Transfer of Property Act Section 41 — Transfer by ostensible owner

CHAPTER I PRELIMINARY

General

Summary

If someone appears to be the owner of a property, and the real owners have agreed—either openly or by their behaviour—that this person should be seen as the owner, then a sale or transfer made by that apparent owner to a buyer who pays for the property cannot be cancelled just because the apparent owner did not actually have the legal right to sell it. This protection applies only if the buyer, before paying, took reasonable steps to check that the seller had the authority to transfer the property and acted honestly throughout the deal.

Official Text

Where, with the consent, express or implied, of the persons interested in immoveable property, a person is the ostensible owner of such property and transfers the same for consideration, the transfer shall not be violable on the ground that the transferor was not authorised to make it:

Provided that the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith.