Sections 10-12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 10, 11 and 12 deal with conditions that try to control what the person receiving property can do with it. As per the text of the Act consulted, a condition that absolutely restrains transfer is void (with a lease exception), a direction on how an absolute interest is to be used is ignored in the way section 11 describes, and a condition that an interest should cease on insolvency or an attempt to transfer is void (again with a lease exception).
Section 10: a condition or limitation absolutely restraining the transferee, or anyone claiming under him, from parting with or disposing of his interest is void, except in a lease where the condition is for the benefit of the lessor or those claiming under him. Section 11: where an interest is created absolutely, a direction that it be applied or enjoyed in a particular manner does not stop the holder from receiving and disposing of it as if there were no direction; the second paragraph keeps a transferor's right to enforce a direction made between two pieces of immovable property. Section 12: a condition making an interest cease on insolvency or on trying to transfer it is void, again subject to the lease exception.
Section 10: condition restraining alienation
"Alienation" means parting with property. Section 10 says: "Where property is transferred subject to a condition or limitation absolutely restraining the transferee or any person claiming under him from parting with or disposing of his interest in the property, the condition or limitation is void".
Two words do the work: absolutely and void. A condition that stops the transferee from ever transferring, to anyone, in any way, is void. The transfer itself stands; the condition falls away. The wording speaks of a restraint that is absolute; it does not say what happens to a limited restriction. If you are drafting a deed with such a clause, agreement drafting support can help you word it with this section in mind.
Example. Hemant Bansal gifts a flat to his son Rohan with a clause that Rohan "shall never sell, mortgage or give the flat to anyone". That is a condition absolutely restraining disposal. Under section 10 the condition is void, and Rohan keeps the flat.
The lease exception
The section excepts "the case of a lease where the condition is for the benefit of the lessor or those claiming under him". So a lease clause such as a ban on the tenant assigning the lease without the landlord's consent is not caught, because it benefits the lessor. See our guide on sub-lease agreements and consent.
The proviso, as printed
The section ends with a proviso that property may be transferred to or for the benefit of a woman (not being a Hindu, Muhammadan or Buddhist), so that she shall not have power during her marriage to transfer or charge the property or her beneficial interest in it. The proviso is stated here as printed. Check the current text.
Section 11: restriction repugnant to interest created
The first paragraph covers this: an interest is created absolutely in favour of a person, but the terms direct that it be applied or enjoyed in a particular manner. The holder is then "entitled to receive and dispose of such interest as if there were no such direction".
Example. Fatima Sheikh transfers a plot to Laxman Rao outright and writes that he must use the proceeds of the plot only for his daughter's schooling. The interest is absolute. Under section 11 Laxman can receive and dispose of the interest as if the direction had not been made. If Fatima wanted a limited arrangement, she would need a different structure, for instance a transfer of a limited interest. Trusts are a separate subject that this article does not cover.
The second paragraph: two pieces of immovable property
The second paragraph, printed in square brackets in the copy consulted, says that where a direction has been made in respect of one piece of immovable property for the purpose of securing the beneficial enjoyment of another piece, nothing in section 11 affects any right the transferor may have to enforce that direction or any remedy he may have for breach of it.
Example. Sunil Kapoor sells the rear half of his plot to Bhavna and keeps the front half with his house. The deed says Bhavna may build only up to two floors so that the light to Sunil's house is not blocked. This is a direction about one piece of land to secure the enjoyment of another. Section 11 does not take away Sunil's right to enforce it. The related rules on obligations that attach to land are in section 40; see our article on section 40, restrictive covenants and obligations running with land.
Section 12: condition making interest determinable on insolvency or attempted alienation
The heading in the copy reads "Condition making interest determinable or insolvency or attempted alienation" and the word "or" before "insolvency" looks like a slip for "on". The body is clear: where property is transferred subject to a condition or limitation making any interest in it, reserved or given to or for the benefit of any person, cease on his becoming insolvent or endeavouring to transfer or dispose of it, the condition or limitation is void.
Nothing in section 12 applies to a condition in a lease for the benefit of the lessor or those claiming under him.
Example. Prakash Naidu leaves a house in a transfer to Girish for life, with a clause that Girish's interest ends if he becomes insolvent or tries to sell it. Section 12 makes that condition void. A lease clause letting a landlord end the lease if the tenant becomes insolvent is for the lessor's benefit, and the lease exception applies.
Quick comparison
| Section | What is void or ignored | Exception or limit |
|---|---|---|
| 10 | A condition or limitation absolutely restraining disposal | Lease condition for the lessor's benefit; the proviso as printed |
| 11 (first paragraph) | A direction on how an absolute interest must be applied or enjoyed has no hold on the holder | None stated in this paragraph |
| 11 (second paragraph) | Not ignored: a direction about one immovable property to secure another can still be enforced | Right of the transferor to enforce it is saved |
| 12 | A condition ending an interest on insolvency or attempted transfer | Lease condition for the lessor's benefit |
Drafting points
- Do not try to write a total ban on transfer into a gift or sale. If section 10 applies, the clause is void.
- In a lease, put restrictions in clear terms and show that they are for the lessor's benefit.
- If you want land to be used in a particular manner for the benefit of other land you keep, describe both pieces of property precisely and say so; see section 11, second paragraph.
- Avoid conditions that cut an interest short on insolvency; section 12 makes them void.
- If you want a limited interest, choose a form that creates a limited interest instead of an absolute transfer with directions.
The article on section 25, conditional transfer covers a different group of conditions.
Need help drafting conditions in a transfer or lease?
A condition that the law treats as void wastes the effort of drafting it and can mislead the parties. Our team can draft or review deeds so the conditions you intend are ones the Act allows, through agreement drafting.
Key takeaways
- A condition absolutely restraining a transferee from disposing of his interest is void (section 10), except a lease condition for the lessor's benefit.
- A direction on how an absolute interest is to be enjoyed does not bind the holder in the way the transferor intended (section 11, first paragraph).
- A direction about one immovable property to secure the enjoyment of another keeps the transferor's right to enforce it (section 11, second paragraph).
- A condition ending an interest on insolvency or an attempt to transfer is void (section 12), subject to the lease exception.
- The proviso to section 10 is quoted as printed; check the current text.
- Later amendments and State changes should be checked.
Read next
- Sections 8 and 9: operation of transfer, legal incidents and oral transfer
- Sections 13 and 14: transfer for unborn person and rule against perpetuity
- Section 40: restrictive covenants and obligations running with land
- Specimen Lease Deed -- Residential Property Format and Clauses
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.