Meaning of Sales
According to section 54 of the Transfer of Property Act, 1882, the sale of transfer refers to “the ownership in exchange for a price paid or promised or part-paid and part-promised. In a sale, there exists an absolute transfer of all rights in the property sold.”
Two different approaches can be used to close a sale.
- A Registered Instrument must be used in the sale of any Tangible Immertovable Property of one hundred rupees or more, as well as the sale of any reversion or other intangible asset.
- If the value of the immovable property sold is less than one hundred rupees, possession might be transferred without further consideration.
It is agreed that delivery of tangible immovable property has occurred when the seller transfers ownership of the property to the purchaser or the purchaser’s agent. Real estate contracts outline the stipulations for purchasing and selling land or buildings. It neither imposes any responsibility on the property nor generates any interest in or charges against the property.
When trying to resolve property-related issues and gain insight into the intricacy of the situation, it is recommended that you seek the advice of a lawyer who can lead you through the procedure in detail. It’s something a lawyer is qualified to help you with.
Elements of Sale Transfer
There are always at least two parties in a sale: the buyer and the seller.
- parties involved in a transfer
- they Whom You Are Transferring
The person selling his property is the transferor, and the one buying it is the transferee. A seller and buyer agreement are necessary for a sales contract.
The transferor or seller must be a legally capable adult who is not legally barred from transferring the property. However, a minor or an incompetent adult cannot legally transfer their property despite being the owner.
Sale Subject Only Immobl Prop. Subject to Sec.54 of Act. There are two types of immovable property: physical and immaterial. Property that can be physically touched is called “tangible,” but “intangible” refers to things like a right of the fishery or a right of way that cannot be physically touched.
Money is the only acceptable form of payment for a Sale to be considered valid. It is not a sale if it is in exchange for another thing.
Rights and Obligations of the Seller
The duties and rights of the seller are specified in the contract. If no other agreement exists, the rights and obligations of the buyer and seller will be governed by section 55 of the Transfer of Property Act. Buyer and seller rights and responsibilities under Section 55 of the Transfer of Property Act are as follows:
Responsibilities for the Seller Ahead of the Sale
- All material defects in the property, including those that the buyer is not aware of and that the buyer cannot discover through the normal course of action, have to be disclosed by the seller to the buyer.
- any property-related documents in the seller’s possession or control must be made available to the buyer upon request.
- Legally, the buyer is entitled to ask the seller any questions about the property, and the seller must answer those questions to the best of his ability.
- Between the date of the contract of sale and the delivery date, the seller must use the same degree of care in protecting the property and all title papers relating to it as a prudent owner would. This duty exists only during the time frame beginning on the sales contract date and ending on the date the property is delivered.
- All government rents, fees, or dues must be paid in full by the seller before the transaction closes.
Responsibilities of the seller following the sale
- Upon completion of the sale, the seller is obligated to hand over legal ownership of the object to the purchaser. The Seller shall transfer title to the Property to the Purchaser or the Purchaser’s designee at the Purchaser’s request.
- If a seller represents to a buyer that he has the right to transfer an interest to the buyer, and the interest in the issue exists, the seller will be deemed to have contracted with the buyer on pretenses.
- Upon receipt of the full purchase price, the Seller shall provide to the Purchaser all Title Documents in the Seller’s Possession or Power related to the Property. Mortgages, deeds, and other forms of property title documentation are included.
Rights of the seller following a transaction
When a seller has debts of any kind, the debt might be secured by a lien or other charge on the property. If the purchase price has not been paid in full, the seller cannot withhold transfer of possession from the purchaser or reclaim possession of the property from the purchaser, as stated in Section 55(4)(b). However, all unpaid funds for the property’s acquisition belong to the seller and can be recovered by them at any time.
Pre-sale buyer Rights
If the Buyer has not unreasonably refused to accept delivery of the property, he is entitled to the following under Section 55(6)(a):
- Lien on the property for the amount of the down payment he properly made, even though he never took possession of the goods.
- The amount of interest incurred on the financing utilized to make the acquisition.
- If he legitimately refused to accept delivery of the goods, the deposit and any costs granted to him in action brought to gain a verdict for the particular execution of the contract or to seek a decree for its recession.
Post-Sale Rights of the Buyer
In addition to the rents and profits that accrue from the appreciation of the property and the increase in its value, the buyer is entitled to certain benefits under subsection 55 (6) (a).
Conclusion
Those mentioned above are just some general tips for selling a home in India. However, it is highly recommended that you consult an property expert before making any final decisions because this deal could have major consequences for you.
