Meaning of Ostensible Owner
A transfer of property by an ostensible owner refers to a situation where a person who is not the true owner of a property transfers it to another person who believes that the transferor is the owner. In such a situation, the transferee acquires a good title to the property, even if the transferor did not have the right to transfer the property in the first place.
Conditions of Transfer of Property by Ostensible Owner
The Transfer of Property Act, 1882 provides that a transfer made by a person who is not the owner of the property but who has the appearance of being the owner is valid if certain conditions are met. The conditions are:
- The transfer must be made by a person who has the appearance of being the owner of the property.
- The transferee must act in good faith, i.e., they must believe that the transferor is the owner of the property.
- The transfer must be for value, i.e., the transferee must have paid consideration for the transfer.
- At the time of the transfer, the true owner must not have been in possession of the property.
Purpose of Transfer of Property by Ostensible Owner
The purpose of allowing transfer of property by an ostensible owner is to protect the interest of bona fide purchasers. If a person purchases property from someone who appears to be the owner, it is unfair to deny them ownership of the property if the transferor was not the true owner. This rule ensures that a person who has acted in good faith is not penalized for the misrepresentations of the ostensible owner.
However, the rule does not provide complete protection to the purchaser. If the true owner of the property comes forward and asserts their claim within a reasonable time, the transferee will lose their ownership rights. Therefore, it is important for the purchaser to take reasonable steps to verify the title of the ostensible owner before making the purchase.
Example: If a person who is not the true owner of a property represents themselves as the owner and sells the property to a third party, who acquires the property in good faith and for valuable consideration, the true owner of the property may be estopped from denying the transfer of the property to the third party.
