Sale of Immovable Property Law Notes

After completion, the buyer may sue the seller for breach of the warranty of title. The seller usually sells the property with full title security, unless the seller is a trustee, personal representative, or mortgagee, in which case the seller usually sells the property with limited security. The price is the consideration paid for the transfer of ownership. Therefore, the price is money, but not necessarily money paid immediately in banknotes and coins, it includes money that may already be due or payable at a later date. A transfer is not a sale if no price is paid or promised or partially paid or promised. The transaction sold without consideration does not constitute a gift unless proof is provided, nor an exchange if the seller does not transfer ownership of the property. A sale can be made orally, there is no obligation to be transferred by a written document. [vi] In Nalamathu Venkaiya v. B.S. Neelkanta,[vii] the court held that payment of consideration is essential when a transfer of ownership takes place through a sale. The timing of payment of the consideration is not important.

The consideration may be promised or paid at a later date. The phrase “paid or promised to pay” also suggests that this promise to pay must be genuine. The buyer cannot avoid his principal obligation to pay the consideration, and if he tries to evade payment in a dubious manner, no transfer of ownership from the seller to the buyer. For example, if the buyer pays money through a cheque that is not cashed, the sale will not take effect (Inder Kaur v. Tara Singh, 1978). The same rule would apply if there is an express intention to the contrary in the contract, ownership will not be transferred, payment has not been made in full, or consideration is paid in advance. This would give the buyer the right to bring an action in possession (Vidhyadhar v. Manikro, 1999).

If the buyer has knowledge or information about the nature and extent of the seller`s interest in the property and such knowledge or information indicates an increase in the material value of such interest, the buyer is obliged to disclose such information to the seller. This obligation applies if the buyer has reason to believe that the seller is not aware of this information. has. If ownership of the property has been transferred to it in favour of an improvement or increase in the value of the property as well as rents and profits. In Rail Vihar Kalyan Sahkari Awas Samiti v. The State of Uttar Pradesh (2005), a housing cooperative association, and its members brought a lawsuit against the Additional Managing Director, Noida, whereby Noida ordered the individual members to enter into a tripartite agreement with the charitable/cooperative organisations as tenants and NOIDA as owners for the sale of superstructures and sublets of these apartments. housing, housing allocated by the society to its individual members and preventing them from collecting stamp duty on the execution of the tripartite act. Such a transfer in the case of real estate worth one hundred rupees and more.

b. If ownership of the property has been transferred to the buyer, the buyer must pay between him and the seller all public charges and rents due in connection with the property, the principal amounts of all charges at which the property is sold and interest due subsequently. a.Si ownership of the property has been transferred to the buyer, bear all losses resulting from the destruction, injury or depreciation of the property not caused by the seller. has. The seller is entitled to the rents and profits of the property until the ownership of it passes to the buyer; The buyer or seller of the property is subject to responsibilities and has the rights listed in the following rules: – The transfer of a property involves the transfer of 3 fundamental rights: This is an “absolute transfer” – the seller does not retain any rights or privileges in relation to the property transferred after a sale. There must be a complete transfer of rights from the seller to the buyer for it to be a sale. The intent and content of a transaction are also important. For example, if the owner only constitutes the property as collateral or security for a loan taken out by the bank, it is a mortgage and not a sale. If a house were to be rented to a tenant, it would be a lease, not a sale.

A power of attorney cannot be called a sale. In general, when selling real estate, the three legal requirements are that the transfer of ownership by sale must be made using a validly signed deed of sale signed in writing, duly certified and registered by the seller (Munnalal v. Armaram, 2008). The type of possession has a significant influence on the transfer of possession. The seller must leave the property, whether he occupies it himself or a tenant occupies it. The seller must also eliminate any intruders who illegally occupy the property. However, if a tenant already occupies the property or in the case of a usufruct mortgage, the buyer receives only a symbolic property. c.

the seller`s obligation to answer to the best of its ability any relevant questions put to it by the buyer about the property or the property thereof; Right to interest – unless he wrongly refused to accept delivery of the goods, to a charge of the goods to the seller and to all persons who, to the extent of the seller`s interest in the goods, claim the amount of the purchase price duly paid by the buyer in anticipation of delivery and interest on that amount; and, if he duly refuses to accept delivery, also for the seriousness (if any) and for the costs (if any) attributed to him by an action to enforce a specific performance of the contract or to obtain a cancellation order. If it appears from the recitals of the deed of sale that ownership would be transferred after payment of the full consideration, it would be concluded that no transfer takes place until the consideration has been paid. The seller is entitled to full consideration in accordance with the purchase contract. If the contract stipulates that payment must be made within a certain period, the buyer must respect this deadline. If the buyer does not pay within the period specified in the contract, this constitutes a breach of the contract on his part. 7. At the conclusion of the sale, the seller is obliged to hand over ownership of the property to the buyer. In Subba Rao v/s Vasudev Shastri (1951), the court held that the seller is entitled to interest in the sale price only if ownership of the property sold passes to the buyer. If requested by the buyer, the seller must submit the title deed for inspection before the deed of sale is signed. The main objective is to convince the buyer that there is no defect or problem with the title and that there would be no disadvantage if the buyer acquired it. Delivery of the property usually takes place at the registered office of the seller/seller`s representative or lawyer.

However, the legislator may also establish regulations on the place of delivery. Such a transfer may be effected in the case of immovable property with a value of one hundred rupees or more, or in the case of restitution or other intangible property, only by registered deed. In the case of tangible property with a value of less than one hundred rupees, such transfer may be effected either by registered deed or by delivery of the property. Section 54 establishes a specific method for the execution of a bill of sale in respect of an immovable and the conclusion of the sale. 3. A sale must be made by registered deed if the immovable property has a value of one hundred rupees or more, or in case of restitution or in the case of intangible property. While a purchase contract does not require registration. [ix] Section 55 requires Seller to detect or disclose all “material defects” relating to Seller`s ownership and ownership. This obligation applies if the seller is aware of the defect and the buyer is not.

The defect must also be such that a prudent person, despite due diligence, would not be able to discover the problem in the property or in the title. If the seller deliberately neglected this obligation, this would in turn amount to fraud or omission. If a property is transferred with the intention of selling it to the buyer for valuable consideration, the transfer of ownership includes the delivery of the property as well as the ownership rights in the property. Immovable property can be tangible or intangible. According to § 6, assets of any kind may be transferred, with the exception of the following: 4. The buyer is obliged to pay public taxes and rents arising from the property. He is also obliged to pay the principal receivables attributable to the charges at which the property is sold and the interest resulting therefrom. The seller`s obligation to treat title and title deeds with reasonable care begins before the execution of the deed of sale and lasts until delivery of the property to the buyer.

Section 55 provides that the buyer has the right to reduce the price or consideration to be paid if the property or title is damaged. The buyer may also bring an action for damages at its discretion and claim damages from the seller. In the case of large real estate transactions, the buyer must make a public announcement in the newspaper through his lawyer expressing interest in buying the property. The bill of sale is subject to stamp duty in accordance with Section 23 of Schedule 1 of the Indian Stamp Act and must be executed on stamped paper equivalent to that of the transfer, otherwise it will result in a tax penalty equal to 10 times the actual stamp duty.