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.
To disclose any material defect in the property of Seller and
title to the Buyer.
To produce the documents of title for the verifications of
the Buyer on his request.
To answer all relevant questions of the Buyer.
To execute proper conveyance deed on full payment of the
consideration.
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.
To give possession of the property.
To pay all taxes, charges, rents upto date and discharge any
encumbrance on property prior to the conveyance of the property.
To receive the rents and profits of the property till its
ownership absolutely passes on to the Purchaser.
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.
To inform the Seller any fact, this may increase the value.
To pay the consideration amount to the Seller as agreed.
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.
To pay all taxes, charges, rents etc., where the ownership
has passed.
The Purchaser may retain the amount of any un-cleared
encumbrance, out of consideration amount payable.
Where the ownership has passed on to the Purchaser any
benefit of any improvement increase in the value of the property, rents,
profits.
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
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 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 finalised, 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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