Rights and liabilities of buyer and seller
Section 55 of the Transfer of Property Act, 1882 deals with rights and liabilities of buyer and seller. In the absence of a contract to the contrary, the buyer and the seller of immoveable property respectively are subject to the liabilities, and have the rights, mentioned in the rules next following, or such of them as are applicable to the property sold: (1) The seller is bound-- (a) to disclose to The Act came into force on 01 Jul 1882.
In the absence of a contract to the contrary, the buyer and the seller of immoveable property respectively are subject to the liabilities, and have the rights, mentioned in the rules next following, or such of them as are applicable to the property sold:
(1) The seller is bound--
(a) to disclose to the buyer any material defect in the property 1[or in the seller's title title thereto] of which the seller is, and the buyer is not, aware, and which the buyer could not with ordinary care discover;
(b) to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller's possession or power;
(c) to answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto;
(d) on payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a proper time and place;
(e) between the date of the contract of sale and the delivery of the property, to take as much care of the property and all documents of title relating thereto which are in his possession, as an owner of ordinary prudence would take of such property and documents;
(f) to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits;
(g) to pay all public charges and rent accrued due in respect of the property up to the date of the sale, the interest on all incumbrances on such property due on such date, and, except where the property is sold subject to incumbrances, to discharge all incumbrances on the property then existing.
(2) The seller shall be deemed to contract with the buyer that the interest which the seller professes to transfer to the buyer subsists and that he has power to transfer the same .
Provided that, where the sale is made by a person in a fiduciary character, he shall be deemed to contract with the buyer that the seller has done no act whereby the property is incumbered or whereby he is hindered from transferring it.
The benefit of the contract mentioned in this rule shall be annexed to, and shall go with, the interest of the transferee as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.
(3) Where the whole of the purchase-money has been paid to the seller, he is also bound to deliver to the buyer all documents of title relating to the property which are in the seller's possession or power:
Provided that, (a) where the seller retains any part of the property comprised in such documents, he is entitled to retain them all, and, (b) where the whole of such property is sold to different buyers the buyers, of the lot of greatest value is entitled to such documents. But in case (a) the seller, and in case (b) the buyer of the lot of greatest value, is bound, upon every reasonable request by the buyer, or by any of the other buyers, as the case may be, and at the cost of the person making the request, to produce the said documents and furnish such true copies thereof or extracts therefrom as he may require; and in the meantime, the seller, or the buyer, of the lot of greatest value, as the case may be, shall keep the said documents safe, uncancelled and undefaced, unless prevented from so doing by fire or other inevitable accident.
(4) The seller is entitled--
(a) to the rents and profits of the property till the ownership thereof passes to the buyer;
(b) where the ownership of the property has passed to the buyer before payment of the whole of the purchase-money, to a charge upon the property in the hands of the buyer, 2[any transferee without consideration or any transferee, with notice of the non-payment], for the amount of the purchase-money, or any part thereof remaining unpaid, and for interest on such amount or part 2[from the date on which possession has been delivered].
(5) The buyer is bound--
(a) to disclose to the seller any fact as to 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;
(b) to pay or tender, at the time and place of completing the sale, the purchase -money to the seller or such person, as he directs: provided that, where the property is sold free from incumbrances, the buyer may retain out of the purchase-money the amount of any incumbrances on the property existing at the date of the sale, and shall pay the amount so retained to the persons entitled thereto;
(c) where the ownership of the property has passed to the buyer, to bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller;
(d) where the ownership of the property has passed to the buyer, as between himself and the seller, to pay all public charges and rent which may become payable in respect of the property, the principal moneys due on any incumbrances subject to which the property is sold, and the interest thereon afterwards accruing due.
(6) The buyer is entitled--
(a) where the ownership of the property has passed to him, to the benefit of any improvement in, or increase in value of, the property, and to the rents and profits thereof;
(b) unless he has improperly declined to accept delivery of the property, to a charge on the property, as against the seller and all persons claiming under him 3*** to the extent of the seller's interest in the property, for the amount of any purchase-money properly paid by the buyer in anticipation of the delivery and for interest on such amount; and, when he properly declines to accept the delivery, also for the earnest (if any) and for the costs (if any) awarded to him of a suit to compel specific performance of the contract or to obtain a decree for its rescission.
An omission to make such disclosures as are mentioned in this section, paragraph (1), clause (a), and paragraph (5), clause (a), is fraudulent.
Section 55, The Transfer of Property Act, 1882 (Act 4 of 1882).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Kaliaperumal v. Rajagopal
Court's Decision & Legal Precedent
Judgment order-6.pdf 2009-02-20 (Panchal & Raveendran JJ.). Tool DATE-CHECK FP on 1983 fact dates inside reportable — body is Kaliaperumal reportable. Isolates TP Act s.55(4)(b): unpaid seller retains charge on property for price; intention that title pass only on full payment. Map TP 55 only (s.54 already filled).
On this section: s.55(4)(b) unpaid seller charge / intention that title pass only on full payment.
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Birma Devi vs Subhash
Court's Decision & Legal Precedent
In a suit for specific performance of a contract of sale where the exclusive possession of the suit property is with the contracting party (original owner), a decree for specific performance simpliciter, without specifically providing for delivery of possession, gives complete relief to the decree holder and the executing court is under an obligation to hand over possession of the suit property to the decree holder. This principle flows from Section 55(1) of the Transfer of Property Act, 1882, which binds the seller to transfer possession to the buyer. However, in cases where the property is jointly held by the defendant with other persons or has passed into possession of a third party after the contract, the plaintiff must separately claim relief for possession, partition, or separate possession, as the case may be, and such amendment can be allowed at any stage of proceeding, including the execution stage.
On this section: Provides that seller is bound to give, on being required, the buyer such possession of property as its nature admits. This principle supports granting possession in specific performance decrees even without express relief.
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Andhra Pradesh Indu. Infrastructure CORP vs K. Veerabhadra Rao
Court's Decision & Legal Precedent
Once a registered sale deed is executed transferring absolute ownership of immovable property from the seller to the buyer, the seller cannot enforce conditions stipulated in the allotment letter or demand additional payment based on such conditions. The Transfer of Property Act, 1882, particularly Sections 5, 8, 10, 11, and 55, establishes that upon transfer of absolute interest through a registered sale deed, prior conditions cease to have effect and the buyer acquires absolute marketable title which cannot be unilaterally revoked by the seller.
On this section: Deals with rights and liabilities of buyer and seller, establishing that once the buyer discharges obligations and seller conveys ownership, the contract is concluded and the seller cannot unilaterally cancel the conveyance
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Thankamma George vs Lilly Thomas
Court's Decision & Legal Precedent
When a principal, during the subsistence of a power of attorney, independently executes a deed concerning the property that is the subject matter of the power of attorney, such independent action by the principal amounts to implied revocation of the power of attorney under Section 207 of the Indian Contract Act, 1872. The revocation becomes effective as to third parties when they have knowledge of such independent dealing by the principal, as required by Section 208. A sale deed executed by an agent after such implied revocation is void ab initio and does not bind the principal.
On this section: To constitute a sale, the conveyance must be for consideration, and the vendor must receive the sale consideration. The Court examined whether Ex. A-5 was supported by consideration.
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Good Life Estates Pvt. Ltd. v. State of Andhra Pradesh (Chekka Guru Murali Mohan batch)
Court's Decision & Legal Precedent
Final Order order-4.pdf 2021-01-19 DATE VERIFIED (Manavendranath Roy J.). Quashes 420 IPC where alleged non-disclosure of capital-city/latent advantage: TP Act s.55(5)(a) buyer duty to disclose material advantages unknown to seller — failure alone does not make out cheating without deception ingredients. Map TP 55.
On this section: s.55(5)(a) buyer duty to disclose latent material advantages unknown to seller — non-disclosure alone ≠ IPC 420.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 55
What have the courts held on Section 55 of the Transfer of Property Act?
Kaliaperumal v. Rajagopal (20 Feb 2009) is the leading judgment on this section among those set out below: s.55(4)(b) unpaid seller charge / intention that title pass only on full payment. Another 4 judgments on this section are set out below, 4 of them from the Supreme Court. They run from 2009 to 2024.
How do I find court cases under Section 55 of the Transfer of Property Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: TP Act 55, section 55 TP Act, section 55 of the Transfer of Property Act. People searching for it also type tampa 55+ communities. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 5 reported judgments on this section are set out on this page, beginning with Kaliaperumal v. Rajagopal (20 Feb 2009).
What should I read with Section 55 of the Transfer of Property Act, and has it changed?
3 other provisions in this corpus refer back to it.
When did Section 55 of the Transfer of Property Act come into force?
Section 55 of the Transfer of Property Act, cited as TP Act 55, came into force on 01 Jul 1882, having been enacted on 17 Feb 1882. It is in force as at the date shown on this page.
Other sections of this Act
- 108. Rights and liabilities of lessor and lessee1030 words
- 69A. Appointment of receiver892 words
- 3. Interpretation-clause658 words
- 35. Election when necessary614 words
- 58. Mortgage , mortgagor , mortgagee , mortgage-money and mortgage- deed defined554 words
- 76. Liabilities of mortgagee in possession533 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.