Who is an 'Ostensible Owner'? Under what circumstances a transfer of immovable property...is binding....

Question: Who is an 'Ostensible Owner'? Under what circumstances a transfer of immovable property by an Ostensible Owner is binding on the real owner. [OJS 2019]

Find the answer to the mains question of Property Law only on Legal Bites. [Who is an 'Ostensible Owner'? Under what circumstances a transfer of immovable property by an Ostensible Owner is binding on the real owner.]

Answer

When is the Transfer Binding?

A transfer by an ostensible owner is binding on the real owner if the following conditions are met:

1. Ostensible ownership – The transferor appears to be the owner.
2. Consent of the real owner – The true owner has allowed the ostensible owner to appear as such.
3. Transfer for consideration – The buyer pays valuable consideration (not a gift).
4. Reasonable care – The transferee has verified the ownership with due diligence.
5. Good faith – The transferee acts honestly without knowledge of the defect in title.

In Ramcoomar Koondoo v. John and Maria McQueen, (1873) 11 BengLR 46, it was held that if someone buys property from a person who appears to be the owner, and has acted in good faith, the real owner cannot later claim the property unless the buyer had notice of the true title.

A transfer by an ostensible owner is valid and binding on the real owner if the buyer has acted in good faith, with reasonable care, and the transfer is for consideration with the real owner’s consent.