Ostensible Owner - Transfer of Property Act 1882

Ostensible Owner

Section 41 of the Transfer of Property Act 1882 defines as - Where, with the consent, express or implied, of the persons interested in immoveable property, a person is the ostensible owner of such property.

Ostensible Owner as the one who has possession of the property and also may have his name on the records, but is not real owner of the property.

Such situation may arise when property is acquired in others name, the the property is Benami. The Benamidar in whose name the property is purchased is the Ostensible Owner. This may also arise due to willful neglect of the real owner.

Essential requirements for a valid transfer by an Ostensible Owner

1. The transferor must be an Ostensible Owner

2. There must be express or implied consent of the real owner

3. There must be a consideration for the transfer. The ostensible owner can not transfer the property without any consideration to the transferee.

4. And most importantly, the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith. 

If all of these requirements are fulfilled, the transfer by the ostensible owner is valid and the rights of the transferee is protected.