The transfer of Property Act 1882 deals with various kinds
of transfer of immovable property, which include sale, mortgage, lease,
exchange etc. In sale of an immovable property there are generally two parties
to the said transaction i.e. the Seller / Vendor and the Buyer / Purchaser.
Section 55 of the Act refers to the rights and obligations of the seller and
purchaser of an immovable property.
Obligations of the seller are:
1. To disclose any
material defect in the property of seller and title to the buyer.
2. To produce the documents of title for the verifications of
the buyer on his request.
3. To answer all relevant questions of the buyer.
4. To execute proper conveyance deed on full payment of the
consideration.
5. To take care of the property and the documents in the
period between agreement to sell and handing over the possession of the
property after execution and registration of Deed of sale.
6. To give possession of the property.
7. To pay all taxes, charges, rents upto date and discharge
any encumbrance on property prior to the conveyance of the property.
The seller has some rights; they are:
1. To receive the
rents and profits of the property till its ownership absolutely passes on to
the purchaser.
2. Where the ownership has passed on to the purchaser before
payment of full sale consideration, the seller will have a charge on the
property for the amount of purchase money and interest on such amounts.
Obligations of the buyer are:
1. To inform
the seller any fact which may increase the value?
2. To pay
the consideration amount to the seller as agreed.
3. Where the
ownership has passed on to the purchaser, to bear the loss on account of
destruction, increase or decrease in the value of the property not caused by
seller.
4. To pay all taxes, charges, rents etc. where the ownership
has passed.
5. The purchaser may retain the amount of any un-cleared
encumbrance, out of consideration amount payable.
The purchaser is entitled to the following rights:
1. Where the ownership has passed on to the purchaser any
benefit of any improvement increase in the value of the property, rents,
profits.
2. A charge on the property as against seller and all
persons claiming under him for the amounts paid by the purchaser with interest.
The above referred rights and obligations of both the seller
and purchaser are binding on both. But the section 55 of Transfer of PropertyAct provides an exemption. If the parties to the deal have any contract
contrary to the rights and obligations as envisaged in the Act, the contracted
obligations and rights prevail to that extent.
The obligations and rights have relevance only where there
is a valid binding contract of sale between the parties.
Incase, the purchaser of property declines to accept the
possession of the property, he has charge on the property with regard to
earnest money paid and any costs awarded to him of a suit.
The rights of the purchaser are subject to certain
limitations. These rights are applicable as long as the matter is in the stage
of agreement and when the deal is finalized, conveyance deed is executed; the
deal will come to an end.
But the case is different where the conveyance is brought on
account of fraud practiced by the vendor.
It is also necessary that the purchaser shall avail himself
of knowledge or means of knowledge open to him or his agents to verify the
credentials of the vendor, his interest, title to the property. He has to
exercise due care and diligence by exercising reasonable care and then only the
purchaser can claim the protections of law for any mischief played on him.
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