Rights And Liabilities Of Buyer And Seller All Details

Rights and Liabilities of Buyer and Seller Under The Transfer of Property Act-

In the absence of a contract to the contrary, the buyer and seller of immovable property respectively are subject to the liabilities, and have the rights, mentioned in the rules next following, or such of them as are applicable to the property sold:

(1) The seller is bound-

(a) to disclose to the buyer any material defect in the title or ownership of the property which the seller has or deemed to under the law have knowledge thereof including which the buyer could not with ordinary care discover;

(b) to a great extent the seller has to act as a ‘caveat emptor’ and satisfy to the best of his information all the relevant questions and queries which the buyer may have in respect of the property or the title;

(c) to produce and allow to the buyer on his asking for examination of the all documents relating to the property which are in the seller’s possession or power inclusive and not limited to earlier sale deeds, deeds of conveyance, possession letters, revenue records etc;

(d) to execute a proper conveyance of the property on satisfaction of payment or tender of the amount due in respect of the price by the buyer for execution at a proper time and place;

(e) to maintain and take care of the property and all documents of title thereof which are in his possession as owner of reasonable prudence and also the documents between the date of contract of sale till its final transfer and delivery of the property to the buyer;

(f) to give possession of the property as its nature permits on demand to the buyer or such person as he directs when due under the contract of sale and demanded,

(g) to pay all due charges, taxes and rent etc in respect of the property up to the date of the sale and to make property clear of all encumbrances on the property then existing unless otherwise stated specifically in the contract for sale, and to pay the interest on all encumbrances on such property due on such date except provided and specifically agreed otherwise,

An omission to make such disclosures as mentioned above is fraudulent.

(2) The seller is entitled-

(a) to the rents and profits of the property till the date transfer of the property to buyer takes effect;

(b) to the balance of the amount of the purchase-money remaining unpaid together with the interest from the date on which possession has been delivered to the buyer or any person under his authority or the subsequent purchaser.

(3) The buyer is bound-

(a) to disclose to the seller any fact which materially increases the value of such interest as to the nature or extent of the seller’s interest in the property of which the buyer has knowledge and reason to believe that the seller is not aware, and;

(b) to pay or tender the purchase-money to the seller or such person as he directs, at the time and place specified in the contract for completing the sale,: except with the exception in cases where the property is under sale free from encumbrances, the buyer has right to set off thereof and may retain out of the purchase-money, the amount of any encumbrances on the property as on the date of the sale for the purpose of payment of the said amount to the persons entitled thereto;

(c) to bear any loss due to the destruction, injury or decrease in value of the property not attributable to or caused by the seller.

(d) to pay all debts, public charges and rents which have been agreed to be paid by the buyer and become payable in respect of the property. The buyer is also required to pay the amounts together with the interest due on any encumbrances which have been agreed to be paid by the buyer.

An omission to make such disclosures as mentioned above is fraudulent.

(6) The buyer is entitled-

(a) to the increase/ additions due to of any improvement in, or increase in value of, the property, and to the rents and profit thereof in cases where the ownership of the property has passed to him before the final transfer,;

(b) except of his own default for improperly declining to accept delivery of the property, to a charge on the property, as against the seller and all persons claiming under him, for any purchase-money and interest thereon properly paid by the buyer in anticipation of the delivery, to the extent of the seller’s interest in the property,; and, when the buyer legally and properly declines to accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to compel specific performance of the contract or to obtain a decree for its rescission.