1. Introduction
Sale
is considered main mode of transfer of property. Through this mode of transfer
of property, both seller and buyer of immoveable property get some rights and
both are subject to some liabilities. However, such rights and liabilities
emerge in absence of contract to contrary.
2.
Meaning of Sale
A
contract between two parties, called, respectively, the seller and the buyer,
by which the former in consideration of the payment or promise of payment of a
certain price in money transfers to the latter the title and possession of
property. (Black’s Law Dictionary)
3.
Definition of Sale
Sale
is a transfer of ownership in exchange for a price paid or promised or part
paid and part promised.
4. Rights and Liabilities of Seller
Following
are the rights and liabilities of seller
(i)
Production of documents
On
buyer’s request for examination, seller is bound to produce to buyer all
documents of title, which related to immoveable property and which are in
seller’s possession or power.
(ii)
Disclose to the buyer material defect
The
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.
(iii)
Answer to Questions
Seller
is bound to answer to best of his information all relevant questions, which
buyer puts to him in respect to immoveable property or title to immoveable
property.
(iv)
Rent and Profits
The
seller is entitled to the rents and profits of the property till the ownership
thereof passes to the buyer.
(v)
Care of Immoveable Property and Documents
Between
date of contract of sale and delivery of immoveable property, seller is bound
to take as much care of the property and all documents of title as an owner of
ordinary prudence would take care of such property and documents.
(vi)
Delivery of Possession of Immoveable Property
Seller
is bound to give possession of immoveable property to buyer or some other
person according to directions of buyer.
(vii)
To give Possession
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.
(viii)
To pay all public charges
The seller
is bound to pay all public charges and rent accrued due in respect of the
property upto date of the sale, the interests 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.
(ix)
To deliver documents
The
seller is bound, where the whole of the purchase money has been paid to the
seller to deliver to the buyer all documents of title relating to the property
which are in seller’s possession or power.
(x)
Subsistence of Interest
Seller
is deemed to contract with buyer that interest, which seller professes to
transfer to buyer, subsists and that he has power to transfer such interest.
And when sale is made by a person in a fiduciary character, he is deemed to
contract with buyer that seller has done no act whereby immoveable property is
encumbered or whereby he is hindered from transferring it.
(ix)
Payment of Purchase money
When
ownership of immoveable property has been passed to buyer before payment of
whole of purchase-money, seller is entitled to a charge upon that property,
which is in hands of buyer.
5. Rights and Liabilities of buyer
Following
are rights and liabilities of buyer
(i)
Right to get benefit of improvement
The
buyer is entitled where the ownership of the property has passed to him, to the
benefit of any improvement in or increase in value of the property and to the
rents and profits thereof.
(ii)
To disclose any fact about 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
increase the value of such interest.
(iii)
Payment or tendering of purchase-money
Buyer
is bound to pay or tender purchase-money to seller or some other person
according to directions of seller at time and place of completing sale.
(iv)
Bearing of Loss
When
ownership of immoveable property has been passed to buyer, he is bound to bear
any loss, which arises from destruction, injury or decrease in value of the
property when such destruction, injury or decrease is not caused by seller.
(v)
Entitlement to improvement and increase in value of immoveable property
When
ownership of immoveable property has been passed to buyer, he is entitled to
benefit of any improvement in the property or increase in value of the
property.
(vi)
Entitlement of Rents and Profits
When
ownership of immoveable property has been passed to buyer, he is entitled to
rents and profits of the property.
(vii)
Entitlement to charge on immoveable property
Buyer
is entitled to charge on immoveable property to extent of seller’s interest in
the property, to charge for amount of any purchase-money, which is properly
paid by buyer in anticipation of delivery, and to charge for interest on such
amount. Such charge is against seller and all persons, who claim under seller.
Here condition is that buyer should not have improperly declined to accept
delivery of the property.
Conclusion
To
conclude, it can be stated that rights of seller have not been described in
transfer of property act. In fact, rights of seller can be determined through
liabilities of buyer.
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