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What is immovable Property? Rights and things associated with it

Admin 29 Mar 2024 2,373 Views
Knowledge

The term property has been used since the beginning of mankind. Generally, the property can be described as things that belong solely to a particular person. Having a property brings the satisfaction of belongingness or possession in one's heart and mind. It is considered to be a sense of honour. Usually, the property is classified into 2 main categories: Movable property and immovable property. Both the types have their own set of guidelines and carry equal importance.

What is immovable property?

As the name suggests, immovable properties are those properties or belongings that cannot be moved from one place to another. It is described as any type of property which has its own right of ownership and cannot be moved. Immovable property can be referred to as real estate. If an owner wants to transfer the ownership to the next person/party, then they have to register it under the Indian Registration Act, 1908, if its value exceeds 100 rupees.

Section 3 (26) of the General Clause Act, 1847 describes the immovable property as " Immovable property will include land, advantages to come out of the land, and objects attached to the Earth, or permanently fastened to anything attached to the Earth."

Rights associated with immovable properties:

 

1. Right of rent collection – The person owning an immovable property is eligible to collect rent by leasing the concerned property.

2. Right of dues collection – The property owner can collect dues from other persons or parties who cultivate their crops on the concerned land.

3. Right of the ferry – The property owner has the right to maintain a vessel or ferry on the water bodies to ease the transportation problems but in exchange for payment.

4. Right of way – The owner can make his/her property either public or private. Trespassing is considered to be an offense in legal terms.

5. Right of fishery/factory – The owner has the right to fish in the water bodies or can set up a factory on the land.

 

What are the examples of immovable property?

According to the Section 269UA(d) of the Income Tax Act, 1961, the immovable property includes any land, building, or section of the building that has machine equipment, plant, furniture, fittings, and others attached to it. Examples of the immovable properties include:

● House, land, and trees which are attached to the Earth

● Factories

● Machine equipment required for commercialization purposes

● Statues, paint works and other decorative items which cannot be moved on their own

● Fertilizer used for plants and trees

● Mines or quarries

● Cutting of the bamboo trees up to a term mentioned in the contract

The examples of the immovable properties can be classified properly in the following categories:

1. Land – It includes the Earth's surface and the ground beneath the Earth's surface. It also includes the objects present on or under the surface in its natural state, such as minerals, lakes, rivers, ponds and even the buildings, walls and fences around the property, since they are immovable. If any natural thing occurs on that land, such as a river or any water bodies, that will be considered the part of the land only.

 

2. Benefits arising out of the land – Despite having a physical land, all the benefits that arise from the land will be considered immovable property only, such as ferries, fisheries and hereditary allowances. It also includes all the rights that have been mentioned before in this article. The term given for the benefits arising from the land is "profit a prendre."

 

3. Things attached to the Earth – include the following according to the section 3 of the Transfer of Property Act:

● Things rooted on the Earth include trees, plants, shrubs, and herbs. A tree is considered to be immovable property if the owner intends to possess the benefit of nutriment or sustenance and enjoy the fruits of the trees. It includes mango trees. But the property is considered to be movable if the owner intends to utilize the wood or timber for building the house or industry. It includes Babool, neem, etc.

● Things embedded in the Earth: It includes houses, buildings, fences, etc. not everything is considered to be immovable if embedded in the Earth. Rather there are some things such as a ship's anchor which remains embedded in the Earth but are not called an immovable property.

● Things attached to the embedded things: The doors and windows attached to the houses embedded in the Earth are considered immovable. But the curtains and electric fans are all the movable properties.

● Chattel attached to the Earth: Any movable property attached to the Earth only comes under the immovable property.

 

What is not included in the immovable property?

The following things are not included in the immovable property:

1. Standing timber – Timber from babool, shisham, neem, peepal or banyan tree is not included. Since the wood or the timber from such trees are used for the building purpose.

2. Growing crops – The crops which do not have their independent existence, such as creepers like pan etc., are not included in the immovable properties. These creepers grow on their own and do not require any human involvement.

3. Grasses – Grasses are movable property since it is used as fodder for animals. 

What is the difference between movable and immovable property?

   Movable property

 Immovable property

 

  Anything that can be moved from one place to other.

Anything which remains attached permanently to the earth's surface cannot be moved.

 

  This can be transferred based on contract laws.

They are transferred based on property laws.

 

  One can either register or won’t register the property.

Registration is compulsory for such properties.

 

  It can be easily portioned.

Partition or division is not allowed.

 

  This property is subjected to value-added tax (VAT).

This property is subjected to stamp duty tax.

 

  Examples: Watches, vehicles, jewelry, cash etc.

Examples: houses, buildings, trees, water bodies, etc.

 


Conclusion

After going through this entire article, the reader will have a clear idea about the immovable properties and their associated pros and cons. Before buying a property, it is always recommended to go through all the terms associated with a property as it will help them in the long run. Though immovable property sounds more advantageous than movable properties, some disadvantages are attached to it, such as it cannot be transferred or partitioned. Hence, the reader should be aware of such things before moving into a decision.

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

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