Section 25: interpretation

Introduction

For house-property income, registered title is not the only route to being treated as an owner. Section 25 extends ownership to specified transfer, possession and long-term-right arrangements.

Key takeaways

Who is deemed to be the "owner"

For the purposes of sections 20 to 24, "owner" includes:

• An individual who transfers property without adequate consideration to their spouse (except under an agreement to live apart) or to a minor child (other than a married daughter)
• The holder of an impartible estate, deemed to be the individual owner of all properties comprised in the estate
• A member of a co-operative society, company or other association of persons to whom a building (or part of it) is allotted or leased under a house-building scheme of that society/company/association
• A person allowed to take or retain possession of a building (or part of it) in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882
• A person who acquires certain rights in a building (other than a month-to-month or up-to-one-year lease) through sale, exchange, or a long lease (12 years or more, original or extendible), or through certain co-operative society/company membership-type transactions that have the effect of enabling enjoyment of the property

Look beyond the title deed

Review who transferred or enjoys the property and on what terms. The deeming rules can attribute ownership to a person other than the apparent title-holder for Sections 20–24.

A transfer to a spouse or minor child without adequate consideration, and certain long-term possession or lease rights, require separate examination under the relevant clauses.

Carry the result into computation

Once a person is treated as owner, apply Sections 20–24 to that person's property income rather than stopping at the land register.

Keep the agreement and consideration evidence because small differences in transaction form change which deeming clause, if any, applies.

Step-by-step flow for applying Section 25

1. 1

   Is the person the legal owner of the property?

   • Yes: Owner for Sections 20 to 24.
   • No: Check the deemed-owner categories.
2. 2

   Did the person transfer it without adequate consideration to a spouse (not under an agreement to live apart) or a minor child (other than a married daughter)?

   • Yes: Transferor is deemed owner (clause (a)).
   • No: Go to the next step.
3. 3

   Is the person the holder of an impartible estate, or a member allotted or leased a building under a society, company or association house-building scheme?

   • Yes: Deemed owner (clauses (b) and (c)).
   • No: Go to the next step.
4. 4

   Does the person hold possession under part performance (section 53A of the Transfer of Property Act, 1882), or rights under a lease of not less than twelve years or a similar arrangement enabling enjoyment?

   Leases from month to month or for not more than one year are excluded.

   • Yes: Deemed owner (clauses (d) and (e)).
   • No: Not an owner under Section 25.

Practical checklist

Glossary

Deemed owner

A person treated by Section 25 as the owner for the house-property provisions despite ordinary title being elsewhere.

Adequate consideration

Value given for a transfer relevant to whether the specified family-transfer deeming rule applies.

Frequently asked questions