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CHAPTER II OF TRANSFERS OF PROPERTY BY ACT OF PARTIES · (B) Transfer of Immoveable Property

Section 40: Burden of obligation imposing restriction on use of land

The Transfer of Property Act, 1882

Where, for the more beneficial enjoyment of his own immoveable property, a third person has, independently of any interest in the immoveable property of another or of any easement thereon, a right to restrain the enjoyment1 [in a particular manner of the latter property], or

or of obligation annexed to ownership but not amounting to interest or easement.—where a third person is entitled to the benefit of an obligation arising out of contract and annexed to the ownership of immoveable property, but not amounting to an interest therein or easement thereon,

such right or obligation may be enforced against a transferee with notice thereof or a gratuitous transferee of the property affected thereby, but not against a transferee for consideration and without notice of the right or obligation, nor against such property in his hands.

Illustration

A contracts to sell Sultanpur to B. While the contract is still in force he sells Sultanpur to C, who has notice of the contract. B may enforce the contract against C to the same extent as against A.

Footnotes in the official text

  1. 1.Subs. by s. 12, ibid., for “of the latter property or to compel its enjoyment in a particular manner”.

Questions on this section

1 question in 4 of our papers cite Section 40. Try these from the free papers:

  1. 1. X agrees in writing to sell his plot to Y. While the agreement is still in force, X sells and conveys the same plot to Z for consideration. Z knew of the agreement with Y when he bought. Under Section 40 of the Transfer of Property Act, 1882:

Practise questions on Transfer of Property Act