Some rights a buyer of property has been given by the Transfer of Property Act

Abuyer of a property has some rights and liabilities. According to the Transfer of Property Act, a buyer of a property is entitled to some rights and has some responsibilities, which need to be fulfilled statutorily.

• Interest of seller

A buyer is bound to disclose to the seller any fact about the nature or extent of the seller's interest in the property of which the buyer is aware, but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest. An omission to make such a disclosure is fraudulent.

• Payment

The buyer is liable to pay, at the time and place of completing the sale, the purchase money to the seller or such person as he directs. The payment should be as per the agreed terms and conditions. Where the property is not sold free of encumbrances, the buyer may retain out of the purchase money the amount of any encumbrances on the property existing at the date of the sale, and should pay the amounts so retained to the persons entitled to it, to get the encumbrance released.

• Charges

The buyer is liable to pay all public charges and rent which may become payable in respect of the property, the principal money due on any encumbrance subject to which the property is sold, and the interest due. Once the ownership has been transferred to the buyer, the buyer is liable to pay all the statutory charges like municipal taxes, property taxes, cess, electricity and water charges etc.

• Loss or damage

After the ownership of the property has passed to the buyer, he has to bear any loss arising from damage or decrease in value of the property, not caused by the seller. The buyer becomes liable for any loss or damage to the property as soon as he becomes the owner and the seller ceases to be the owner of the property.

The buyer is also entitled to a charge on the property, against the seller, to the extent of the seller's interest in the property, for the amount of any purchase money paid by the buyer in anticipation of delivery. In case of a default by the seller the buyer has a right to get back the advance paid plus reasonable interest. He may also compel the seller for specific performance of the agreement.

• Benefit of improvements

The buyer also has some rights given statutorily by the Transfer of Property Act. In case the ownership of the property has passed to the buyer, he is entitled to the benefits of any improvements that increase the value of the property, and to rent and profits from the property. Any benefits or increase in value of the property accrues to the buyer only and not the seller.

All these rights given by the Act can be enforced as they are bestowed by the statute. However, the operation of such rights and liabilities may be modified by the contracting parties, subject to mutually agreed conditions.

The markets follow a cyclic pattern. Around eight months ago, it was a seller's market. Real estate prices had pinnacled and were unaffordable to many. Today, it is a buyer's market. Developers are wooing customers with bargain deals and innovative offers. Is it time to clinch a great deal and own that dream house?

Investors dread the inflation monster that erodes hard-earned money. Buying a property is a wise decision for those who are prepared to stay invested for a long term. Real estate has yielded a compounded return of over 20 percent per annum over a long term. In cases even more. Perhaps that's the reason why it is considered an effective tool to beat inflation.

People paying a huge rent month after month must contemplate buying their own home. By paying EMIs to the lender instead of rent, you can own the house in the next 20 years. Interest rates are sliding to single digits making borrowing a less painful experience.

Investment in property calls for tremendous caution. The property's title needs thorough investigation. Location of the property is another vital issue. You can buy a larger house for the same money on the outskirts of the city, than in the heart of the city. However, a location far away from city may lack in the amenities you need. A property located in a prime residential area appreciates faster and has greater resale value. Factor in condition of the building, parking, neighborhood, safety and water quality.

Bargain deals from developers are the best bait that prospective home buyers must consider. Unheard of deals and offers are on the platter.

pulled up the cost of construction. Interest rates on home loans had crossed double digits and land prices had sky rocketed. The mood in the realty sector is upbeat. People who had procrastinated on their decision to invest in property are reconsidering their decision. With ever-increasing population and ever mounting demand for housing and office space, property values are set to appreciate.

Bear in mind a long term investment perspective. Add realty to your portfolio and beat the inflation monster.