Rights and Liabilities of Buyer and Seller
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.
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