What the Seller Must Disclose About Title Under Section 55

What the section provides

Section 55 of the Transfer of Property Act, 1882 sets out the rights and liabilities of buyer and seller in the absence of a contract to the contrary. Among the seller obligations it addresses are disclosure to the buyer of any material defect in the property or in the seller title of which the seller is aware and which the buyer could not with ordinary care discover, production of documents of title for examination on request, and answering to the best of the seller information relevant questions put by the buyer in respect of the property or the title.

The phrase to notice is in the absence of a contract to the contrary. These are default obligations, and a contract can address them differently, which is exactly what a broad disclaimer clause attempts to do.

Why the disclaimer clause matters

Sale agreements frequently contain a clause stating that the buyer has inspected the property and satisfied itself as to title, and that the sale is on an as-is-where-is basis. That language is doing work: it is displacing defaults that would otherwise assist the buyer.

In a genuine as-is transaction, typically a distressed or discounted sale, that allocation may be exactly what the parties intend and the price reflects it. In an ordinary sale at market price, a buyer accepting a full disclaimer is taking on risk without a corresponding reduction, which is worth noticing before signing.

What to ask for

• An express warranty of clear and marketable title, rather than silence or a disclaimer.
• Disclosure of encumbrances, mortgages, pending litigation and unpaid dues.
• An undertaking to produce the chain of title documents for examination.
• A covenant to answer questions on title in writing, which creates a record.
• Indemnity for defects in title arising from matters within the seller knowledge, surviving completion.

Diligence is still yours to do

None of this replaces independent verification. The section addresses defects of which the seller is aware and which the buyer could not with ordinary care discover, which leaves a great deal that ordinary care is expected to find.

Title search, encumbrance certificate, property tax and utility dues, approvals and, where applicable, the RERA record for a project sale are the ordinary steps. A seller obligation to disclose is a complement to that work, not a substitute for it.

Where advice is worth taking

Title work in India is fact-heavy and state-specific, and a general article can only tell you what to ask about. Whether a particular chain of title is clean, whether an encumbrance matters, and what a specific disclaimer clause achieves are all questions for an advocate who does property work in that state.

For a purchase representing a large proportion of your savings, that fee is small against the exposure, and it is the clearest case in this entire content set for not relying on general information.