Rights and liabilities:- In any contract for sale or purchase of property, both the buyer and the seller have certain rights and corresponding liabilities to each other. The law also establishes such rights in the rule book. The main provisions that relate to this aspect are covered under the Transfer of Property Act. According to the act, in the absence of a contract to the contrary, a seller of property has certain rights and is subject to some liabilities.

Disclose all information to the buyer :- A seller is bound to disclose all information related to the property to the buyer. He is bound to inform any material defect in the property or in his own title which the buyer is not aware of, or which the buyer cannot discover with ordinary care.

Seller should handover all documents :-The seller should give the buyer all documents of title relating to the property which are in the seller’s possession or power. After the buyer has paid the amount due, the seller should execute a proper conveyance of the property in favour of the buyer for execution at a proper time and place. Further, between the date of the contract of sale and the handing over of the property, the seller should take as much care of the property and all documents of title relating to it which are in his possession as an owner of ordinary prudence would take.

Possession of the property :- The seller is bound to give the buyer or any person as he directs possession of the property. Till the date of sale of the property, the seller is bound to pay all public charges and rent due in respect of the property as well as the interest on all encumbrances on the property. The buyer has a right to assume the seller has interest in the property and that he has the power to transfer it. In case the sale is made by a person in a fiduciary capacity, the buyer has a right to assume the seller has done no act whereby the property is either encumbered or he is hindered from transferring it.

Documents of title :- After the money has been paid by the buyer to the seller, the seller is bound to deliver all documents of title relating to the property which are in his possession or power. However, there are two exceptions to this rule. Where the seller retains any part of the property comprised in the documents, he is entitled to retain the documents. And where the property is sold to different buyers, the buyer of the part of greatest value is entitled to the documents.

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0 Comments

  1. Dharmender Kumar Saini says:

    sir
    I am booking of two rooms set flat in piyus city, bhiwadi.
    they are new service tax charge (2.575%) taken by us on booking amount.
    plz. guide me this is wrong/right.

  2. R.LGARG says:

    Some Builders are constructing flats or floors which are not as per the building plans sanctioned by the concerned authority and they do not possess any completion certificate because of the reasons well known to them i.e unauthorised construction evev beyond the limits of the plots on which it is built, the Electricity and Water connections are also obtained by palming the authorities. such innocent buyers of these flats or floors land themselves in difficulities when sealin or demolishing by the authprities is activated.consider for their safety and provide necessary guidelines .

  3. Mahesh Desai says:

    I have a property which is in the name of My wife, My daughter and myself. The agreement date of contract is 22.04.2007. The property is located in Borivali, Mumbai. Now I want to sell this property. Please guide me in this matter the IT and other points which I should take care of.

  4. v swaminathan says:

    This write-up fairly sets out some of the important aspects which should be of interest to both seller and buyer of an ‘immovable property’, the sale/transfer whereof is governed by the ancient Transfer of Property Act. In today’s context, however, it is the law of a recent origin , governing sale and purchase of a part of an immovable property, being units of a building – commonly known as ‘Flats’ or ‘Apartments’, which has assumed greater significance. That is the segment which calls for dissemination of useful information and needs valuable but proper guidance to everyone concerned- that is, not only confined to the two parties namely, the seller and buyer but also all others connected, including the statutory authorities and the legal advisers.

    As is the common perception, the special enactments embodying the law governing such ‘units’ of an immovable property, albeit in force in many of the States for quite long, have by and large continued to be accorded a step motherly treatment. These special enactments have been on the statute book for decades now, but pathetically remained to be implemented or enforced in all seriousness as warranted. It is the implementation or enforcement of any such law, which really matters. Nonetheless, there has been a widely observed negligence of a contributory nature, for which the others – the sellers, buyers and their respective advising lawyers and other professionals also deserve to be blamed / faulted.

    vswaminathan

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