Rights & Duties of Seller

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Rights & Duties of Seller

 

Before completion of the sale – i.e., before ownership has passed to the buyer:

 

The seller is entitled to all the rent arising out of the property till the ownership passes to the buyer.

 

After completion of the sale – i.e., after ownership has passed to the buyer:

 

The seller has a claim on the property for the unpaid consideration (the money that is still not paid as per the agreement), when the property is in the hands of:

  1. The buyer (this means the buyer cannot sell the property to a third party before clearing his unpaid dues to the persons/ he bought the property from).
  2. Any person to whom the buyer has transferred the property without consideration (receiving money).
  3. Any person to whom the buyer has transferred the property and who is aware of the non-payment of the consideration (balance amount).

 

Duties and liabilities of a Seller

 

Before completion of the sale:

 

  1. to disclose to the buyer any material defect in the property 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;
  2. to produce to the buyer on his request for examination all documents of title relating to property which are in the seller’s possession or power;
  3. 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;
  4. on payment or tender of the amount due in respect of the price, to execute a property conveyance of the property when the buyer tenders it to him for execution at a proper time and place;
  5. 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;
  6. To co-operate with the buyer in completing the sale.

 

After completion of the sale:

 

The Seller is bound:-

 

  1. to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits;
  2. 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;
  3. The seller shall be deemed to contract with the buyer that the interest which the seller professes to transfer to the buyer subsists and that he has power to transfer the same:
    Provided that, where the sale is made by a person in a fiduciary character, he shall be deemed to contract with the buyer that the seller has done no act whereby the property is encumbered or hereby he is hindered from transferring it;
  4. Where the whole of the purchase-money has been paid to the seller, he is also bound to deliver to the buyer all documents of title relating to the property which are in the seller’s possession or power;
  5. to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits;