The
transfer of property Act 1882 deals with the various kinds of transfer of
immovable property like sale, mortgage, lease, exchange etc. Section 55 of the
acts refers to the rights and obligations of the seller and purchaser of
immovable property.
The obligations of seller are:
1.To
disclose any material defect in the property of sellers 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.
6.To give
possession of the property.
7.To pay
all taxes, charges, rents upto date and discharge any encumbrance on property.
The seller has some rights; they
are:
1.To receive the rents and profits of the
property till the ownership passes on to the purchaser.
2.Where
the ownership has passed on to the purchaser before payment of full
consideration, the seller will have a charge on the property for the amount of
purchase money and interest on such amounts.
The 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.The
ownership has passed on to the purchaser, to bear the loss on account of
destruction, inflery 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 uncleared 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 property Act 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
revail, 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 is 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 practised
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 protection of law for any mischief played on him.
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