Answer prepared by Shreyan Acharya, Researcher at Lawfarm:
The property transferred from one person to another is mandated by the Transfer of Property Act,
[1]1882. The Act covers the procedures and requirements for the sale of property.
Section 54 defines “sale”.
[2] Section 54 further explains the method how the sale is completed. For the completion of the sale, certain requisites need to be fulfilled.
The essential elements for sale are:
- parties to the sale
- subject matter of sale
- price and mode of executing the sale.
In the present case, the property has been transferred in accordance with Section 54 of the Act
[3], as the sale is executed after undertaking the valid sale deed and registration with the competent authority.
The Court
[4] has observed that in a sale,
the three requirements of law are that transfer of property by sale must take place with the help of a validly executed sale deed, by the transferor in writing, is properly attested, and registered. If these requirements have been carried out, then in your case, the sale is a valid one.
The Act further states the rights and liabilities of both the buyer and seller under
Section 55[5].
The law imposes certain duties upon the seller, which the seller is bound to follow. The seller is required to
allow the buyer to examine documents relating to property on request. The seller under law is bound to
produce the documents, at buyer’s request, for inspection. It is the duty of the seller to
undertake all the formalities for the transfer of property. Conveyance of a clear and a good title and delivery of the property free from encumbrances, is the basic duty of the seller. That means, the property he is selling should be
free of pending taxes, law suits or any such issues.
Any extra amount demanded by the seller is against the law and refusal to execute on non-payment is invalid in the eyes of law.
Hence, based upon the provided information, it is suggested that any extra amount must not be paid, and proper mode of resolving the matter through negotiation must be undertaken. And, if the matter is not resolved and moved to litigation, then the action of the buyer will be in all likelihood deemed against law, by the court.
[1] Transfer of Property Act, 1882
[2] Section 54 of the TP Act, 1882, “sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
[3] Transfer of Property Act, 1882
[4] Munnalal v Atmaran AIR 2008 (NOC) 843 MP
[5] Transfer of Property Act, 1882
