Property Transfer Act: Buyer & Seller Obligations & Rights
Property Transfer Act- When a property is transferred between a buyer and a seller, there are numerous laws and regulations that must be followed. As a result, certain rights and obligations exist to safeguard the interests of both parties. Understanding your rights and obligations is important whether you’re a buyer or a seller to protect yourself from unpleasant shocks.
Are you searching for new projects in Goregaon?
The contract, which is discussed between the parties at the outset of property transfer, governs the obligations and rights of a seller and a buyer. In the absence of such an agreement, the Transfer of Property Act of 1882’s rules outlined in Section 55 are followed when transferring property. To safeguard themselves from an unjust contract, all parties must be aware of their rights and benefits. Continue reading to learn about a seller’s and a buyer’s obligations during a property transfer.
Obligations or liabilities of the seller before the sale
The following are the obligations a seller has before a sale:
Disclosure of the property’s flaws
All material flaws in the property that a buyer might not be aware of or be unable to spot in the normal course of business must be disclosed by the seller to that buyer. A material defect is a problem with a part or system of a residential property that could negatively affect the value of the property in question or pose an unreasonable risk to the occupant, such as temporarily concealed, serious seepage problems, a shaky building foundation, etc.
Examination of the title deed
All title documents pertaining to the property that are in the seller’s possession or within their range of access and production must be made available to the buyer upon request. Additionally, the seller is obligated to provide accurate information in response to any questions the buyer may have about the property or its title.
Make a conveyance agreement
It is required to sign a contract with the buyer that specifies how long the buyer’s interest in the property will last after the seller transfers it to him or her.
Remove all debts & taxes
Additionally, it’s critical to pay and resolve any outstanding debts that have been accrued on the property up until the sale date, such as house loans and other encumbrances like property taxes.
Between the date of the purchase agreement and the transfer of possession, the seller has a further important responsibility to take reasonable care of the real estate and any pertinent title papers.
After-sale obligations of the seller
Following the completion of the sale, the seller is required to perform the following obligations:
Transfer ownership to the buyer
After the sale is completed, the seller must turn over control of the property to the buyer or any other person the buyer directs.
Deliver title deeds after payment has been received
All documents pertaining to the property’s title that the seller owns must be delivered whenever the buyer purchases the property. The deed’s rights are inherited with the land. A complete transfer from the seller to the buyer is thus necessary. The buyer must also determine whether the title deed & the property are subject to an unregistered mortgage; failing to do so might be considered willful neglect.
Seller’s rights
The following rights must be understood by a seller:
Rent and revenue
Prior to the sale, the seller is obligated to pay all profits and rent derived from the property.
Payment of consideration
The selling contract, which the seller is entitled to, is all that the buyer has to go on. The buyer must follow any time constraints, for instance, if the contract requires that a portion of the money be made within a certain window of time.
Duties of the buyer before the sale
The obligations & liabilities of a buyer prior to the transaction are listed below:
Timely payments
The buyer is obligated to provide the promised consideration. The buyer must make payment to the appropriate party as directed by the seller at the agreed-upon time and location of consummating the deal. The seller has the right to sue the buyer if they fail to abide by the payment terms.
Encumbrances on the property
Any encumbrances must be cleared before the seller sells the property to the buyer. But let’s say that before the sale deed is signed. The buyer learns that the property is subject to encumbrances or charges. In that instance, they are able to keep some of the purchase price to go towards paying for the property. In this situation, the buyer also has the option of cancelling the contract or bringing legal action against the seller.
Buyer’s duties after the sale
The following are the buyer’s obligations following a property sale:
Recover the property loss
As soon as ownership passes to the buyer, they are responsible for paying for any damage, loss of value, or other losses to the property that are not the result of the seller’s negligence. Even in situations where the property transfer is complete, this rule still applies. The purchaser has not yet received it, though.
Pay the expenses
The ownership of the property is the main point of emphasis. Similar to incurring losses, the owner of a property must pay any taxes or rent due on it after purchasing it. Authorities may impose taxes as public charges. Instead of the seller or buyer, the government levies tax on the property.
Buyer’s rights
The following details highlight the buyer’s rights:
Property value agreed upon
Even if the property worth rises as a result of recent announcements like infrastructure upgrades. The seller cannot demand a higher price once the purchase is finalised. In these situations, the buyer will gain from the increase in profits and rentals.
Utilise payment for prepaid consideration
Typically, when a contract of sale is made, the seller requests a deposit from the buyer. This sum changes from situation to situation. The buyer has the right to place a lien on the real estate against the seller, anyone claiming under him. And the interest accrued on the delivery deposit they made. This statutory fee is assessed starting on the day of payment.
The Earnest amount
The earnest amount is the portion of the purchase price that the buyer pays the seller at the time the contract is signed. It serves as a guarantee that the buyer will fulfil the contract and is retained by the seller as security. In the event of a default by the buyer, the seller may keep the earnest money. The buyer may launch a lawsuit and get the money back if the vendor commits fraud.
In addition to these obligations and rights, which are often outlined in the “Sale Agreement,” it seems sense to include a penalty clause in the same document. This provision states that any earnest or token money (often 10% to 20% of the total sale price of the property) paid. By the buyer shall not be refunded in the event that the buyer fails to make the balance payment when due or cancels the transaction.
If you intend to buy or sell a property, it would be helpful to spend some time learning about your obligations and privileges so that you are aware of what is required of you and what your rights are throughout the selling process.
You’re looking for Projects in Matunga we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/matunga/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
