Seller’s Responsibilities During Transfer of Property
Section 54 of Transfer of Property Act 1882 defines ‘Sale’ as the transfer of ownership of property in exchange for a price promised, paid, part-promised or part-paid. The section discusses the responsibilities of the seller during the transfer of property. These responsibilities are listed below:
- On request for examination by the buyer, the seller must disclose all documents of the title that are related to the property.
- If there are material defects in the property, the seller must ensure to disclose them to the buyer.
- Between the date of the contract of sale and delivery of the property, the seller must take good care of the property and all related documents in his possession, in the same way, that the owner would.
- The seller must release all encumbrances on the property that exist at that time.
- The seller must completely transfer the possession of the property to the buyer.
- The seller must, to the best of his information, answer all relevant questions put forth by the buyer with respect to the title or property.
- The seller must pay the rent and all public charges accrued in connection with the property up to the date of sale.
- The seller must perform the process of property transfer at a place and time proposed by the buyer on tender or payment of the amount due in accordance with the price.
Buyer’s Responsibilities at the Time of Transfer of Property
When purchasing a property, the buyer has to take care of his/her responsibilities as part of the process. These duties include:
If the buyer knows certain facts about the property that the seller is not aware of or the buyer believes the seller is not aware of (for some reason), which materially increases the value of such interest, then the buyer must disclose this information to the seller.
When the property ownership has been transferred to the buyer, the buyer must bear any loss arising from the injury, destruction or decrease in property value for which the seller is not responsible.
The buyer must pay the purchase price to the seller at the place and time of completion of the sale.
When the property ownership has been transferred to the buyer, the buyer must pay the principal funds due on any encumbrances subject to which the property is sold, the interest thereon accruing due, and the rent and all public charges which may become payable on the property.