Reena owned a duplex apartment in a posh locality in Mumbai. She had purchased the property when she held a well-paying job. But during the recession, she lost her job and so found it difficult to maintain the property. As she couldn't look after the flat, she decided to sell it. But as she was a first time seller, the buyer as well as broker exploited her ignorance. She was forced to sell her property for a loss.
So if you are in this situation, what should you do? Answer: Familiarise yourself with Transfer of Property Act. The rights and duties you have are outlined in the Transfer of Property Act.
When you decide to sell your property, you enter in a contract with the buyer of your property. But in case you have failed to prepare such a contract, your rights and duties are clearly defined by this act. Here we take a look at what this act entails for you.
When you are selling the property, it is your moral duty to tell all the details like the problem with the property or clear title of the property, to the buyer. Usually, these details should be the ones that are mostly ignored but vital to the buyer.
You should hand over all the papers related to the property to the buyer, as soon as you get the full amount from him. You need to carry out a suitable delivery of property to the buyer, once you get the money. Also till you actually hand over the property, look after the property and property documents very carefully.
You should be ready to hand over the property to the buyer or his representative, whenever directed. Until the sale is not finished, you are obliged to bear all government charges and rent due to the property as well as the interest on loans on property, if any.
You should be ready to hand over all the paperwork related to the property to the buyer, whenever asked. But you are exempted from this rule under 2 circumstances: either you have clarified in the agreement with the buyer that you'll retain a portion of the property or you have sold the property to various buyers, in which case, the buyer who has bought the property with the highest value can keep the papers.
In the latter case, you can show the documents and handover true copies or extracts according to the demands from other buyers. But don't worry. The act does not outline your duties. It also confers on you certain rights.
For one, any income accrued from the property is yours till you don't actually handover the property to the buyer. Also till you don't get the full amount, you can collect the charges on the property for the outstanding amount. Moreover, you can collect interest on the amount due from the date on which you have handed over the possession to the buyer.
It is important for you to acquaint yourself with these rights and duties before you decide to sell your property. Your deal will go smoothly without any hiccups. Had Reena been aware of this act, she could have saved herself from being exploited.
