|
RIGHTS AND
DUTIES OF SELLER AND BUYER
The rights and duties of seller and buyer are
subject to the contract. In the absence of any
contract to the contrary, the rights and duties
of seller and buyer are governed by section 55,
Transfer of Property Act. The rights and duties
of seller and buyer under the provisions of
section 55 of Transfer of Property Act are as
under:
DUTIES OF SELLER BEFORE SALE
(i) To disclose any material defect- The
seller is bound to disclose to the buyer any
material defect in the property or in the
seller’s title thereto of which the seller is
and the buyer is not aware, and which the buyer
could not with ordinary care discover. A latent
defect is a defect, which cannot be discovered
by the buyer with ordinary diligence.
(ii) To produce documents of title-
The seller is bound to produce to the buyer
on his request for examination all documents of
title relating to the property which are in the
seller’s possession or power.
(iii) To answer question about the
property or the title thereto- The seller is
bound to answer to the best of his information
all relevant questions put to him by the buyer
in respect to the property or the title thereto.
(iv) To execute conveyance- The seller is
bound on payment or tender of the amount due in
respect of the price, to execute a proper
conveyance of the property, when the buyer
tenders it to him for execution at a proper time
and place. The seller is bound to execute
conveyance on the payment of price by the buyer.
(v) To take care of the property and title
documents- The vendor is bound between the
date of the contract of sale and the delivery of
the property, to take as much care of the
property and all documents of title relating
thereto, which are in his possession as an owner
of ordinary prudence would take of such property
and documents.
(vi) To pay outgoings - The seller
is bound to pay all public charges and rent
accrued due in respect of the property upto the
date of the sale, the interest on all
encumbrances on such property due on such date,
and, except where the property is sold subject
to encumbrances to discharge all encumbrances on
the property then existing.
AFTER SALE
(i) To deliver possession of the property -
The seller is bound to give, on being so
required, the buyer or such person as he
directs, such possession of the property as its
nature admits.
(ii) Implied covenant for title -
The seller shall be deemed to contract with the
buyer that the interest which the seller
professes to transfer to the buyer subsists and
that he has power to transfer the same.
(iii) To deliver title deeds on
receipt of consideration- Where the whole of
the purchase money has been paid to the seller,
he is bound to deliver to the buyer all
documents of title relating to the property
which are in the seller’s possession or power;
SELLER’S RIGHTS BEFORE SALE
To take rents and profits - The seller is
entitled to the rents and profits of the
property till the ownership thereof passes to
the buyer.
BUYER’S DUTIES BEFORE COMPLETION OF SALE
(i) To disclose fact which materially
increases the value of property-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 the buyer is aware, but of
which he has reason to believe that the seller
is not aware, and which materially increases the
value of such interest.
(ii) To pay price for the property- The
buyer is bound to pay or tender, at the time and
place of completing the sale, the purchase money
to the seller or such person as he directs;
provided that, where the property is sold free
from encumbrances, the buyer may retain, out of
the purchase money, the amount of any
encumbrances on the property existing at the
date of the sale and shall pay the amount so
retained to the persons entitled thereto.
(iii) To bear loss to the property- The
buyer is bound to bear any loss arising from the
destruction, injury or decrease in value of the
property not caused by the seller where the
ownership of the property has passed to the
buyer.
(iv) To pay public charges and rents-
Where the ownership of the property has
passed to the buyer, as between himself and the
seller, the buyer is bound to pay all public
charges and rent which may become payable in
respect of the property, the principal moneys
due on any encumbrances subject to which the
property is sold, and the interest thereon
afterwards accruing due. | 
