Land records in India are full of Mughal-era terminologies, which make it difficult for a rookie buyer and investor to understand, especially when they consider investing in rural areas. With an intent to de-jargon these commonly used land revenue terms, Housing.com explains the meaning of ‘Baya’ here.
See also: Commonly used land and revenue record terms in India
Who is Baya?
Baya (बाया) is a commonly used term to describe the seller of lands in northern India. A seller or baya is a person who gives away his rights on a land or any other property in exchange for a consideration.
Rights and liabilities of Baya (seller)
The seller of an immoveable property has liabilities, as well as rights under the provision of the Transfer of Property Act.
Prove his ownership over property
The seller should prove that he has the power to transfer his rights on the property. In case, the sale is made by a person in a fiduciary character, the seller should prove that no act has taken place whereby the property is encumbered or whereby the seller is hindered from transferring it.
Inform buyer about property-related defects
A seller is bound to disclose, to the buyer, any material defect in the property. An omission to make such disclosures is fraudulent.
Produce property documents
A seller should produce, on buyer’s request, all documents of title related to the property for examination, which are in the seller’s possession or power.
Answer all questions pertaining to property
A seller should answer, to the best of his knowledge, all relevant questions put to him by the buyer with respect to the property or title.
Execute a proper conveyance
A seller should, on payment or tender of the amount due with respect to price, execute a proper conveyance of the property when the buyer tenders it to him for execution at a proper time and place.
Take care of the property till its transfer
A seller should take care of the property and all documents of title, which are in his possession as an owner of ordinary prudence would take of such property and documents between the date of the contract of sale and the registration.
Provide property documents
When the entire amount has been paid to the seller, he is bound to deliver all documents of title related to the property, which are in his possession or power, to the buyer.
Provide possession
A seller should give on being required, the buyer, or such person as he directs, such possession of the property as its nature admits.
Pay dues
A seller should pay all public charges and rent accrued with respect to the property till 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 encumbrances on the property then existing.
Rights of the seller
The act also defines the rights of Baya as follows:
To get paid for the sale
The buyer is also bound to pay or tender, at the time and place of completing the sale, the purchase-money to the seller, 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 on the date of the sale, and shall pay the amount so retained to the persons entitled.
Right to receive rent
The seller can continue to receive rents and profits of the property till the ownership thereof passes to the buyer. The seller is also entitled to a charge upon the property in the hands of the buyer where the ownership of the property has passed to the buyer before payment of the entire money.
To know facts that can increase property value
The buyer is also bound 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.
To not pay for damage caused to property by the buyer
The buyer must bear any loss arising from the destruction, injury or decrease in value of the property not caused by the seller where the ownership of the property has passed to the buyer.
To not pay dues after transfer
The buyer should pay all public charges and rent which may become payable with respect to the property, the principal amount due on any encumbrances subject to which the property is sold, and the interest thereon afterwards accruing due where the ownership of the property has passed to the buyer.
FAQs
What is transfer of property?
Transfer of property means an act by which a person conveys a property, in present or future, to one or more persons, or to himself and one or more other persons. To transfer a property is to perform such act.
What is land sale?
A sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
Can an oral transfer of property possible?
Yes, a transfer of property can be done without writing, in case where writing is not expressly required by law.
What is a contract for sale of an immovable property?
A contract for sale of an immoveable property is an agreement that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.
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