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.

Some rights a mortgagee of property has in the case of a mortgage contract

A mortgage is the transfer of interest in a property to secure payment of money advanced. The transferor is called a mortgagor. The transferee is called a mortgagee. The principal money and interest secured are called as mortgage money. The instrument by which this transfer is effected is called mortgage deed. The provisions related to mortgage of property are contained in the Transfer of Property Act.

A mortgage can be of various types. These include simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds and anomalous mortgage.

A mortgagee can take possession of mortgaged property in case of default. Under the Transfer of Property Act, if there is default in payment of mortgage money, the mortgagee can take possession of mortgaged property and sell it without intervention of a Court only in case of English mortgage. In addition, a mortgagee can take possession of mortgaged property where there is a specific provision in the mortgage deed and the mortgaged property is situated in Kolkata, Chennai or Mumbai. In other cases, possession of property can be taken only with the intervention of a Court.

English mortgage


It is a type of mortgage where the mortgagor binds himself to repay the mortgaged money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a provision that he will re-transfer the property to the mortgagor upon payment of the mortgage money as agreed. This is also called registered mortgage.

This is the safest form of mortgage for a bank. No documents of the property are required to create this kind of a mortgage. The borrower just needs to enter into a mortgage deed with the bank which needs to be stamped and registered in order to make it enforceable. However, this is an expensive way to create a mortgage as charges have to be borne by the borrower for stamping and registration. Further, the mortgagor binds himself to repay the money at a certain date and transfers property absolutely to the mortgagee subject to the condition that he will re-transfer it to the mortgagor on payment of the mortgaged money.

A mortgagee has a right to sue for the mortgage money in these cases:

• Where the mortgagor binds himself to repay.
• Where the mortgaged property is wholly or partially destroyed or the security is rendered insufficient. The mortgagee must have given the mortgagor a reasonable opportunity to provide further security to render the security sufficient and the mortgagor has failed to do so.
• Where the mortgagee is deprived of his security due to a wrongful act or default of the mortgagor.
• Where the mortgagor has failed to deliver possession of the property to the mortgagee.

If a suit is brought, the Court may stay the suit and all proceedings until the mortgagee has exhausted all his available remedies against the mortgaged property, unless the mortgagee abandons his security and re-transfers the mortgaged property.

Section 67 of the Act gives the mortgagee the right to foreclosure or sale. As per this provision, in case the mortgage money has become due to the mortgagee, before a decree has been made for the redemption of the mortgaged property, the mortgagee has a right to obtain a decree from the Court that the mortgagor be absolutely debarred of his right to redeem the property, or a decree that the property be sold. This suit to obtain a decree that the mortgagor be absolutely debarred of his right to redeem the mortgaged property is called a suit for foreclosure.

Registration must while gifting property - Some conditions to make a valid gift of property

A gift of property may be made within the family by a father to his son, daughter, wife or brother. It can also be made by a mother to her son or daughter and from grandparents to their grandchildren. The gift should be made through a registered document signed by the donor or on behalf of the donor, attested by at least two witnesses. An authorised representative of the donor may also make a gift. The authorisation, i.e., the power of attorney (POA) given to the representative, should be clear about the provision for making a gift. The power of attorney should be properly stamped as per the applicable laws.

A gift has to be made in writing and needs to be registered. A proper gift deed needs to be executed between the donor and the donee. The Transfer of Property Act stipulates that the acceptance has to be made during the lifetime of the donor and when the donor still capable of giving a gift. As the gift deed needs to be registered, the acceptance of the gift is usually recorded on the gift deed itself.

In certain circumstances, a gift can be suspended or revoked. It depends on the contents and conditions of the gift deed. Both the donor and donee must agree to such conditions.

A gift may be cancelled or rescinded on these grounds:

• On occurrence of any event which is specified in the gift deed
• Both the parties should have accepted the conditions and the donee should have agreed to such conditions while accepting the gift
• The proposed event, which suspends or revokes the gift, should be beyond the control and will of the donor
• The condition should not be illegal or immoral There should be absence of any kind of consideration.

Although there is no consideration received against a gift, it attracts stamp duty and registration changes as applicable to a sale deed. However, there is some concession for a gift to family members (spouse, son, daughter, daughter-in-law and grandchildren). The maximum stamp duty is Rs 1,000 and an additional cess of Rs 50 plus infrastructure cess. The registration fee is Rs 500 in such cases.

A document of gift of property is compulsorily registrable. A gift is given on consideration of affection, and no monetary consideration is involved. So, any gift deed irrespective of the value of the property gifted needs registration.

Sometimes, a gift is made to two or more persons and any one of them may not accept the gift. For example, a gift may be made by a father to his son and daughter, and the daughter may refuse to accept the gift. In such a case, where one of the donee does not accept the gift, the gift is not invalid completely. The gift becomes inoperative and void for the donee who does not accept it. The other donee who accepts the gift is entitled to what is gifted to him only. One donee will not have any rights, interests, or title to the property which was not accepted by another donee. Only the portion gifted to a donee belongs to him and the unaccepted portion reverts to the donor.