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Transfer of Property Act., section 55

(Querist) 24 June 2008 This query is : Resolved 
if an encumbrance is discovered subsequent to the execution of a sale deed, can the purchaser of the property retain the unpaid balance purchase money towards the costs of the encumbrances.

I also request for case laws in this aspect
amit gupta_lawyer (Expert) 24 June 2008
if any encumbrances is discoverd subsequent to the execution of sale deed then the puschaser generally retain the unpaid balance money out of the money generaly given in cash this i am talking abt the general practice. now if u ask me abt the legal prospect then at the time of signing the sale deed its clearly mention that all the encrumbrances has been paid by the seller till date and if any encrumbrances remain unpaid till date then seller would be liable to pay and if purchser has to bear the liability of the seller than purchaser is entitle to recover the same from the seller. how ever by mentioning it in the sale deed that the amount has been held by the purchaser for the clearing the encrumbance which is to be paid by the seller would be sufficent and certainly seller would sign before the rgistrar and accept the same.
Srinivas.B.S.S.T (Expert) 24 June 2008
right said by my learned friend. The recitals of the sale deed itself makes it clear that the seeler will clear all the disputes over the schedule property at his own costs and expenses.
arunprakaash.m. (Expert) 25 June 2008
Yes the recital of the deed should contain the clause for encuberence matter. If the vendor has knowledge about the same you can procecute him for cheating.
KamalNayanSaxena (Expert) 26 June 2008
After issuing legal notice to seller you may hold the unpaid amount.

If unpaid amount is not sufficient to meet the encumbrances, suit may be filed to recover balance amount.


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