Sale of immovable property

Central Government Act Section 54 in The Transfer Of Property Act, 1882 54. ” Sale” defined.Sale how made.-” Sale” is a transfer of ownership in exchange for a price paid or promised or part- paid and part- promised.
1. Ins. by Act 20 of 1929, s. 16.
Sale how made.- 1[ Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. 1[ In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property. Contract for sale.- A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property

Rights and liabilities of seller and buyer before and after completion of sale

The Transfer of property Act,Section 55 deals with the Rights and Liabilities of Buyer and Seller.
The Buyer’s Rights and Liabilities is divides into two :
1. Before of completion of Sale and
2. After completion
Buyer’s Rights :
1. Before of completion of Sale :
a. A charge on the property for the purchase of money properly paid by him in anticipation of the delivery.This charge is converse of the seller’s charge for unpaid price.
b. Interest on such purchase money.
c. The money and costs awarded to him in a suit for specific performance of the contract or to obtain a decree for its recession.
2. After Completion :
After Completion i.e., where ownership haS passed to him.
a. The buyer is entitled to the benefits of any improvement or increase in value of the property.
b. Rents and profits thereof.
 
Buyer’s Liabilities :
1. Before Completion of Sale :
The buyer is bound :
a. To disclose to the seller any fact as to the nature or extent of the seller’s interest in the property which the seller is not aware.This duty is like the seller’s duty to disclose material defects in the property.
b. To pay or tender the purchase money to the seller or to such person as he directs.
2. After Completion of Sale :
a.To bear any loss arising from destruction,injury or decrease in value of the property.
b. To pay public charge and rents which may become payable in respect of the property.
Seller’s Rights :
1. Before Completion of Sale :
The seller is entitled to rents and profits till the ownership passes to the buyer.If the buyer takes possession before completion of the sale,the seller has a right to claim interest on the unpaid purchase money from the date of possession.
2. After Completion of Sale :
The seller is entitled to a charge upon the property in the hands of.
a. The buyer or
b. Any transferee without consideration or
c. Any transferee with notice of non-payment,for the amount of the unpaid purchase-money.
Seller’s Liabilities :
The seller is bound :
1. Before Completion of Sale :
a.To produce to the buyer on his request for examination all documents relating to the property.The buyer must inspect the title deeds in his own interest,as otherwise,he may be fixed with constructive notice of matters which he could have discovered the title.
b. To the best of information,all relevant questions put to him.
c. On payment or tender of the price,to execute a proper conveyance of the property.
d. Between the date of the contract of sale and the delivery of the property,to take proper care of the proeprty.
e. To pay compensation to the buyer if there is any loss or damages to the property.
f. To pay all public charges and rent accrued due in respect of the property,up to the date of the sale.Public charges means Government Revenue,Municipal Taxes, etc.
2. After Completion of Sale :
a. To give to the buyer or such person as he directs such possession of property as its nature admits.Actual possession is not possible in the case of incorporeal rights such as a right to fishery,etc..
b. Where the whole of the purchase money has been paid to the seller he is also bound to deliver to the buyer all documents of tilte.The cost of obtaining the deeds should be borne by the seller.
This article is very useful to know the Rights and Liabilities of the Buyer and seller.

 

Difference between sale and contract for sale

Leases of immovable property

The Indian Transfer of Property Act, 1882 placed before you the provisions towards Lease of Immovable Property.  It contains the following terms like lease, lessor, lessee, premium, immovable property and lastly rent.

LEASE means the transfer of immovable property  is transferring  in a specified period with consideration by way of payment of cash paid or promised. It must be accepted by other person. But it is not contract.

For example:- The lands transferring for enjoyment for specified period with

any kind of consideration.

In this two persons one is Lessor and another  Lessee.

WHO IS LESSOR

Who is transferring the immovable proprty for enjoyment  in a certain

period  is called tranferer. In other words who is transfering his right for a certain period for an interest or enjoyment the immovable property by way of any kind of considerationt to another.

WHO IS LESEE: The person who is accepting to transfer for enjoyment of

immovable property of another in certain period on any kind

of consideration called lesee.

THE TRANSFERBLE PROPERTY IS CALLED LEASE PROPERTY.

The following ingredients are in Lease.

1. Qualified Parties

2. An immovable proerty

3. Period or conditions of Lease.

4. The transfer right to enjoy

5. Consideration

6. Registration.

After fulfilling above, there are some rights and liabilities between

Lessor and Lesee.

TERMINATION OF LEASE

Lease can be terminated under the following circumstances.

1. EXPIRY OF STIPULATED TIME

2. BY HAPPENING OF IMPLIED EVENT

3. BY TERMINATION OF LESSOR’S INTEREST

4. BY MERGER

5. LESSEE SURRENDER THE PROPERTY WITH THE CONSENT OF LESSOR

6. BY THE ACT OF PARTIES

7. LEASE CAN BE TERMINATED BY FORFEITURE DETAILED BELOW

a)  breach of condition   (b) Denial of landlord title (c) Insolvency

of Lesee.

The points explained supra are main in Lease.

Definition

Scope

Creation of lease

Rights and liabilities of lessor and lessee

Determination and holding over Exchange: Definition and mode

Actionable Claims

Gifts: Scope- meaning

Mode of transfer

Universal gifts

Onerous gifts