EMMANUEL AMARFIO MENSAH

19GSOL1030099

19041030091

PROPERTY LAW IA 4

Question: explain with reference to relevant provision and cases the rights and duties of a seller

DUTY OF SELLER

According to section 55(1) of transfer of property act 1882

Duty to Reveal Fault- to disclose to the buyer any material defect in the property 1[or in the seller’s
title thereto] of which the seller is, and the buyer is not, aware and which the buyer could not with
ordinary care discover; In the Case “Ganpat Ranglal V/s Mangilal Hiralal” High Court held that the
seller is not bound to disclose such faults which is really known by buyer or otherwise he is in know
of the information.

Duty to Submit Document- to produce to the buyer on his request for examination all documents of
title relating to the property which are in the seller’s possession or power;

Liability to Submit Document as to Entitlement:- to answer to the best of his information all relevant
questions put to him by the buyer in respect to the property or the title thereto; in the case of
Laxmidas & Company V/s D.J. Tata it has been held by the Mumbai high court that if the seller does
not answer for such questions then the contract may be rescinded by the buyer.

Duty to Excecute Conveyance- on payment or tender of the amount due in respect of the price, to
execute a proper conveyance of the property when the buyer tenders it to him for execution at a
proper time and place;

Duty to Protect Document- between the date of the contract of sale and the delivery of the
property, to take as much care of the property and all documents of title relating thereto which are
in his possession as an owner of ordinary prudence would take of such property and documents.

Duty to Deliver up Occupation- to give, on being so required, the buyer, or such person as he directs,
such possession of the property as its nature admits; in the case Darpan V/s Kedar Nath it has been
held that if Seller does mistakes in delivering up to possession the buyer can file a suit against seller.

to pay all public charges and rent accrued due in respect of the property up to the date of the sale,
the interest on all encumbrances on such property due on such date, and, except where the
property is sold subject to encumbrances, to discharge all encumbrances on the property then
existing.

RIGHT OF SELLER

According to section 55(4) of transfer of property act 1882

Right to get Rent and Profit- to the rents and profits of the property till the ownership thereof passes
to the buyer.

Right to get Interest on Unpaid buying money:-where the ownership of the property has passed to
the buyer before payment of the whole of the purchase-money, to a charge upon the property in
the hands of the buyer, any transferee without consideration or any transferee with notice of the
non-payment, for the amount of the purchase-money, or any part thereof remaining unpaid, and for
interest on such amount or part from the date on which possession has been delivered. In “Subba
Rao V/s Vasudev Shastri” the A.P High Court decided that the seller is entitled to get interest on
selling-money only when the possession of sold property is given to buyer.
EMMANUEL AMARFIO MENSAH

19GSOL1030099

19041030091

PROPERTY LAW IA 2

Question: explain in reference to important cases the duties and rights of a buyer

DUTY OF BUYER

According to section 55(5) of transfer of property act 1882

Duty to disclose facts– To disclose to the seller any fact as to the nature or extent of the seller’s
interest in the property of which the buyer is aware, but of which he has reason to believe that the
seller is not aware, and which materially increases the value of such interest. In the case of Hazi isha
V/s Daya Bhai (A.I.R 1896 mumbai 522) it has been held that it is the duty of the buyer that he
should provide all information related to ownership which he is in know, to the seller. This
arrangement is based on the principle of equity and relations of believe between buyer and seller.

Duty of payment of purchase money- To pay or tender, at the time and place of completing the sale,
the purchase-money to the seller or such person as he directs: provided that, where the property is
sold free from encumbrances, the buyer may retain out of the purchase-money the amount of any
encumbrances on the property existing at the date of the sale, and shall pay the amount so retained
to the persons entitled thereto.

Duty to bear damages– where the ownership of the property has passed to the buyer, to bear any
loss arising from the destruction, injury or decrease in value of the property not caused by the seller.

Duty to pay due amount- where the ownership of the property has passed to the buyer, as between
himself and the seller, to pay all public charges and rent which may become payable in respect of
the property, the principal moneys due on any encumbrances subject to which the property is sold,
and the interest thereon afterwards accruing due. In the case of Gangi V/s Govinda it was held that
the buyer is liable to pay all the charges after sale. Due amount includes revenue, principal, interest
etc.

RIGHTS OF BUYER

According to section 55(6) of transfer of property act 1882

Right to get Benefits and Rents- where the ownership of the property has passed to him, to the
benefit of any improvement in, or increase in value of, the property, and to the rents and profits
thereof; in “Achtak V/s Parmeshwar” it was decided that the buyer is entitled to get benefits of the
maintenance done by seller.

Right to get Interest-unless he has improperly declined to accept delivery of the property, to a
charge on the property, as against the seller and all persons claiming under him, to the extent of the
seller’s interest in the property, for the amount of any purchase-money properly paid by the buyer
in anticipation of the delivery and for interest on such amount; and, when he properly declines to
accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to
compel specific performance of the contract or to obtain a decree for its rescission.
EMMANUEL AMARFIO MENSAH

19GSOL1030099

19041030091

PROPERTY LAW IA 3

Question: explore the definition of immovable property with reference to case law and highlight the
provisions concerning registration with reference to Indian registration act 1908

As per Section 3(25), General Clauses Act, 1897 Immovable property shall include land, benefits to
arise out of land and things attached to the earth, or permanently fastened to anything attached to
the earth.

The Indian Registration Act expressly includes under to immovable property the benefits to arise out
of land, hereditary allowances, rights of way, lights, ferries and fisheries.

In the case of Sukry Kurdepa v. Goondakull (1872) court has explained that movability may be
defined to be a capacity in~ a thing of suffering alteration. On the other hand, if a thing cannot
change its place without injury to the quality it is immovable.

Registration of the documents of sale and purchase of immovable property is mandatory and
ensures conservation of evidence, prevention of fraud and assurance of title. The provision of the
Registration Act, 1908 provides for the registration of various documents, to ensure conservation of
evidence, prevention of fraud and assurance of title.

As per Section 17 of the Registration Act, 1908, all transactions that involve the sale of an immovable
property for a value exceeding Rs 100, should be registered. This effectively means that all the
transactions of sale of immovable property have to be registered, as no immovable property can be
purchased for merely Rs 100.
EMMANUEL AMARFIO MENSAH

19GSOL1030099

19041030091

PROPERTY LAW IA 4

Question: i) what is the difference between contingent and vested interest.

ii) illustrate with the help of examples and decode the term conditional transfer.

I) When on the transfer of a property the interest is created in favour of the transferee immediately
or there is present right of possession with the transferee, it is called as vested interest. Such a
vested interest exists even if the right to enjoyment in the property is delayed to a future date.

For example, A transfers his house to B for life and after his death to C. C will acquire a vested
interest in the house on the death of B which is a certain event.

Whereas when on the transfer of property the interest created in favour of the transferee depends
on a contingent event which may or may not take place, such contingent interest becomes vested in
the person on fulfilment of the specific condition.

For example, A agrees to transfer his house to B, provided B constructs a well in a village. Whether B
constructs a well in the village is an uncertain condition which may or may not take place. If B
constructs the well, B acquires interest in A’s house.

ii) Section 25 of the Transfer of Property Act, 1882 provides for Conditional Transfer. It means that
any transfer that happens on the fulfilment of a condition that is imposed on the other party for the
transfer of property. Conditional transfer is an interest created on a transfer of property and
dependent upon a condition fails if the fulfilment of the condition is impossible, or is forbidden by
law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is
fraudulent, or involves or implies injury to the person or property of another, or the court regards it
as immoral or opposed to public policy.

For example, A agrees to transfer his property to B if he gets selected for a job. The requirement of A
for B to get a job is called a condition.