PRESENTATION ON:
Rights And Duties Of Seller and Buyer Transfer of Property Act 1882
Prepaired by:
Prabhdeep Singh Grewal Law Student 4th Sem Roll no- 14/08
Acknowledgement
I take this opportunity to express our sincere gratitude to each and every person who has directly or indirect helped me through this project. My experience has been fulfilling and rewarding. I also extend our sincere thanks to Mrs.Vandna Bhanot, Faculty, University Institute Of Law , Ludhiana for giving us the opportunity to work on this topic and carry out our project work. It is our pleasure to express our sincere gratitude for her continuous support and guidance which helped us in accomplishing this project successfully. We thank her for providing her invaluable time, support, and co-operation to complete the project work.
RIGHTS AND DUTIES OF SELLER AND BUYER
The rights and duties of seller and buyer are subject to the contract. In the absence of any contract to the contrary, the rights and duties of seller and buyer are governed by section 55, Transfer of Property Act. The rights and duties of seller and buyer under the provisions of section 55 of Transfer of Property Act are as under:
Seller’s Duties * Before sale To disclose material defects in the property or title To produce the title-deeds for inspection To answer relevant questions as to title To execute conveyance To take care of the property and title deeds To pay the outgoings
* After sale To give possession to the buyer To covenant for title To deliver title deeds on receipt of the price
Seller’s Rights
*
Before sale
Entitled to all rents, profits or other benefits After sale Charge on property
*
Buyer’s Duties
Before Sale To disclose facts which materially increases the value of property? To pay the price After sale To bear the loss to the property To pay the outgoings
*
Buyer’s Rights
Before Sale Chare on property for price paid After sale Entitled to all benefits
DUTIES OF SELLER BEFORE SALE
(i) To disclose any material defect- The seller is bound to disclose to the buyer any material defect in the property or in the seller’s title thereto of which the seller is and the buyer is not aware, and which the buyer could not with ordinary care discover. A latent defect is a defect, which cannot be discovered by the buyer with ordinary diligence.
(ii) To produce documents of title- The seller is bound to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller’s possession or power.
(iii) To answer question about the property or the title thereto- The seller is bound to answer to the best of his information information all relevant questions put to him by the buyer in respect to the property or the title thereto.
(iv) To execute conveyance- The seller is bound on payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property, when the buyer tenders it to him for execution at a proper time and place. The seller is bound to execute conveyance on the payment of price by the buyer.
(v) To take care of the property and title documents- The vendor is bound between the date of the contract of sale and the delivery of the property, to take as much care of the property and all documents of title relating thereto, which which are in his possession as an owner of ordinary prudence would take of such property and documents.
(vi) To pay outgoings - The seller is bound to pay all public charges and rent accrued due in respect of the property upto the date of the sale, the interest on all encumbrances on such property due on such date, and, except where the property is sold subject to encumbrances to discharge all encumbrances on the property then existing.
AFTER SALE
(i) To deliver possession of the property - The seller is bound to give, on being so required, the buyer or such person as he directs, such possession of the property as its nature admits.
(ii) Implied covenant for title - The seller shall be deemed to c ontract with the buyer that the interest which the seller professes to transfer to the buyer subsists and that he has power to transfer the same.
(iii) To deliver title deeds on receipt of consideration- Where the whole of the purchase money has been paid to the seller, he is bound to deliver to the buyer all documents of title relating to the property which are in the seller’s possession or power;
SELLER’S RIGHTS BEFORE SALE
To take rents and profits - The seller is entitled to the rents and profits of the property till the ownership thereof passes to the buyer.
BUYER’S DUTIES BEFORE COMPLETION OF SALE
(i) To disclose fact which materially increases the value of property-The property-The buyer is bound to disclose to the seller any fact a s to the nature or extent of the seller’s interest in the property of which the buyer is aware, but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest.
(ii) To pay price for the property- The buyer is bound to pay or tender, at the time and place of completing the sale, the purchase money to the seller or such person as he directs; provided that, where the property is sold free from encumbrances, the buyer may retain, out of the purchase money, the amount of any encumbrances on the property existing at the date of the sale and shall pay the amount so retained to the persons entitled thereto.
(iii) To bear loss to the property- The buyer is bound to bear any loss arising from the destruction, destruction, injury or decrease in value of the property not caused by the seller where the ownership of the property has passed to the buyer.
(iv) To pay public charges and rents- Where the ownership of the property has passed to the buyer, as between himself and the seller, the buyer is bound to pay all public charges and rent which may become payable in respect of the property, the principal principal moneys due on any encumbrances subject to which the property is sold, and the interest thereon afterwards accruing due.
In spite of all these laws and rules, unfortunate and unexpected events happening cannot be ruled out. Buyer and seller meet with different assumptions and expectations. Sometime, the true facts are hidden for monetary gain. Because of these, problems arise, which sows the seeds of ill feeling among the seller and the buyer.
To avoid such unpleasant situations, it is essential that the parties through their learned and experienced advocates scrutinize all aspects of the transaction to their mutual satisfaction. After, finalizing the price, identification of the specific property to be transferred and other terms and conditions, an Agreement for sale, is signed by the parties, which has a vital role to play in deciding the rights and liabilities of the parties.
