|
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.
|
