Sale under Transfer of Property
Concept of Sale under TPA
sale under Transfer of Property Act, 1882
What is a “Sale”?
Sec. 54
of the TPA, 1882
A “Sale” is defined as the transfer of ownership in exchange for a price. This price can be paid in full, promised to be paid later, or be a combination of both. It’s an absolute transfer, permanently moving all rights from the seller to the buyer.
The Four Pillars of a Valid Sale
Parties
A competent Seller (transferor) and Buyer (transferee) are required.
Subject Matter
The sale must involve transferable property (movable or immovable).
Transfer of Ownership
Absolute ownership and all rights must be transferred to the buyer.
Price
Consideration must be in the form of money (paid or promised).
Making it Official: Mode of Execution
The legal process for finalizing a sale of immovable property depends on its value. This flowchart illustrates the mandatory steps for a legally valid transfer.
Property Value < ₹100
Can be completed by:
Property Value ≥ ₹100
Must be completed by:
(Sale Deed executed, attested, and registered)
The Seller’s Rulebook
The seller has significantly more legal duties before the sale is finalized compared to after. This includes disclosing defects, producing title deeds, and caring for the property.
Seller’s Rights & Liabilities
Liabilities (Duties)
- Before Sale: Disclose defects, produce titles, answer questions, care for property, pay outgoings.
- After Sale: Give possession, guarantee title, deliver title deeds.
Rights
- Before Sale: Entitled to rents and profits.
- After Sale: Can place a lien on property for unpaid price.
The Buyer’s Playbook
The buyer’s responsibilities and rights are balanced. Key duties include paying the price, while major rights include receiving all future benefits and improvements to the property.
Buyer’s Rights & Liabilities
Liabilities (Duties)
- Before Sale: Disclose facts that increase value, pay the price.
- After Sale: Bear property losses, pay future outgoings.
Rights
- Before Sale: Charge on property for price paid if sale fails.
- After Sale: Entitled to improvements, rents, and profits.
