RIGHTS &OBLIGATIONS OF SELLER & BUYER
The Transfer of Property Act, 1882, deals with various kinds
of transfer of immovable property which inter-alia includes sale, mortgage,
lease, exchange. In sale of an immovable property there are generally two
parties to the 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.
1. To disclose
all material defects in the property and the 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 consideration.
5. To
take care of the property and the documents during the period between the
agreement to sell and handing over 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 up to date and discharge any encumbrance on property
prior to the conveyance of the property.
1. To receive
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.
1. To inform the
seller any fact this may increase the value.
2. To pay
consideration amount to the seller as agreed to.
3. Where the
ownership is passed on to the purchaser, to bear the loss on account of
destruction, or decrease in the value of the property not caused by the seller.
4. To pay all
taxes, charges, rents etc. where the ownership is passed on to him.
5. The purchaser
may retain the amount of any un-cleared encumbrance, out of consideration
amount payable.
6. The
Purchaser is authorized to deduct the TDS (Tax Deducted at Source) at
appropriate rates from the Sale consideration and remit the same into the
account of Income Tax Department through the designated Banks if the sale
consideration exceeds the prescribed limits.
7. The Purchaser
can pay the balance Sale consideration amount to the Seller and the same has to
be reflected in the Sale Deed.
1. Where the
ownership is passed on to the purchaser the benefit of any improvement,
increase in the value of the property, rents, profits.
2. A charge on
the property as against seller and all other persons claiming under him for the
amounts paid by the purchaser along with interest.
The above referred rights and obligations of both the seller
and purchaser are binding on both. But, section 55 of Transfer of Property Act
provides an exception. 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.
In case the purchaser of property declines to accept
possession of the property, he has charge on the property with regard to
earnest money paid and any costs awarded to him in 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, and title to the property. He has to
exercise due care and diligence by exercising reasonable care and then only the
purchaser can claim the protection of law for any mischief played on him.
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