MARIA QADEER

ASSIGNMENT OF land
law
SUBMITTED TO ;- SIR
justice Hassan feroz
BL NO ;- 0832

Sale;-

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

3. Definition of Sale
Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part
promised.

Right and liabilities of buyer and seller in Immovable property

Section 55 of transfer of property act 1882 describes right and liabilities of buyer and seller.

In any property transaction, buyers and sellers are subject to Right and liabilities. In the absence
of a contract to the contrary, the buyer and the 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.

Liabilities of  buyer :-
According to section 55(5) of transfer of property act 1882

1)Liability to disclose facts– The buyer is liable 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.

CASELAW;-

In  the case of  Hazi isha V/s Daya Bhai ;- it has been held that it is the duty of the buyer
that he should provide all information related to ownership which he is in know, to the seller.
This arrangement is based on the principle of equity and relations of believe between buyer
and seller.

2) Liability of payment of purchase money-  The buyer is liable 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.

3)Liability to bear damages– where the ownership of the property has passed to the buyer, he is
bound to bear any loss arising from the destruction, injury or decrease in value of the property not
caused by the seller.

4)Liability to pay due amount- where the ownership of the property has passed to the buyer, as
between himself and the seller, he is liable 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

.CASELAW;-

In the case of Gangi V/s Govinda it was held that the buyer is liable to pay all the charges
after sale. Due amount includes revenue, principal, interest etc.
5) 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.

Right of Buyer:-
According to section 55(6) of transfer of property act 188

1) 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.

2) Right to get Benefits, Rents;- 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; in

CASE LAW;-
 “Achtak V/s Parmeshwar” it was decided that the buyer is entitled to get benefits of the
maintenance done by seller.

Right to get Interest-unless he has improperly declined to accept delivery of the property, to
a charge on the property, as against the seller and all persons claiming under him, to the extent of
the seller’s interest in the property, for the amount of any purchase-money properly paid by the
buyer in anticipation of the delivery and for interest on such amount; and, when he 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.
An omission to make such disclosures as are mentioned in this section, paragraph (1), clause (a),
and paragraph (5), clause (a), is fraudulent.

Liabilities of seller:-
According to section 55(1) of transfer of property act 1882

1)Liability to Reveal Fault:-   The seller is bound to disclose to the buyer any material defect in the
property 1[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;

CASE LAW ;-

In the Case “Ganpat Ranglal V/s Mangilal Hiralal” High Court held  that the seller is not bound to
disclose such faults which is really known by buyer or otherwise he is in know of the information.

2)Liability to Submit Document:-  The seller is liable 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;

3)Liability to Submit Document as to Entitlement:-  The seller is liable 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;

CASELAW;-

in the case of Laxmidas & Company V/s D.J. Tata it has been held by the Mumbai high court that
if the seller does not answer for such questions then the contract may be rescinded by the buyer.

4)Liability to Excecute 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;

5) Liability to Protect Document:-  The seller is bound to protect the document 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.
6) Liability to Deliver up Occupation:- The seller is liable to deliver up the occupation  to give, on
being so required, the buyer, or such person as he directs, such possession of the property as its
nature admits;

CASE LAW;-

in the case Darpan V/s Kedar Nath it has been held that if Seller does mistakes in delivering up to
possession the buyer can file a suit against seller.
7) 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.
8) 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
9) 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.
10) 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.

Right to Seller:-
According to section 55(4) of transfer of property act 1882

1)Right to get Rent and Profit:-  The seller is entitled to the rents and profits of the property till the
ownership thereof passes to the buyer.

2)Right to get Interest on Unpaid buying money:-where the ownership of the property has
passed to the buyer before payment of the whole of the purchase-money, to a charge upon the
property in the hands of the buyer, any transferee without consideration or any transferee with notice
of the non-payment, for the amount of the purchase-money, or any part thereof remaining unpaid,
and for interest on such amount or part from the date on which possession has been delivered. 

Case law;-

In “Subba Rao V/s Vasudev Shastri” the A.P High Court decided that the seller is entitled to get
interest on selling-money only when the possession of sold property is given to buyer.
3)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.
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.