, financial, and everyday contexts.
Whether buying a house, gifting land, or managing estate planning, it is crucial to understand what immovable property means and its implications.
In this blog post, we will explore the concept of immovable property, the various types, the associated legal rights, and how it differs from movable property.
Here is everything you need to know about immovable property in India.
What is Immovable Property?
Immovable property refers to assets that cannot be moved from one place to another.
This includes land, buildings, and other items permanently attached to the earth.
Unlike movable property, such as jewelry, cars, or computers, immovable property remains fixed, providing stability and long-term value.
Types of Immovable Property
There are several types of immovable property in India, each with unique characteristics:
- Land: Land includes any portion of the earth’s surface, including objects placed with the intention of permanent annexation, like fences and wells. Example: Agricultural land in rural India that is used for farming purposes.
- Buildings: Houses, commercial properties, and other structures permanently attached to land are classified as immovable. Buildings tend to appreciate, making them a popular investment. Example: A residential apartment in Mumbai or a commercial office space in Bangalore.
- Benefits Arising from Land: Intangible benefits like the right to collect rent or profits are also considered immovable property. These benefits add significant value to land ownership. Example: Renting out farmland to generate additional income.
- Things Attached to the Earth: Trees and plants are considered immovable if they intend to continue benefiting from the soil. However, if grown for timber, they are classified as movable property. Example: Mango trees grown for fruit on a plantation are considered immovable property.
- Chattel Attached to Buildings: Items like doors, windows, or permanent decorations attached to a building are classified as immovable property. These fixtures are meant to be a permanent part of the structure.
Legal Rights Associated with Immovable Property
Owning immovable property in India comes with several rights:
- Right to Collect Rent: Property owners can legally collect rent if the property is leased.
- Right to Collect Dues: Owners can collect dues if a property is used for cultivation or other services.
- Right of Way: Owners can prevent trespassing on private land.
- Right of Fishery: This refers to the exclusive right to fish in a water body on your property.
- Right of Ferry: Owners can operate a ferry service on a water body tied to ownership.
These rights are essential for property owners to fully utilize their property and ensure they have control over its use and benefits.
Immovable vs. Movable Property: Key Differences
| Parameter | Movable Property | Immovable Property |
|---|---|---|
| Examples | Jewelry, vehicles, money | Land, houses, trees, factories |
| Registration | Not required | Must be registered if value > Rs. 100 |
| Transfer Process | Can be transferred easily | Requires deeds (e.g., will or partition) |
| Rights Used as Security | Pledge | Mortgage or lien |
Essential Aspects of Immovable Property
- Land as Immovable Property: Land includes the surface and any natural or human-made elements above or beneath it. It remains a crucial part of immovable property, whether used for residential, commercial, or agricultural purposes.
- Buildings as Immovable Property: Buildings are considered immovable because they are permanently attached to the ground. They often appreciate, which makes them attractive investments.
- Trees and Plants: Movable or Immovable?: Trees and plants are classified as immovable property if they are meant to continue benefiting from the soil. If they are grown for timber, they are considered movable.
- Easements: Rights Over Another’s Land: An easement is a right to use another person’s land for a specific purpose, such as accessing utilities. It is an essential aspect of immovable property rights. For example, a homeowner has the right to access a public utility line that crosses a neighbor’s property.
- Leasing Immovable Property: Owners can lease their immovable property to others, granting temporary rights to use it while earning rental income. Leasing is typical for both residential and commercial real estate in India.
- Mortgages and Immovable Property: Mortgages allow owners to use immovable property as collateral for loans. This allows property owners access to funds without selling the asset, offering financial flexibility.
Legal Requirements for Registration
In India, immovable property worth more than Rs. 100 must be registered under the Registration Act of 1908.
Registration is crucial for establishing legal ownership and avoiding disputes.
Proper registration helps prove ownership in a court of law, providing security for the owner.
Steps for Registration of Immovable Property
- Document Preparation: Ensure all documents like sale deeds, ID proofs, and PAN cards are ready.
- Payment of Stamp Duty: Pay the applicable stamp duty per state laws.
- Visit the Sub-Registrar Office: Both parties must visit the sub-registrar office to verify and submit documents.
- Witness Requirement: Two witnesses are generally required during registration.
Why Immovable Property is Important in India
Due to its non-depreciating nature, movable property is one of India’s most preferred investment options.
It provides long-term security, appreciates over time, and serves multiple purposes—residential, agricultural, or commercial.
Understanding your legal rights and procedures helps you make informed decisions, whether buying, selling, or inheriting property.
Practical Tips for First-Time Buyers
- Verify Ownership: Always verify the property’s title to ensure it is clear and undisputed.
- Check Legal Compliance: Ensure the property has all necessary approvals from local authorities.
- Consult a Lawyer: Consulting a property lawyer can help you navigate legal complexities and avoid common pitfalls.
If you are planning to invest or need more information, it is advisable to consult a legal expert or lawyer for guidance on taxation, gifting, and registration procedures in India.
Frequently Asked Questions
What is immovable property called in Hindi?
In Hindi, immovable property is termed Achal Sampatti, which refers to assets like land or buildings that cannot be moved.
Can the immovable property be gifted?
Immovable properties can be gifted, but a gift deed is required. Special rules may apply to gifts between family members, making them tax-free in some cases.
What rights do I have if I own immovable property?
Depending on how the property is used, you have rights such as the right to collect rent, the right of way, and the right to fishery.
Is land considered an immovable property?
Yes, land is considered immovable because it cannot be physically moved.
What are the exemptions on the gift of immovable property?
Exemptions apply to gifts between relatives, such as parents to children or siblings, which may be exempt from specific tax regulations.
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