Sales Of Immovable Property MCQ Quiz - Objective Question with Answer for Sales Of Immovable Property - Download Free PDF

The correct answer is Sec. 54

Key PointsSection 54, Transfer of Property Act, 1882
Definition of Sale:
Section 54 defines "sale" as the transfer of ownership of property in exchange for a price that is either paid, promised, or partly paid and partly promised.

Mode of Transfer:

• For Tangible Immovable Property Worth ₹100 or More:

The sale must be made through a registered instrument.

• For Tangible Immovable Property Worth Less than ₹100:

The transfer can be made either by a registered instrument or by delivery of possession.

• For Intangible Property (e.g., reversionary rights):

Transfer must be made through a registered instrument.

• Delivery of Property:

Delivery occurs when the seller places the buyer or their authorized person in possession of the property.

• Contract for Sale:

A contract for sale is an agreement that a sale will take place in the future based on mutually agreed terms.

• However, such a contract does not itself create any ownership rights or charge over the property until the sale is executed.
• Thus, Section 54 establishes how ownership in immovable property is transferred and the legal requirements for a valid sale.

The correct answer is 'tenant by holding over.'

Key Points

• Tenant by holding over:
  • Under the Transfer of Property Act, 1882, a lessee of an immovable property who continues to remain in possession of the leased property after the determination of the lease period, with the consent of the lessor, is referred to as a 'tenant by holding over.'
  • This situation arises when the lessor accepts rent or otherwise acknowledges the lessee's continued possession.
  • A new lease is implied in this scenario, and the terms of the original lease, as far as they are applicable, continue to govern the relationship between the lessor and the lessee.
  • The consent of the lessor is crucial in converting a tenant at sufferance to a tenant by holding over.

Additional Information

• Tenant at sufferance:
  • A tenant at sufferance is someone who continues to occupy the property without the landlord's consent after the lease has expired.
  • This situation is generally considered a form of trespass, and the tenant is not entitled to any rights under the original lease.
• Protected tenant:
  • A protected tenant is a tenant who enjoys special protection under certain rent control laws, which prevent eviction except on specific grounds.
  • These laws aim to safeguard tenants from arbitrary eviction and ensure fair rental practices.
• None of the above:
  • This option is incorrect as the specific term for a lessee continuing in possession with the lessor's consent is 'tenant by holding over.'

The correct answer is Lease.

Key Points

• In a lease, as per Section 105 of the Transfer of Property Act, 1882, the right to enjoy the property is transferred from the lessor to the lessee for a specific time, in return for consideration (rent, premium, or both).
• In a sale, ownership is transferred, not just the right to enjoy.
• In a mortgage, the property is used as security for a loan, and the right to enjoy the property does not transfer to the mortgagee.
• Therefore, the correct answer is lease. 

The correct answer is option 1

Key Points Section 55 of TPA provides 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 buyer any material defect in the property 1[or in the seller’s 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 encumbrances on such property due on such date, and, except where the property is sold subject to encumbrances, to discharge all encumbrances 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 encumbered 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 buye 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, 1[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 1[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 encumbrances, the buyer may retain out of the purchase-money the amount of any encumbrances 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 encumbrances 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, 2[* * *] 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.

The correct answer is option 1.Key Points

•  In the given scenario, Ashok lets a house to Bharat for five years, and Bharat underlets the house to Kishore at a monthly rent of Rs. 2,000/-. After the expiration of the five years, Kishore continues in possession of the house and pays the rent to Ashok.
• According to Section 116 of the Transfer of Property Act, 1882, if a lessee or under-lessee remains in possession of the property after the lease term has ended and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise agrees to their continued possession, the lease is considered renewed. This renewal is either from year to year or from month to month, depending on the original lease purpose, as specified in Section 106.
• In this case, since Ashok has accepted rent from Kishore after the expiration of the original lease, Kishore's status is that of a tenant holding over. The lease is thereby renewed according to the original terms, either on a yearly or monthly basis as per the original lease agreement.

The correct answer is option 1.Key Points

•  In the given scenario, Ashok lets a house to Bharat for five years, and Bharat underlets the house to Kishore at a monthly rent of Rs. 2,000/-. After the expiration of the five years, Kishore continues in possession of the house and pays the rent to Ashok.
• According to Section 116 of the Transfer of Property Act, 1882, if a lessee or under-lessee remains in possession of the property after the lease term has ended and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise agrees to their continued possession, the lease is considered renewed. This renewal is either from year to year or from month to month, depending on the original lease purpose, as specified in Section 106.
• In this case, since Ashok has accepted rent from Kishore after the expiration of the original lease, Kishore's status is that of a tenant holding over. The lease is thereby renewed according to the original terms, either on a yearly or monthly basis as per the original lease agreement.

The correct option is Lease.

Key Points

• Lease basically means when one person through the means of a contract conveys or rents his property to another person for a specified amount of time in return for a periodic or a lump-sum payment.
• Example:
  • A leases his house to B for 8 months for periodic payment of Rs. 10000 per month. 
• Definition-
  • The term “lease” is defined under Section 105 of The Transfer of Property Act of 1882.
  • It states that “A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specific occasions to the transferor by the transferee, who accepts the transfer on such terms”.
  • There are four terms which are related to lease of immovable property:
    • Lessor- The transferor of the immovable property is called lessor.
    • Lessee- The transferee of the immovable property is called lessee. 
    • Premium- The premium is the price paid for obtaining a lease of immovable property.
    • Rent- The money or service that is rendered is known as rent.

The correct answer is Transfer by ostensible owner.

Key Points

• Section 41 of the Transfer of Property Act, 1882, provides for Transfer by ostensible owner.
• It states that —Where, with the consent, express or implied, of the persons interested in immoveable property, a person is the ostensible owner of such property and transfers the same for consideration, the transfer shall not be violable on the ground that the transferor was not authorised to make it:
  Provided that the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith.

The correct answer is Option 3.

Key Points

• When a lessee accepts a new lease of the property leased from the lessor to take effect during the continuance of the existing lease, it is considered an implied surrender of the former lease, and such lease determines thereupon.
• This situation signifies the relinquishment of the previous lease by the creation of a new relationship between the lessor and lessee. 
• It is governed by Section 111 of the Transfer of Property Act, 1882, which outlines the determination of lease under various circumstances such as the acceptance of a new lease, forfeiture, or by express or implied surrender. 

Additional InformationSection 111 of the Transfer of Property Act, 1882, which outlines the various circumstances under which a lease of immovable property can be determined.

1. By Efflux of Time: A lease is terminated upon the expiry of the specified time period.
2. By Happening of Specified Event: If the lease is conditional on the occurrence of a specific event, it is determined by the happening of that event.
3. Termination of Lessor’s Interest: When the lessor’s interest in the property ceases, the lease also ends.
4. By Merger: If the interests of the lessee and the lessor become vested at the same time in one person and in the same right, the lease is determined.
5. By Express or Implied Surrender: Express surrender can occur if the lessee yields up their interest under the lease to the lessor by mutual agreement, while implied surrender occurs when the lessee accepts a new lease of the property leased during the continuance of the existing lease.
6. By Forfeiture: Forfeiture occurs under various circumstances, such as breach of conditions by the lessee, denial of the landlord’s title, or the insolvency of the lessee.
7. On the Expiration of a Notice: The lease is determined upon the expiration of a notice to determine the lease or to quit

The correct answer is option 1

Key Points Section 55 of TPA provides 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 buyer any material defect in the property 1[or in the seller’s 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 encumbrances on such property due on such date, and, except where the property is sold subject to encumbrances, to discharge all encumbrances 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 encumbered 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 buye 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, 1[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 1[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 encumbrances, the buyer may retain out of the purchase-money the amount of any encumbrances 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 encumbrances 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, 2[* * *] 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.

The correct answer is option 1.Key Points

•  In the given scenario, Ashok lets a house to Bharat for five years, and Bharat underlets the house to Kishore at a monthly rent of Rs. 2,000/-. After the expiration of the five years, Kishore continues in possession of the house and pays the rent to Ashok.
• According to Section 116 of the Transfer of Property Act, 1882, if a lessee or under-lessee remains in possession of the property after the lease term has ended and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise agrees to their continued possession, the lease is considered renewed. This renewal is either from year to year or from month to month, depending on the original lease purpose, as specified in Section 106.
• In this case, since Ashok has accepted rent from Kishore after the expiration of the original lease, Kishore's status is that of a tenant holding over. The lease is thereby renewed according to the original terms, either on a yearly or monthly basis as per the original lease agreement.

The correct answer is : Option 1 : A-1,B-3,C-4,D-2

Key PointsSection 54 of the Transfer of Property Act, 1882 :  “Sale” defined, Sale how made, Contract for sale.
Section 55 of the Transfer of Property Act, 1882 : Rights and liabilities of buyer and seller.
Section 56 of the Transfer of Property Act, 1882 : Marshalling by subsequent purchaser.
Section 57 of the Transfer of Property Act, 1882 : Provision by Court for encumbrances and sale freed therefrom.

The correct option is Lease.

Key Points

• Lease basically means when one person through the means of a contract conveys or rents his property to another person for a specified amount of time in return for a periodic or a lump-sum payment.
• Example:
  • A leases his house to B for 8 months for periodic payment of Rs. 10000 per month. 
• Definition-
  • The term “lease” is defined under Section 105 of The Transfer of Property Act of 1882.
  • It states that “A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specific occasions to the transferor by the transferee, who accepts the transfer on such terms”.
  • There are four terms which are related to lease of immovable property:
    • Lessor- The transferor of the immovable property is called lessor.
    • Lessee- The transferee of the immovable property is called lessee. 
    • Premium- The premium is the price paid for obtaining a lease of immovable property.
    • Rent- The money or service that is rendered is known as rent.

The correct All of the above 

Key Points Section 55.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 buyer any material defect in the property  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.

The correct answer is option 3.

Key Points Section 55 of TPA provides 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 buyer any material defect in the property 1[or in the seller’s 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 encumbrances on such property due on such date, and, except where the property is sold subject to encumbrances, to discharge all encumbrances 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 encumbered 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 buye 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, 1[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 1[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 encumbrances, the buyer may retain out of the purchase-money the amount of any encumbrances 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 encumbrances 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, 2[* * *] 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.