Duties and Rights of a Seller Under the Transfer of Property Act

The seller’s duties and rights are spelled out in the contract, which is talked about and signed by both parties (buyer and seller). If there is no such agreement, Section 55 of the Transfer of Property Act of 1882 tells the seller what he or she has to do and what rights they have.

• To tell the potential buyers of the property about any major flaws that they may not know about or may not be able to spot in the normal course of events. A material defect is a problem with a part or system of a residential property that could hurt the value of the property or pose an unreasonable risk to the residents. This could be something like a large leak that is only temporarily hidden, an unstable foundation, etc.
• At the buyer’s request, you must show him or her all documents of title that are related to the property and are in your possession or easy for you to get and show.
• To answer all of the buyer’s real and relevant questions about the property or its title as best you can, based on what you know.
• To make a deal with the buyer that says your interest in the property, which you plan to give to the buyer, will stay the same after the transfer. Also, the buyer would get the power to give the property to someone else if he or she wanted to.
• To pay and get rid of any government fees (like property taxes) or other liens (like a home loan) that have been put on the property up until the date of sale.
• To take good care of the property and all title documents between the date of the contract of sale and the date the property is given to the buyer.

After the sale is done, give possession of the property to the buyer or whoever the buyer tells you to.

• Give the buyer all the documents related to the title that you have or can get, after getting the full price for the property.
• Before the sale takes place, a seller has certain rights.
• To get the profit and rent money that come from a seller’s property rights after the sale of the property.
• To a charge or lien on the property in a situation where the buyer takes ownership of the property before the seller gets paid the full sale price for the property.
• Aside from these duties and rights, which are usually included in the “Sale Agreement” you make with the buyer. it would be smart to add a penalty clause to the same. This clause says that you can’t get your earnest or token money back if the buyer doesn’t pay the rest of the money on time or backs out of the deal. Usually, earnest or token money is 10 to 20% of the total sale price of the property.

You should spend some time learning about your responsibilities and rights as a seller. so you know what is expected of you and what your rights are during the selling process.

To a charge or lien upon the property in such a situation where the ownership of the property is transferred to the buyer. before the payment of the full sale price for the property is made to the seller.

Apart from these duties and rights of yours, which are usually reflected in the ‘Sale Agreement’ you enter into with the buyer. it would be prudent to add a penalty clause in the same. According to this clause, any earnest or token money (usually 10 to 20 percent of the total sale price of the property) paid to you by the buyer will be non-refundable. In case the buyer does not pay the remaining amount to you on time or backs out of the deal. To read more on the ‘Sale Agreement’, click here.

It would be advisable to take some time to study your duties and rights as a seller so that you are informed about what is expected from you and what are your rights during the selling process.

Disclaimer: The opinions shown above are mainly for informational reasons and are based on market research. Deal Acres is not responsible for any actions made as a result of relying on the provided material and makes no representations as to its accuracy, completeness, or reliability.