SALE OF IMMOVABLE PROPERTY

What If Buyer/Seller Breaches Sale Agreement

 

 

Sale is the transfer of ownership for money consideration. Section 54 of the Transfer Of Property Act defines sales as a transfer of ownership in exchange for a price paid or promised to be paid.

The elements which are necessary to continue a sale as under :

  • Transfer of ownership
  • Money consideration

Parties of sale :

SELLER AND BUYER

Essentials for a valid sale are as follows :

  1. the parties i.e. the seller and the purchaser are competent
  2. the subject matter i.e. the property is in existence
  3. the money consideration i.e. the price has been fixed or referred
  4. the conveyance i.e. the transfer has been made as prescribed under the law.

Cancellation of sale deed :

A sale deed can be got cancelled, if the contract is affected by coercion, undue influence, fraud. An agreement to sell immovable property may also be void under section 29 of the Indian Contract Act, 1882.

If non-transferable property is transferred by a sale-deed, it is void and liable to be cancelled.

Seller’s duties and rights :

(BEFORE SALE )

  • to disclose material defects in the property or title, if any.
  • to produce the title-deeds for inspection.
  • to answer relevant questions as to title.
  • to execute conveyance.
  • to take care of the property and title-deeds.
  • to pay the outgoings.

(AFTER SALE)

  • to give possession to the buyer.
  • to covenant for title.
  • to deliver title-deeds on receipt of the price.

Buyer’s rights and duties :

(BEFORE SALE)

  • to disclose facts which materially increases the value of property.
  • to pay the price.

(AFTER SALE)

  • to bear the loss to property, if any.
  • to pay the outgoings.

DIFFERENCE BETWEEN CONTRACT FOR SALE AND SALE :

Topic 9. Sale of immovable property