Rights and Duties of Seller and Buyer 123

PRESENTATION ON:
Rights And Duties Of Seller and Buyer

Transfer of Property Act 1882
Prepaired by:
Prabhdeep Singh Grewal

Law Student 4th Sem
Roll no- 14/08
Acknowledgement
I take this opportunity to express our sincere gratitude to each and
every person who has directly or indirect helped me through this
project. My experience has been fulfilling and rewarding. I also
extend our sincere thanks to Mrs.Vandna Bhanot, Faculty, University
Institute Of Law , Ludhiana for giving us the opportunity to work on
this topic and carry out our project work. It is our pleasure to express
our sincere gratitude for her continuous support and guidance which
helped us in accomplishing this project successfully. We thank her
for providing her invaluable time, support, and co-operation to
complete the project work.

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:
Seller’s Duties
* Before sale
To disclose material defects in the property or title
To produce the title-deeds for inspection
To answer relevant questions as to title
To execute conveyance
To take care of the property and title deeds
To pay the outgoings
* After sale
To give possession to the buyer
To covenant for title
To deliver title deeds on receipt of the price

Seller’s Rights
* Before sale
Entitled to all rents, profits or other benefits
After sale
Charge on property
* Buyer’s Duties
Before Sale
To disclose facts which materially increases the value of property?
To pay the price
After sale
To bear the loss to the property
To pay the outgoings
* Buyer’s Rights
Before Sale
Chare on property for price paid
After sale
Entitled to all benefits

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.
In spite of all these laws and rules, unfortunate and unexpected events
happening cannot be ruled out. Buyer and seller meet with different
assumptions and expectations. Sometime, the true facts are hidden for
monetary gain. Because of these, problems arise, which sows the seeds of
ill feeling among the seller and the buyer.
To avoid such unpleasant situations, it is essential that the parties through
their learned and experienced advocates scrutinize all aspects of the
transaction to their mutual satisfaction. After, finalizing the price,
identification of the specific property to be transferred and other terms and
conditions, an Agreement for sale, is signed by the parties, which has a
vital role to play in deciding the rights and liabilities of the parties.

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PRESENTATION ON:

Rights And Duties Of Seller and Buyer

Prabhdeep Singh Grewal

I take this opportunity to express our sincere gratitude to each and

every person who has directly or indirect helped me through this

project. My experience has been fulfilling and rewarding. I also

extend our sincere thanks to Mrs.Vandna Bhanot, Faculty, University

Institute Of Law , Ludhiana for giving us the opportunity to work on

helped us in accomplishing this project successfully. We thank her

for providing her invaluable time, support, and co-operation to

complete the project work.

To produce the title-deeds for inspection

To answer relevant questions as to title

To take care of the property and title deeds

To pay the outgoings

To covenant for title

To deliver title deeds on receipt of the price

Entitled to all rents, profits or other benefits

To disclose facts which materially increases the value of property?

To pay the price

To bear the loss to the property

To pay the outgoings

Chare on property for price paid

Entitled to all benefits

seller’s possession or power.

respect to the property or the title thereto.

conveyance on the payment of price by the buyer.

owner of ordinary prudence would take of such property and documents.

encumbrances to discharge all encumbrances on the property then existing.

power to transfer the same.

the ownership thereof passes to the buyer.

BUYER’S DUTIES BEFORE COMPLETION OF SALE

ownership of the property has passed to the buyer.

afterwards accruing due.

ill feeling among the seller and the buyer.

To avoid such unpleasant situations, it is essential that the parties through

their learned and experienced advocates scrutinize all aspects of the

transaction to their mutual satisfaction. After, finalizing the price,

identification of the specific property to be transferred and other terms and

conditions, an Agreement for sale, is signed by the parties, which has a

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