Friday, 25 July 2014

RIGHTS AND OBLIGATIONS IN PROPERTY DEALINGS


The Transfer of Property Act 1882 deals with varied sorts of transfer of unmovable property, that interalia includes sale, mortgage, lease, exchange. In sale of an immovable property there are typically 2 parties to the dealings i.e. the Seller/Vendor and therefore the Buyer/Purchaser.Section55 of the Act refers to the rights and obligations of the vendor and vendee of an unmovable property.

The obligations of the vendor are:
1.To disclose all material defects within the property and therefore the title to the customer.
2.To produce the documents of title for the verifications of the customer on his request.
3.To answer all relevant queries of the customer.
4.To execute correct conveyance deed on full payment of thought.
5.To take care of the property and therefore the documents throughout the amount between the agreement to sell and returning possession of the property when execution and registration of Deed of Sale.
6.To give possession of the property.
7.To pay all taxes, charges, rents up to now and discharge any encumbrance on property before the conveyance of the property.

Rights of the seller:
1.To receive rents and profits of the property until its possession completely passes on to the vendee.
2.Where the possession has passed on to the vendee before payment of full sale thought, the vendor can have a charge on the property for the number of purchase cash and interest on such amounts.

The obligations of the customer are:
1.To inform the vendor any truth this might increase the worth.
2.To pay thought quantity to the vendor as in agreement to.
3.Where the possession is passed on to the vendee, involved the loss on account of destruction, or decrease within the price of the property not caused by the vendor.
4.To pay all taxes, charges, rents etc.where the possession is passed on to him.
5.The vendee could retain the number of any uncleared encumbrance, out of thought quantity owed.

The vendee is entitled to the subsequent rights:
1.Where the possession is passed on to the vendee the good thing about any improvement, increase within the price of the property, rents, profits.
2.A charge on the property as against vender and every one alternative persons claiming below him for the amounts paid by the vendee beside interest.

The higher than referred rights and obligations of each the vendor and vendee area unit binding on each. But, section55 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 within the Act, the shrunken obligations and rights prevail to it extent.

The obligations and rights have relevance solely wherever there's a legitimate binding contract of sale between the parties. Just in case the vendee of property declines to just accept possession of the property, he has charge on the property with relevance earnest paid and any prices awarded to him in an exceedingly suit.

The rights of the vendee area unit subject to sure limitations.These rights area unit applicable as long because the matter is within the stage of agreement and once the deal is finalized, conveyance deed is executed; the deal can come back to finish. However the case is completely different wherever the conveyance is brought on account of fraud practiced by the seller.

It is additionally necessary that the vendee shall avail himself of data or means that of data hospitable him or his agents to verify the credentials of the seller, his interest, and title to the property. He should exercise charge and diligence by workout due care and so solely the vendee claim the protection of law for any mischief played on him.

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