Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised. And it is essential that there must be atleast 2 parties to execute a sale one is buyer & other is seller and in the execution of sale there are certain
1. The Liabilities of seller before completion of the sale are:
Seller Is Bound
(a).To disclose material defect in the property or in the seller's title thereto which the buyer in ordinary care could not discover ie latent defects for examples defect in title, an underground drain are latent defects and if the buyer does not know of its existence the seller is duty bound to inform him its existence.
(b).To produce title deeds which are under seller's possession relating to immovable property contracted to be sold for the inspection of the buyer in order that buyer could satisfy himself as to title.
(c). To answer all relevant questions asked to him by the buyer in respect of the property or title.
(d).To execute conveyance which means the transfer of ownership to buyer when buyer makes payment to seller.It must be at proper time and place and when seller cause delay in executing conveyance the proper way is to give notice making time the essence of contract.
(e).To take care of property between the date of contract and the delivery of the property to the buyer.The seller is sometimes said to be the trustee for the buyer his duties are therefore analogous to those imposed upon the trustee by Section 15 of Indian Trust Act. If the seller neglects his duty the buyer is entitled to compensation in the event of any loss or damage to the property.
(f).To pay outgoing payments [Sec 55(1)(g)].- The last duty of the seller is to pay public charges which includes govt.revenue,municipal taxes and rent etc up to the date of the completion of sale.The seller is also under a duty to discharge all encumbrances i.e, all charges against the property at the date of sale.
2.Liabilities of the seller after completion of sale are :
Seller Is Bound
(a).To give possession immediately on the execution of the sale deed to the buyer [Sec 55(1)(f)].The non payment of the purchase-money doesn't prevent the ownership from passing from the vendor to the purchaser and the latter notwithstanding such non payment may bring suit for possession.It has been held that the right of the purchaser to obtain possession and the right of the vendor to realise the unpaid balance of the purchase money may be enforced in the same action.The High Court of Calcutta and Allahabad have held that if the buyer sues for possession,he may be required to deposit the balance in court within the reasonable time specified, failing which his suit will be dismissed. On the other hand the Madras High Court has held that the purchaser is entitled to possession and cannot be put to payment of price.
(b).To convenant for title impliedly[Sec 55(2)] that the interest which the seller professes to transfer to the buyer subsists and that he has the power to transfer the same. Such a convenant is implied in every sale of immovable property and not required to be expressly mentioned in a sale deed.
(c).To deliver title-deeds to purchaser when whole of the purchaser money has been paid to the seller, he is bound to deliver to the buyer all the documents of title relating to the property which are in the seller's possession or power.After the completion of sale when the ownership passes on to the buyer the seller becomes bound to deliver all the title deeds relating to that property to the buyer which are in his possession.
Where whole of such property is sold to different buyers, the buyer who paid greatest value is entitled to such documents.[Sec55(3)]
1.Seller's Right before sale:-
According to Section 55(4)(a) the seller is entitled to the rent and profits of the property till the ownership of that property is passed to the buyer Till the ownership is transferred seller continues to be owner of the property and in that capacity,he is entitled to the rents and profits of the property.Till that time seller has right to enjoy profits of that property.
2.Seller's right after sale:-
Section55(4)(b)lays down a very important rule that if the sale is completed by conveyance but the price or any part of it is unpaid,the seller aquires a charge on the property for the unpaid price.if the vendor has already delivered possession of the property to the purchaser before the payment of the price he is not entitled to recover possession on the ground of non payment of the price.His only remedy is to enforce his charge against the property against the unpaid payments.
1.Buyer Liabilities Before Completion of Sale:
(a).To Disclose facts materially increasing the value of the property [55(5)(a)]:- The buyer is bound to disclose to the seller any fact as to the nature or extent of the seller's interest in the property of which buyer is aware but of which he has the reason to believe that the seller is not aware and which materially increase the value of such interest.
In Summer v Griffith, an old lady of eighty eight contracted to sell a property at much less price believing that her right in the property were not absolute. The buyer had knowledge of the fact that the lady's interest in the property was perfect and absolute but he did not disclose it to the lady. He was held liable for fraud and sale deed was set aside.
(b).To pay the price[55(5)(b)]:- Buyer is bound to pay or tender at the time and place of completing the sale, the purchase money to the seller or to such person as he directs provided that where the property is sold for free from encumbrances, buyer may retain out of the purchase money the amount of any encumbrances existing at the date of sale and shall pay the amount so retained to the person entitled thereto.
2.Buyer's Liability after Completion of Sale:-
(a).To bear loss to the property :- The ownership ordinarily passes to the buyer on execution of sale deed and if any loss occurs to the property either by way of accidental destruction or deterioration it must be borne by the buyer.[Sec55(5)(c)]
(b).To pay the outgoings:-Under Section 55(1)(g) the seller pays charges and taxes which have accrued(periodically accumulated) due upto date of the sale but after the completion of sale the Buyer becomes the owner of the property and he becomes liable to pay the outgoings For Example:- Govt. dues, taxes,revenue,etc.
1.Buyer's right before completion of sale:-
To Charge for price prepaid[sec55(6)(b)].Here 2 conditions prevails as following:-
(a).when the buyer properly declines to accept the delivery , he becomes entitled to refund of earnest(if any) and for the costs(if any) also awarded to him in suit to compel specific performance of the contract or to obtain a decree for its recession.
(b).when the buyer improperly declines to accept delivery:- The charge would be created against the seller to extend of the seller's interest in the property,for the amount of any purchase money properly paid by the buyer in anticipation of delivery and for interest on such amount.
2.Buyer's right after completion of sale:-Finally when the buyer becomes the owner of property he is entitled to the increase in value of the property and to the rents and profits arising out of the property.
Conclusion:-
Section 55 of Transfer Of Property Act,1882 tells about various rights and liabilities of both buyer and seller.so therefore ,its the duty of both to know their rights and take due care in fulfilling their liabilities towards each other. So that no further dispute shall arise in future.
Published By=》
Ritik Nagpal
2nd Yr B.A. LL.B.(Hons)
C.R.Law College,Hisar(Haryana)
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