Sections 45-47 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.
When two or more people buy a property together, what share does each hold? When co-owners with different interests sell together, how is the price divided? And when they sell a share without saying whose share it comes from, whose does it come from? Sections 45, 46 and 47 of the Transfer of Property Act, 1882 answer these three questions, as per the text of the Act consulted.
Section 45: buyers who pay from a common fund hold interests identical, as nearly as may be, to their interests in the fund; buyers who pay from separate funds hold interests in proportion to what each advanced; if there is no evidence, they are presumed equally interested. Section 46: sellers with distinct interests share the price equally if their interests were of equal value, and proportionately to value if unequal. Section 47: if co-owners transfer a share without specifying whose shares it comes from, it comes equally from equal shares and proportionately from unequal ones. Sections 45 and 46 apply in the absence of a contract to the contrary.
Section 45: joint transfer for consideration
Section 45 applies "where immovable property is transferred for consideration to two or more persons". It gives three rules, each applying "in the absence of a contract to the contrary", except the last, which is a presumption.
| Case | Rule |
|---|---|
| Price paid out of a fund belonging to the buyers in common | Each is entitled to an interest in the property identical, as nearly as may be, to his interest in the fund |
| Price paid out of separate funds belonging to them respectively | Each is entitled in proportion to the share of the price he advanced |
| No evidence of interests in the fund, or of the shares advanced | The buyers are presumed to be equally interested in the property |
The two main rules rest on how the price was paid, not on whose name is on the document. The presumption of equal shares comes in only when there is no evidence of the shares. Joint buyers can fix their shares clearly, and cover later sale, partition and exit, in a co-ownership agreement prepared through agreement drafting.
Example one (separate funds). Anita Rao, Bhavna Shah and Chetan Nair buy a flat for Rs. 90,00,000. Anita pays Rs. 45,00,000, Bhavna Rs. 30,00,000 and Chetan Rs. 15,00,000, each from his or her own money. Absent a contrary contract, their interests are in proportion to the shares advanced: one-half, one-third and one-sixth.
Example two (common fund). Three brothers hold a joint business fund, with the eldest holding a half interest and the other two a quarter each. They buy a godown out of that fund. Absent a contract to the contrary, their interests in the godown are identical, as nearly as may be, to their interests in the fund: half, a quarter, a quarter.
Example three (no evidence). Two friends buy a plot and neither can show how much each paid. They are presumed to be equally interested.
The lesson for buyers is practical. Write down each person's contribution and share in the sale deed or in a separate agreement among the buyers. The right to joint possession and partition of a co-owner's share is dealt with in section 44; see our article on section 44, transfer by one co-owner.
Section 46: sale by persons with distinct interests
Section 46 covers the reverse position: the property is transferred "for consideration by persons having distinct interests therein". In the absence of a contract to the contrary, the transferors are entitled to share in the consideration:
- equally, where their interests in the property were of equal value; and
- proportionately to the value of their respective interests, where the interests were of unequal value.
The Act's illustrations, retold
- (a) A owns a moiety (one-half), and B and C each a quarter share, of mauza Sultanpur. They exchange an eighth share of that mauza for a quarter share of another mauza. With no agreement to the contrary, A is entitled to an eighth share in the other mauza (Lalpura), and B and C each to a sixteenth share in it.
- (b) A is entitled to a life-interest in mauza Atrali and B and C to the reversion. They sell the mauza for Rs. 1,000. A's life-interest is ascertained to be worth Rs. 600 and the reversion Rs. 400. A is entitled to receive Rs. 600 out of the purchase-money, and B and C to receive Rs. 400.
Printing slip to note. In illustration (a) the copy consulted reads "for a quarter share of mauza." and the name of the second mauza is missing at the first mention; the name Lalpura appears only in the answer. The sense is clear from the answer, and the official text should be checked. The shares and places belong to the old text.
Present-day example. Ravi owns a lifetime right to live in and take rent from a building. His niece Kavita and nephew Dev hold the right to the building after Ravi's death. The three sell the building for Rs. 1,00,00,000. A valuer says Ravi's lifetime interest is worth 60 per cent and the later interest 40 per cent. Absent a contract to the contrary, Ravi shares in the price at 60 per cent and Kavita and Dev together at 40 per cent. How the valuation is made is not set out in the section.
Section 47: co-owners transferring a share without specifying whose
Section 47 applies where "several co-owners of immovable property transfer a share therein without specifying that the transfer is to take effect on any particular share or shares of the transferors". The transfer takes effect, as among the transferors:
- on their shares equally, where the shares were equal; and
- on their shares proportionately to the extent of those shares, where unequal.
The Act's illustration, retold
A, the owner of an eight-anna share, and B and C, each the owner of a four-anna share, in mauza Sultanpur, transfer a two-anna share in the mauza to D, without specifying from which of their several shares the transfer is made. To give effect to the transfer, a one-anna share is taken from A's share and half an anna from each of B's and C's shares.
Present-day example. Mohan owns 50 per cent of a plot, and Neeta and Om own 25 per cent each. Together they sell an 8 per cent share to Pankaj without saying whose share it comes from. Section 47 spreads the 8 per cent across their shares in proportion: 4 per cent from Mohan, and 2 per cent from each of Neeta and Om. The deed should say so directly to avoid argument.
A quick comparison
| Section | Question it answers | Basis of division |
|---|---|---|
| 45 | What share does each joint buyer hold? | Interests in the common fund, or proportion of the price each advanced; equal if no evidence |
| 46 | How do sellers with distinct interests share the price? | Equally if interests equal in value; proportionately to value if unequal |
| 47 | From whose shares does a joint sale of a share come? | Equally if shares equal; proportionately if unequal |
Drafting checklist
- Joint buyers: state each buyer's share in the deed and in a side agreement; record who paid how much and by what means.
- Joint sellers: state how the price is to be divided; if the interests differ, say how their values were fixed.
- Transfer of a part-share: say which co-owner's share the transfer comes from.
- Contrary contract: sections 45 and 46 apply "in the absence of a contract to the contrary", so a clear agreement overrides the default.
- Keep evidence of payments. Section 45 gives weight to the shares advanced, and presumes equal shares only where there is no evidence.
- Legal charges: stamp duty and registration charges are outside this Act; see our State-wise stamp duty and registration posts.
- Later dealings: if rights over the same property clash, see our article on sections 48 to 50.
Need help recording shares in a joint purchase or sale?
Unclear shares are a common cause of disputes among co-buyers and co-sellers. We can prepare or review the deed and any co-ownership agreement through agreement drafting.
Key takeaways
- Section 45: joint buyers' interests follow their interests in a common fund, or the proportion of the price each advanced; with no evidence, they are presumed equal.
- Section 46: joint sellers with distinct interests share the price equally if interests are equal in value, otherwise proportionately to value.
- Section 47: a transfer of a share without specifying whose shares it comes from takes effect equally or proportionately across the transferors' shares.
- Sections 45 and 46 give way to a contract to the contrary.
- Record each person's share and contribution in writing.
- Later amendments and State changes should be checked.
Read next
- Section 44: transfer by one co-owner and family dwelling-house
- Sections 48 to 50: priority of rights, insurance money and rent paid in good faith
- Sections 36 and 37: apportionment of rent and of obligations on severance
- Who Is Liable to Pay Stamp Duty -- Buyer or Seller
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.