ApportionmentCentral

Section 36 of The Transfer of Property Act, 1882

Apportionment of periodical payments on determination of interest of person entitled.

In the absence of a contract or local usage to the contrary, all rents annuities, pensions, dividends and other periodical payments in the nature of income shall, upon the transfer of the interest of the person entitled to receive such payments, be deemed, as between the transferor and the transferee, to accrue due from day to day, and to be apportion able accordingly, but to be payable on the days appointed for the payment thereof.

Summary

This section regulates how periodical payments like rents, annuities, pensions, and dividends are divided when a property owner transfers their interest to another person.
In the absence of an express contract or local usage to the contrary, these payments are deemed to accrue from day to day between the buyer and seller.
The income is apportioned proportionally based on the number of days each party held the property interest during the payment period.
Although the income accumulates daily, it only becomes payable on the scheduled days appointed for such payments.
This rule provides a fair, time-based split of ongoing income streams during property transfers.

Practical examples

1Ramesh leases his house to Suresh for a monthly rent of three thousand rupees, payable on the last day of every calendar month. On the fifteenth day of June, Ramesh sells the house to Dinesh. Under the property law, the rent for June is deemed to accrue from day to day. Ramesh is entitled to fifteen hundred rupees (for the first fifteen days), and Dinesh is entitled to fifteen hundred rupees (for the remaining fifteen days). Suresh will pay the full three thousand rupees on the last day of June, which is then divided.

2Kavita is entitled to a yearly annuity of twelve thousand rupees, payable on the thirty-first day of December every year. On the thirtieth day of June, Kavita transfers her right to receive this annuity to Amit. Under the law, the annuity accrues daily. Kavita is entitled to six thousand rupees for the first half of the year, and Amit is entitled to six thousand rupees for the second half, with the entire amount being paid on the scheduled date of December thirty-first.

FAQ

1. What does Section 36 of the Transfer of Property Act, 1882 say about the apportionment of rent?

Under Section 36 of the Transfer of Property Act, 1882, in the absence of a contract or local usage to the contrary, rent is deemed to accrue from day to day between the transferor and transferee, and is divided proportionally based on how long each held the interest.

2. When are apportioned periodical payments actually paid under Section 36 of the Transfer of Property Act, 1882?

Under Section 36 of the Transfer of Property Act, 1882, even though payments are calculated as accruing day by day, they are only payable on the specific days appointed for their payment.

3. Does Section 36 of the Transfer of Property Act, 1882 apply if there is an existing agreement between the buyer and seller?

No, Section 36 of the Transfer of Property Act, 1882 applies only in the absence of a contract or local usage to the contrary between the transferor and the transferee.

Test yourself

Q1.Under Section 36 of The Transfer of Property Act, 1882, how do rents, annuities, pensions, and dividends accrue as between the transferor and the transferee?

Q2.Under Section 36 of The Transfer of Property Act, 1882, if a property is transferred midway through a rent cycle, when does the apportioned share of rent become payable to the transferor?

Q3.Under Section 36 of The Transfer of Property Act, 1882, which of the following is NOT listed as a periodical payment subject to the day-to-day accrual rule?

Q4.Under Section 36 of The Transfer of Property Act, 1882, under what circumstances can the day-to-day apportionment of rent be bypassed?

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