Code: Section 13 – The Specific Relief Act
Section 13.
(1) If a person contracts to sell or lease immovable property but has no title or only an imperfect title, the purchaser or lessee has the following rights:
- (a) If the vendor or lessor later acquires any interest in the property, the purchaser or lessee may demand the contract be honored using that interest;
- (b) If another person’s approval is needed to validate the title, and they must approve at the request of the vendor or lessor, the purchaser or lessee can force the vendor to obtain this approval;
- (c) If the vendor claims to sell unencumbered property but the property is mortgaged for an amount not exceeding the purchase price, the purchaser can compel the vendor to redeem the mortgage and clear the property’s title;
- (d) If the vendor or lessor seeks specific performance but fails due to lack of title or imperfect title, the defendant can claim a return of the deposit, any costs of the suit, and a lien for those on the vendor’s interest in the property.
(2) These provisions also apply to contracts for the sale or hire of movable property.
Explanation of Section 13 – The Specific Relief Act
Section 13 of The Specific Relief Act outlines the rights of a purchaser or lessee when the seller or lessor does not have a full or valid title to a property. The law protects the purchaser or lessee with several remedies to ensure fairness.
Key Points:
- Vendor or Lessor Gains Title: If the vendor or lessor later gains valid ownership or rights to the property, the purchaser or lessee can demand the contract be fulfilled using the new interest.
- Obtaining Approvals: If validating the title requires the approval of another person, the purchaser or lessee can demand that the vendor obtain it. If the vendor needs other parties to sign a conveyance, the purchaser can compel them to secure those signatures.
- Mortgage Redemption: If the property is mortgaged, and the seller only has the right to redeem it, the purchaser can force the vendor to clear the mortgage and transfer the property with a clean title.
- Failure of Specific Performance: If a court dismisses a suit for specific performance due to the vendor’s lack of title, the purchaser or lessee can recover their deposit and related costs.
Illustration
Example 1: Vendor Acquires Title After Agreement
A vendor agrees to sell a property but later realizes their title is imperfect. After some time, they acquire full ownership. The purchaser can compel the vendor to proceed with the sale using this new ownership.
Example 2: Property Subject to Mortgage
A vendor claims to sell a property free of encumbrances, but it is actually mortgaged. The purchaser can require the vendor to redeem the mortgage and transfer clear title to the property.
Example 3: Title Defects in Specific Performance
A lessee signs a lease, but the lessor does not legally own the property. When the lessee requests specific performance, the court dismisses the suit because of the lessor’s defective title. The lessee can recover the deposit, costs, and interest.
Common Questions and Answers on Section 13 – The Specific Relief Act
1. What rights does a purchaser have if the vendor has no title?
- Answer: The purchaser can compel the vendor to redeem mortgages, obtain necessary approvals from third parties, or fulfill the contract if the vendor later acquires valid title.
2. Does Section 13 apply to movable property?
- Answer: Yes, Section 13 also applies to contracts for the sale or hire of movable property, as specified in sub-section (2).
3. What if the vendor has an imperfect title?
- Answer: The purchaser can compel the vendor to take actions such as redeeming a mortgage or obtaining the necessary approvals from third parties to complete the sale.
4. Can the purchaser recover their deposit if the title is defective?
- Answer: Yes, if a suit for specific performance fails due to the vendor’s defective title, the purchaser can recover their deposit, any interest, and legal costs.
Conclusion
Section 13 of The Specific Relief Act ensures that a purchaser or lessee is protected if they enter into a contract with a seller or lessor who does not hold valid title or has an imperfect title. The section offers several remedies, such as compelling the vendor to redeem a mortgage, obtain necessary approvals, or honor the contract once they acquire valid title. It also ensures that purchasers and lessees can recover their deposit and costs if the vendor’s title is defective.
