What is Immovable Property? Types and Legal Rights

You’ve heard of the phrase ” immovable property. An asset that cannot transfer from one spot to another is considered immovable property. The immovable property comes with rights of ownership associated with it. The TDS on immovable property is also applicable at the rate in effect. This is a detailed explanation of what immovable property is. What are the main differences between immovable and moveable properties, the different kinds of immovable property, and the legal rights that come with immovable property? let’s see in this blog What is Immovable Property? Types and Legal Rights.

What are Immovable Property and Movable Property?

Immovable property is generally known as real estate, which could be a residential home, warehouse manufacturing unit, or factory. The trees or plants affixed to the ground are often considered immovable. However, they are subject to the laws of the land and taxation. In this, we will see What is Immovable Property? Types and Legal Rights.

The term movable property describes essential items that can be moved, such as computers, jewelry, watches, and even money. The term “movable property” has been included in Section 12(36) of the General Clause Act 1847 and the transfer of Property Act 1982.

Article 22 (section 22) of the Indian Penal Code (IPC) defines corporeal property as movable, except the land and other things permanently anchored to the earth.

Immovable Property: Different Types

The multiple types of immovable properties prevalent in the real estate context have been discussed below –

1. Land

There are two definitions of land: submerged by water or a vertical column over the ground or underground ground below the earth’s surface. All of these items, which are naturally occurring, are found on or under the surface of the earth and are considered “land.”
Furthermore, all the objects erected by humans or in the ground hoping for permanent annexation are referred to as immovable property, such as a wall, buildings, or fences.

2. Benefits that arise from the land

In addition to the perspective of physical land, each benefit derived from the land is considered immovable property. This includes the Registration Act covering immovable property benefits, such as hereditary allowances, fishing, and ferries. In the same way, a right to collect rent and profits from immovable properties, as well as the right to take dues from the market of a specific parcel of land, is also considered immovable property.

3. Things attached to the earth

Section 3 of the Transfer of Property Act majorly defines the expression ‘attached to earth’ as including:

Things that are rooted in the earth. Things rooted in the earth include plants and trees, grasses, standing timber, and other crops. The extent to which trees or shrubs are considered unmovable depends on the specific circumstances.
If the goal is to ensure that trees will continue to enjoy the benefit of nutrition or sustenance, they should be by enjoining their fruit. This kind of plant is regarded as an immovable asset; however, if one’s intention is to eliminate them once they use wood to construct a building or any other industrial use, it would be considered lumber and property that can be moved.
The things that can be embedded into the earth. The things embedded into the earth are homes, buildings, and so on. However, items like an anchor embedded in the earth to hold the ship are not immovable property. It is the only way to determine whether these things are immovable or moveable, depending on the circumstances.
Things attached to what’s inseparably buried – The benefit of the objects attached to the land, such as doors and windows, are also immovable and permanent properties. In the same way, window blinds and electric fans are categorized as movable.
Chattel tied to the earth or building – The crops, grasses that are growing, and the standing trees are moveable properties. The standing timber and the growing crops are transferable to purchasers if you sell the property.

Difference Between an Immovable and Movable Property

The differences between immovable and movable properties are as follows:

Parameter	Movable property	Immovable property
Examples and instances	Watches, jewelry, money, computers, etc.	Real estate like a factory, house, warehouse, manufacturing plant, hereditary allowances, etc., are counted under an immovable property.
Registration	Not required	Should be registered under the Registration Act, 1908, in case its value exceeds Rs. 100.
Inheritance	It can easily be partitioned	This is not divisible or breakable so easily
Transfer	It can easily be transferred	Cannot be transferred without a will, partition, or gift deed
When used as a security	Pledge	Lien/Mortgage

Rights Associated with Immovable Property

If a person owns the immovable property, she/he has the following rights. These include:

Right of collecting rent – A property owner can legally collect rent by renting or leasing the property.

Right to collect dues – In case the property has been let out so that another party/person can cultivate this or use this through his/her service, the immovable property’s owner has the right to collect the dues.

Right of the ferry – This refers to the authority’s right to maintain a vessel upon a water body to transport people and vehicles across the same in exchange for payment. A ferry can also be a continuation of a highway from one side of any water body to another.

Right of way – A particular land may either be public or private, and trespassing on the same may be an offense legally.

Right of the fishery – There can be access rights to fish in a certain water body or access to one factory, and this would be restricted to only the immovable property’s owner.

Gift of Immovable Property

Gifts of immovable property may be taxable under the Income Tax Act of 1961. What should I do? Let’s look deeper into the details of gifts of immovable property and their tax implications.

Let’s have a look Here is What is Immovable Property? Types and Legal Rights.

Gift Type	Scenario	Payable Tax Amount
Without Consideration: Any building, tree, land, etc., that falls under immovable property	Stamp Duty Value of Property more than Rs 50,000	Is the same as the stamp duty value of the property.
With Consideration: Any building, tree, land, etc., that falls under immovable property	The stamp Duty Value of the Property is greater than the consideration by more than Rs. 50,000	Stamp duty value of property subtracted by the consideration amount

Exemptions of Gift of Immovable Property

There are a few exemptions on the gift of immovable property. These include

Gift of immovable property from father to son
Gift of immovable property to brother
Gift of immovable property to a relative.

Summing Up: Immovable Property

We hope you’ve got all the details on the immovable property. Immovable properties are highly sought-after investments favored by investors with an investment horizon that spans the long term. Because it is not depreciating, it is regarded as an investment option that will last forever. Knowing its definition of rights, types, and definitions is vital to owning or giving it away. Contact the lawyer of your choice or an attorney for more information.

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