SALE AND EXCHANGE:

RIGHTS AND LIABILITIES OF

BUYER AND SELLER
PRESENTED BY:
VAIBHAV MUKHRAIYA
17074
INTRODUCTION TO SALE AND EXCHANGE
• Sale defined in § 54 of the Transfer of Property Act, 1882.
 Transfer of ownership
 Money as a consideration which is paid or promised or part-paid and part-promised.
 Contract of Sale

• Exchange defined in § 118 of the Transfer of Property Act, 1882

 Mutual transfer of ownership of one thing for other thing
 Neither thing or both thing being money only.
RIGHTS AND LIABILITIES OF BUYER AND
SELLER

• Covered under section 55 of the Transfer of Property Act, 1882.

• Provision applicable in absence of a Contract to Contrary.
• Seller’s liabilities and Rights.
• Buyer’s liabilities and Rights.
RIGHTS OF BUYER - § 55 (6)

• Rights Before Sale

 Buyer’s Charge u/s 55 (6) (b) – Right of charge on the property for any sum of money
paid by him towards price or as an advance.

• Rights after Sale

 Rights of benefits arising out of sale of property u/s 55 (6) (b) – Rents, Profits and
Produce or any other beneficial interest which are legal incidents of that property.

• Right of Marshalling - § 56
LIABILITIES OF BUYER – 55 (5)
• Liabilities before Sale
 Duty of Disclosure u/s 55(5)(a) – Duty of disclosure of material facts which may increase
the value of property.

 Payment of Price u/s 55 (5) (b) – Duty of execution of Sale Deed by seller and
corresponding payment of price by the buyer.

• Liabilities after Sale

 Bear loss to the property, if any, u/s 55 (5) (c) – If any damage caused to the property
subsequent to sale, Buyer liable to pay for the same.

 Payment of Outgoings u/s 55 (5) (d) – Buyer liable to pay the outgoings i.e.,
Government Dues, rents, revenue or taxes.
RIGHTS OF SELLER - § 55 (4)

• Rights before sale

 Seller entitled to all the rents, profits or other beneficial interest of property.

• Rights after Sale

 Seller’s Lien or Charge – Applicable in case when the price or any part thereof, remains
unpaid by the Buyer.
 Interest of Unpaid Price payable by the buyer.
LIABILITIES OF SELLER – § 55 (1)
• Liabilities/Duties before Sale • Liabilities/Duties after Sale
 Disclosure of material defects in the  Give possession to the buyer - § 55 (1)
property or title – § 55 (1) (a) (g)
 Produce title-deeds for inspection - § 55  Covenant for title
(1) (b)  Delivery of title - deeds on receipt of
 Answer relevant question as to title - § the price.
55 (1) (c)
 Execute conveyance - § 55 (1) (d)
 Take care of property and title-deeds §
55 (1) (e)
 Pay the outgoings - § 55 (1) (f)
RIGHTS AND LIABILITIES IN CASE OF
EXCHANGE - § 119-121

• Rights and liabilities of parties same as those of seller and buyer - § 120.

• Rights when a party is deprived of thing received in exchange - § 119

• Liability for loss due to defect in title

• Genuineness of money warranted by party giving the money - § 121