INTRODUCTION
Sale is transferring property or ownership by a seller to the buyer in exchange for a price paid or promised to be partly paid or part promised. There is the absolute transfer of all rights in the property sold. The seller must be competent to transfer the property.
RELEVANT PROVISIONS
Section 54, 55 of the Transfer of Property Act 1882.
DEFINITION OF SALE
Sale is a transfer of ownership in exchange for a price paid or promised or partly paid and partly promised.
SALE HOW MADE
In Case of Tangible Property: A sale of tangible immovable property such as a house building can be made.
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- By a registered instrument if its value is Rs. 100/= or upwards
- By the delivery of the property if its value is less than 100
In case of Intangible Property: A sale of intangible immovable property such as a mortgage deed or any other right be made by a registered instrument.
CONTRACT OF SALE
A contract for the sale of immovable property is a contract that a sale of such property is settled between the parties It does not itself create any interest in or shall take place on terms charged on such property.
ESSENTIALS OF SALE
1. PARTIES
Buyer: For a sale of an immovable property there should be a buyer to whom the property is being sold.
Seller: For a valid sale of the immovable property it is essential that the vendor receives the stipulated money and gives possession and ownership of the property to the buyer.
2. SUBJECT MATTER
Section 54 of the Transfer of Property Act deals with immovable property. Hence the subject matter of section 54 is immovable property.
3. CONSIDERATION
Price is the consideration of the sale which is settled between the parties.
4. TRANSFER
The sale does not become complete unless the seller does an act having an effect in law transferring the rights of the seller in the property to the buyer.
5. TITLE TO PROPERTY
To be a valid sale the seller of the property should not have a defective title rather he should have a good title in the property.
6. CONVEYANCE
A night to get conveyance is neither an interest in the land nor a change in the land nor any legal incident following from land under section 54 but after all, it is a right having corresponding obligation attached to the ownership of land.
7. PRICE
The term price means money which is a consideration. The sale of the property must be followed by the payment of the price and delivery of possession.
8. DELIVERY OF POSSESSION
For section 54, there must be a real and not a constructive delivery of property.
SELLER
DUTIES OF THE SELLER
The duties of the seller are the following.
- To Disclose any Defect in Property
- To Production of Document of Title
- To Answer all the relevant Questions
- To Register a Sale deed
- To take dueCare of Property and Documents
- To Deliver the Possession of Property
- To Pay all Charges
- To own the power to transfer
- To Deliver the Document
RIGHTS OF THE SELLER
1. Rent and Profit
The seller is entitled to the rents and profits of the property till the ownership there passes to the buyer
2. Charge on Property
Where the ownership of the property has passed to the buyer before the payment of the whole of the purchase money, to a charge upon the property in the hands of the buyer and transferee without consideration or any transferee with notice of non-payment for the amount of purchase many or any parts of remaining unpaid, and for interest on such amount or part unpaid and for interest on such amount or part from the date on which possession has been delivered
BUYER
DUTIES OF BUYER
1. To Disclose any Fact About the Property
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.
2. To Pay the Price
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 return 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. To Bear the Loss
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. Payment of Public Charges
Where the ownership of the property has passed to the buyer, as between himself and the seller, to pay all public charges and rent which may become payable in respect of the property, the principal money due on any encumbrances subject to which the property is sold and the interest thereon afterwards accruing due.
RIGHTS OF BUYER
1. Right of Improvement
Where the ownership of the property has passed to the benefit of any improvement in or increase in value of the property and to the rent and profits thereof.
2. Benefit of Seller
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 and 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.
CONCLUSION
It is concluded that a sale is the transfer of property or ownership in exchange for a price paid or promised to be partly paid or partly promised. The essentials of sale, are parties’ subject matter, transfer price or consideration title of property, and delivery of possession. The seller and buyer shall be subject to the liabilities and rights enumerated in the Transfer of Property Act 1882.
FAQs
Explain the contract for the sale. What are the rights and duties of the buyer?
(2018-S, 2015-S, 2013-A)
Explain the rights and duties of the seller and buyer.
(2017-S)
What are the rights of the buyer in a contract of sale? Discuss how an agreement to sell differs from the sale.
(2012-S)
What is Sale? Discuss the rights and duties of the buyer.
(2011-A)
What is a sale? Discuss the rights and duties of the seller.
(2010-S)
What is a sale? Discuss the rights of the seller.
(2009-A, 2008-A)
