Rights of property seller in India

The Transfer of Property Act 1882 administers the sale of immovable property in India. According to the Act, in the absence of an agreement (sale deed), the buyer, as well as the seller of immovable property, has some vested rights and responsibilities.


Property seller rights & Property Seller Responsibilities

The responsibilities of a real estate property seller in India are:


Disclose Material Defect in Property Title

According to the Transfer of Property Act 1882, a seller must disclose to the buyer any identified material defect in the property or in the seller’s title, which the buyer is not mindful and cannot discover with ordinary care.


Provide Documents and Information for Examination

At the request of the buyer, the seller must provide towards the buyer for examination every documents of title involving the property, which is in the seller’s possession or authority. Furthermore, the seller must answer to the best of his information all pertinent questions put to him through the buyer concerning the property or the property’s title.


Execute Proper Conveyance

On the payment or tender of the consideration for the property, the seller must execute a proper conveyance of the property at a proper time as well as place. Furthermore, between the date of the contract for the sale and delivery of the property, the buyer should take care of the property and every documents of title.


Give Possession to Property

On implementation of the conveyance, the buyer should give to the seller or any individual as directed by the seller, possession of the property.


Pay all Dues up to Sale

The seller of the property should pay all public charges as well as rent accrued owing with regard to the property up to the date of the sale. Also, the interest on all encumbrances on such property outstanding on such date should also be borne by the seller unless the property has been sold subjected to encumbrances.


Sellers Interest in the Property

When a seller enters into an agreement for sale of property with a buyer, it is believed that the interest which the seller professes towards transferring to the buyer exists and that the seller has the authority to transfer the property.


Transfer of Property Documents

When all of the purchase money was paid to the seller, the seller should deliver to the buyer all documents of title, involving the properties which are in the seller’s possession or authority. If the seller retains any part of the property, then the seller is allowed to retain the property documents. If the sale of property is to be made to multiple buyers, then the buyer of the lot of the greatest value is allowed to the original property documents.


Rights and duties of seller & Property Sellers Rights

The rights enjoyed by a property seller, as per the Transfer of Property Act are.


Rents and Profits

The seller is eligible to the rents and profits of the property till the ownership passes towards the buyer.


Charge on Property

If the ownership of the property has been passed toward the buyer before payment of the entire of purchase money, then the seller has a right to a charge upon the property which is with the buyer. Also, the seller has a right to the sum of the purchase money or due part of consideration and for interest on such sum or part from the date on which possession has been delivered.


Rights of unpaid seller & Rights of Unpaid Seller against Buyer are

When the buyer doesn’t pay his dues towards the seller, the seller becomes an unpaid seller. Then the seller has some rights against the buyer.


Suit for Price

If any goods has been passed on to the buyer and the buyer has improperly neglected or refused towards paying as per the terms and conditions of the agreement, the seller can sue him inconsistent with the Section 55(1) of the Sale of Goods Act, 1930, because once the property was passed the buyer is bound to pay the value.

If the due date of payment was passed and goods is not been delivered yet, the seller could sue the buyer for the illegal neglect or refusal on his part as per clause 2 of Section 55.


Suit for Damages for Non-Acceptance

If the buyer unlawfully refuses or neglects to accept and pay the unpaid seller, the seller could sue the buyer for damages caused because of his non-acceptance of goods. As the buyer refused to buy the goods without any just cause, the seller might face some damages.


Repudiation of Contract before Due Date

In case the buyer rejects the agreement before the delivery date of the goods the seller could still sue for damages. Such an agreement is considered as a rescinded contract, and consequently, the seller could sue for breach of contract. This is covered in the Indian Contract Act and is recognized as Anticipatory Breach of Contract.


Suit for Interest

In case there is a specific agreement amid the parties the seller could sue for the interest amount owing to him from the buyer. This is when both individuals have explicitly agreed on the interest rate towards being paid to seller from the date on which the payment becomes due.

But if the individuals do not have such particular terms, still the court might award the seller with the interest amount owing to him at a rate which it sees fit.


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