News: Rights and liabilities of buyers and sellers-03-04-2019
Updated On : April 03, 2019
You must know these legal rights and liabilities before you become a part of the buying or selling process.
In any property transaction, buyers and sellers are subject to liabilities and duties. This ensures a smooth transfer of property without any legal dispute between the transacting parties. You must know these legal rights and liabilities before you become a part of the buying or selling process.
“Before execution of the sale deed, both buyers and sellers can make an agreement to sale (Builder Buyer Agreement) which provides for the rights of the parties. In case any party backs out, the other party can sue for specific performance of the said agreement, subject to the proof that it is and has always been ready and willing to perform its obligations in the said agreement,” said Kumar Mihir, a Supreme Court lawyer.
A seller needs:
1. To disclose to the buyer any material defect in the property or in the seller's title
2. To produce to the buyer, on his request, all documents of the title relating to the property
3. To answer to the best of his knowledge, all relevant questions put to him by the buyer in respect to the property or the title
4. That on payment of the due amount, he has to execute a proper conveyance deed of the property
5. To protect the property documents and contract of sale between the date of the contract of sale and the delivery of the property
6. To handover the property after the payment is made
7. To pay all public charges and rent accrued up to the date of the sale, except where the property is sold subject to encumbrances
8. To handover the title documents relating to the property
“The seller is liable to take the rental benefits of a property till the date of handover for the property. Additionally, he/she can demand interest for the unpaid amount from the delivery date of the property to the buyer,” explains Amit Wadhwani, co-founder, Sai Estate Consultants.
The seller is entitled:
Ø To the rent and profit of the property till the ownership passes to the buyer
Ø That where the ownership of the property has passed to the buyer before payment of the complete purchase amount, to a charge upon the property in the hands of the buyer
A buyer is bound:
1. 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
2. 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
3. That where the ownership of the property has passed to the buyer, to bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller
4. That where the ownership of the property has passed to the buyer, he has to pay all public charges and rent which may become payable in respect of the property, the principal amount due on any encumbrances subject to which the property is sold, and the interest thereon
The buyer is entitled
Ø To make improvement to increase the value of the property and rent it out, after the payment is done
Ø That if he has declined to accept the delivery of the property, he can claim back the purchase money paid or any other charges from the seller as per the contract
