Muslim Inheritance: Agreement to Sell Property Rights

❓ Question

If a deceased Muslim man only had an "agreement to sell" for his property but no final registered sale deed at the time of his death, does that property form part of his inheritance, or is it excluded?

✅ Answer

Yes, the property forms part of the inheritance.

The Supreme Court has affirmed that a mere "agreement to sell" does not transfer ownership. Until a registered sale deed is executed, the property fully belongs to the seller. Upon the seller's death, it becomes part of his estate (matruka property) and must be distributed according to Muslim inheritance law, not according to the unfinished sale agreement.

⚖️ Understanding the Legal Principles

[1] An "Agreement to Sell" is a Promise, Not a Transfer of Ownership

The Court reaffirmed a fundamental principle of property law: signing an agreement to sell does not mean the buyer becomes the owner.

The Legal Doctrine: Section 54 of the Transfer of Property Act, 1882, clearly states that a contract of sale (an agreement to sell) does not, by itself, create any interest in or charge over the property.
The Crucial Distinction: An "agreement to sell" is a promise to transfer ownership in the future. The actual transfer of ownership happens only upon the execution of a formal, stamped, and registered "sale deed."
Why This Matters: This protects both parties. The seller remains the legal owner until paid in full and the deed is signed. The buyer's right is primarily to sue for performance of the contract if the seller backs out, but they do not automatically own the property.

[2] "Matruka" Property is Simply What is Left Behind by the Deceased

The Court simplified the term "matruka," which is central to Muslim inheritance.

Plain Meaning: Matruka is simply the estate of a deceased Muslim—all property, movable and immovable, that they owned at the moment of death.
No Automatic Exclusions: Properties that are subject to an unfinished agreement to sell are not automatically removed from the matruka estate. They remain the deceased's assets.
The Key Takeaway: For inheritance to begin, one must first identify everything the deceased owned at the time of death. Unfulfilled contracts do not diminish the estate.

[3] Inheritance Under Muslim Law Follows a Strict Hierarchical Order

The distribution of the matruka property is not discretionary; it follows a clear, rule-based system.

Step 1: Debts and Legacies. The first claim on the estate is for the payment of funeral expenses, the deceased's debts, and any valid will (bequest). A bequest to a non-heir is valid only up to one-third of the total estate.
Step 2: The Prescribed Shares (Sharers). After Step 1, specific heirs with fixed shares are allotted their portion. The wife is a "sharer."
The Wife's Share is Contextual: 1/4 of the estate if her husband dies without any children or grandchildren. 1/8 of the estate if there are children or grandchildren.
Step 3: The Residue (Residuaries). Whatever remains after giving the sharers their fixed portions is distributed among the residuaries (typically male agnates like brothers, fathers, sons).
Why This Matters: This mathematical system leaves little room for ambiguity or subjective family arrangements. The law dictates the share each eligible heir must receive.

[4] You Cannot Sell What You Do Not Own

The Court applied the legal maxim "nemo dat quod non habet" (no one can give what they do not have).

The Application: In this case, the widow (Zoharbee) executed a sale deed for the entire property after her husband's death. However, as per inheritance law, she had inherited only a 1/4 share as the wife (since there were no children). The remaining 3/4 share belonged to her brother-in-law (the plaintiff).
The Legal Consequence: Therefore, she had the legal right to sell only her 1/4 share. She could not legally transfer the 3/4 share that belonged to another heir. A sale deed that purports to sell more than one's legal share is invalid for the excess portion.

🧭 Your Action Plan: Navigating Inheritance and Property Disputes

👤 If You Are an Heir to a Muslim Estate

1

Identify the True "Matruka" Property

Create a Comprehensive List: List all assets—bank accounts, real estate, vehicles, jewelry—owned by the deceased at the exact moment of death.

Do Not Exclude Unfinished Transactions: Include any property that was under negotiation, agreement to sell, or promised to someone. Until a registered sale deed is completed, it remains part of the estate.

Gather Documents: Collect title deeds, bank statements, and any contracts like "agreements to sell."

2

Calculate Shares According to the Law

Determine the Heirs: Identify all legal heirs who qualify as "sharers" and "residuaries" under Muslim law.

Apply the Rules Strictly: Calculate each heir's share based on the presence or absence of children. Using a qualified expert or lawyer for this calculation is highly recommended to avoid error.

Separate Bequests and Debts: Remember to account for valid wills (up to one-third) and clear all debts before distributing the balance to heirs.

🏠 If You Are Involved in a Property Transaction

1

Understand the Critical Difference Between an "Agreement" and a "Sale"

For Sellers: Know that you remain the full owner until the sale deed is registered. The property will form part of your estate if you pass away before completion.

For Buyers: An "agreement to sell" gives you a right to sue for the property, but it does not make you the owner. Insist on a prompt execution of the registered sale deed to secure your ownership.

2

Verify the Seller's Legal Capacity to Sell

Inheritance Property: If you are buying from an heir, verify through legal documents (succession certificate, probate, or family settlement agreements) that the seller has the legal right to sell the specific share they are offering.

Beware of Co-ownership: If multiple heirs exist, ensure the sale deed is executed by all co-owners or that the seller has the legal authority to represent them all.

📘 Key Legal Terms Explained

                    🏛️ Property and Inheritance Law Terms
                    Agreement to Sell: A contract where a seller promises to transfer a property to a buyer at a future date for a price. It does not transfer ownership.
Sale Deed: The final legal document that, upon registration, transfers ownership of the property from the seller to the buyer.
Matruka Property: The entire estate (all assets and liabilities) left behind by a deceased Muslim.
Nemo dat quod non habet: A fundamental legal principle meaning "no one can transfer a better title than they themselves possess."
Sharers: Specific heirs under Muslim law who receive fixed portions of the inheritance.
Residuaries: Heirs who receive the remaining property after sharers get their fixed shares.

                

🧠 Core Takeaway from the Supreme Court

"The intention to sell, documented in an agreement, does not alter the legal reality of ownership. Upon death, all property owned by the deceased crystallizes into his matruka estate. Its distribution is then governed not by unfinished business, but by the precise and unwavering rules of inheritance law, ensuring each heir receives their ordained share."

This judgment underscores the importance of legal formalities in property transactions and the non-negotiable nature of inheritance laws. It protects the rights of all legal heirs by ensuring the estate is distributed according to a clear legal framework, rather than being diminished by incomplete transactions.

Muslim Inheritance: Agreement to Sell Doesn't Transfer Property Rights