Sale under Transfer of Property Act by Samidha Hegde@Lexcliq

Sale (Sn.54 T.P.Act) is a transfer of ownership in exchange for a price paid or promised or part-paid and part promised. Sale of immovable property can be made by a registered deed if the value is Rs.100/- or above. Delivery of the property takes place, when the buyer is placed in possession of the property. Contract for sale is an agreement to sell. It is a Contract for sale of the immovable property on terms settled by parties. This by itself will not create any charge or interest in the property.


Sale just methods buying and selling of goods and services, under Transfer of Property Act, 1882 the Sale is of immovable property.

Section 3 of the Act is the Interpretation-clause, which accommodates the significance of key phrasings-

Immovable property – does exclude standing wood, developing yields or grass.

Instrument – implies a non-testamentary instrument. The instrument is a composed document, a formal or legal document recorded as a hard copy, for example, contract, deed, bond or rent or anything decreased to writing.

Registered – register is a book containing a record of facts as they happen, kept by open power. A document can’t be said to have been appropriately registered if the enlistment has been made in negation of the provisions of the Registration Act.

Attached – is a term depicting the actual association of two in any case autonomous structures or objects, the connection between two pieces of a solitary construction, each having its capacity.


Following are the essentials of a valid sale under TPA:

The seller must be a person competent to transfer. The seller should be either the owner of the property or should have the authority to dispose of it.

The buyer must be a person competent to the transferee.

The subject matter must be a transferable immovable property which can be tangible or intangible.

There must be a transfer of ownership

The transfer must be in exchange for a price. ‘Price’ in the ordinary sense connotes money consideration for the sale of the property. The price must be paid or promised or partly paid.

a) Duties of seller: The seller is bound

i) to disclose to the buyer any material defect in the property, which the seller is aware and which cannot be discovered with ordinary care by the buyer, (caveat emptor). Otherwise it becomes fraudulent.

ii) to produce to the buyer all documents of title relating to the property.

iii) to answer all relevant questions relating to the title etc. of the property.

iv) to execute a sale deed when the buyer renders the price.

v) to take care of the property from the date of agreement until the date of the sale.

vi) to give possession to the buyer.

vii) to pay all public charges and rents due upto the date of the sale: he should also discharge encumbrances, if any, unless the sale is made subject to any encumbrances.

viii) There is a warranty that the seller has the power to transfer and also professes that interest which he is transferring.

ix) When the sale price is fully paid-up the seller is bound to deliver all the documents of title, to the buyer.

b) Rights of the seller

: i) He is entitled to all the rents and profits of the property till the ownership passes to the buyer.

ii) Vendor’s lien: a) When the buyer has become the owner and b) When the sale price has not been fully paid, the Vendor gets a charge over the property for amounts unpaid by the buyer. Ch. 14-3 Rights and duties of the buyer.

(a) Buyer’s duties. The buyer is bound

i) To disclose to the seller any fact which would materially enhance the value of the property; otherwise it becomes fraudulent.

ii) To pay or tender the price at the time and place to complete the sale. He may adjust pre-paid or earnest money if any.

iii) Where the property has passed to the buyer, the buyer becomes liable for any loss or destruction to the property. Further as between the seller & buyer, the buyer should pay public charges and rents which may become payable.

(b) Rights of the buyer

i) The buyer is entitled to any benefit and increase in the value, rents etc, after the property has passed on to him.

ii) The buyer has a charge on the advances made in anticipation of the delivery and for interest on such advances




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