2. Essentials of valid sale
• The parties: Seller and Purchaser:
Competence
• Subject Matter: The Property is in existence
• Money Consideration: The Price
• Conveyance: Mode of Transfer
Delivery of
Possession
Registration
of Sale-deed
3. Seller’s Duties (Sec. 55)
• Before Sale
1. Disclose the material defect [Sec. 55 (1) (a)]
2. Produce the title-deeds for inspection [Sec. 55 (1) (b)]
3. Answer relevant questions as to title [Sec. 55 (1) (c)]
4. Execute conveyance [Sec. 55 (1) (d)]
5. Take care of the property and title deeds [Sec. 55 (1) (e)]
6. Pay the outgoings [Sec. 55 (1) (g)]
Latent
Defect
Material
Defect
4. Seller’s Duties
• After Sale
1. To give possession to the buyer [Sec. 55 (1) (f)]
2. To covenant for title [Sec. 55 (2)]
3. To deliver title-deeds [Sec. 55 (3)]
Where the seller retains
greater part of the property
Property is sold to several
buyers
5. Seller’s Right [Sec. 55 (4)]
• Before Sale [Sec. 55(4)(a)]
Rents, profits or other beneficial interest of the property
• After Sale [Sec. 55(4)(b)]
Right of lien/charge
6. Buyer Duties [Sec. 55 (5)]
• Before Sale
1. To disclose facts which materially increase the value of
the property [Sec. 55 (5) (a)]
Only those facts which relate to title of interest of the buyer
2. To pay the price [Sec. 55 (5) (b)]
7. • After Sale
• To bear the loss to property, if any [Sec. 55 (5)
(c)]
• To pay the outgoings[Sec. 55 (5) (d)]
8. Buyer’s Right
• Before Sale: Buyer’s Charge [Sec. 55 (6)(b)]
Charge is enforceable not only against seller
but also against claiming under him
Buyer’s own default
Possession already with the buyer
• After Sale [Sec. 55 (6)(a)]
All the benefits arising out of property
