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Formalities in Land Sale Contracts

  • 05 Pages
  • Published On: 22-11-2023


The formalities regarding the sale of land are stated by the Law of Property, 1925, under Section 40 lay down rules for contract of sale but any contract that do not follow the requirements as laid down in these sections will not stand void but remain unenforceable. The section also covers any kind of oral contracts that is made between the parties but it may pose a bar on the methods and procedural remedies are applied. The oral contracts are more protected if they are in written form like a memorandum to help provide for easy evidence in case of any dispute. The law of Property 1925 states sets of proprietary rights including the freehold title and possession known as the legal estates and the ones that are governed by “years absolute”. The requirements therefore, laid down are important and must be followed but it has been argued over and over again that if the formal requirements are not followed it would result in showing the conflicted and ignorant interest of the parties. Having the formal requirements and following them provides a lot of benefits having a clearer evidence in times of dispute, the question of security is better dealt with and others.


To transfer a freehold land certain steps and procedures are to be followed like firstly, it is important to put in the notice in the freehold title registry if a sale needs to be done towards a third party and then the notice must include all the details and finally be prepared on the freeholder in order to purchase the freehold. The prepared notice then shall be served on the freeholder. After this process any party interested may respond to the request made by the freeholder in order to substantiate the claims made and with just a counter notice the service can be responded with. This process makes way for absolute transfer of the freehold title and from then on the represented person handles the procedure with their respective solicitor.

As soon as the abovementioned process is followed through then the contract for sale shall be prepared. If the need arises, the other party may enquire about the property and raise such enquiries and if no objections or questions arise, the deed shall be proceeded with. After checking in with the Land Registry, the transaction between the party shall be complete.

A freehold title can be registered under joint names raising up to four persons and claiming a portion of the freehold doesn't qualify the rent forbid changes without property manager's assent, penetrating the details of the rent may have exorbitant results. It must be remembered a rent is a squandering resource that will turn out to be less significant the more limited it becomes. A vital bit of leeway of possessing a portion of the freehold is that the co-freeholders can consent to concede themselves long term leases consequently ensuring the estimation of their venture. It also ensures and additionally imply that the tenants can have more prominent control of the everyday administration of the structure. There could be a few disadvantages as well in cases if an organization associated with the administration of a structure can be tedious. Helpless administration can prompt a scope of issues.

The advantages of legal rules to cover a contract is indeed beneficial but it also causes a certain amount of detriment for the same as well. In seeing through the contract, the possibility of a supervised and well-defined channel helps in the completion of the transaction however, there are many de merits that may be faced due to the well-formed rules. The first detriment could be the cost of compliance which could be over bearing for some but the bigger impediment could be failure of informal transactions.

At the point when an exchange doesn't agree to a convention it can come up short and the gatherings' goals won't be maintained. This in itself could be viewed as adequate disservice to exceed the advantages of custom; particularly on the off chance that we are managing preventative conventions, where the main advantage would be that the gatherings are cautioned they are going into lawfully restricting exchanges; despite the fact that they may effectively mindful of this

The foul play of this is that rebelliousness of customs as a rule happens because of obliviousness concerning prerequisites of structure, and numerous pundits see punishing resistance because of obliviousness as age-old and unreasonable , just as in opposition to goals of the gatherings at the hour of the exchange.

B. (a) In the event that the house is sold, advise C as to how the proceeds of sale would be divided.

In a freehold property, there can be up to four owners and in this case A,B,C and D are four owners of the freehold property. All four parties contributed to the purchase price of the property equally and the deed transferred the property to the joint names.

In the initial stage, all four were equal owners of the property and shared joint tenancy properties where in there isn’t one owner, and without any declaration of the same everyone shared same ownership in the property. Only on the death of one of the four parties could forward their share of property to their assigned successor or chosen representatives to carry forward their share like original survivors and would have their place as the same. Given A’s stance in 2015, his willingness to sell his share of property and claim his proceeds of the sale. He is entitled to his share of property and after selling such, he has the right over the claims. However, at this stage the joint tenancy is converted to tenancy in common and A can claim the proceeds of sale.

A and B in unfortunate turn of events have been killed and therefore transferred their respective property by will to their assigned people. However, in turn of events, D and C are the two living holders of property and D wishes to sell the property and C does not but if the remaining party wishes to sell the property then C has to give in and cooperate. Since A and B’s property rests with E and G and therefore before proceeding to sell the property, the consent of all the parties are important. If all the living owners of the property give proper consent, then such shall be proceeded with and C in this case has to abide by the sale.

At this point once the house is sold, as all the four parties had given equal input in the purchasing price therefore, all the four parties, including the parties who have been given in transfer through will now hold the same position as original parties in tenancy in common.

(b) Would the outcome be different if the house had been purchased as a business asset?

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In case the Co-possession, or joint proprietorship, is when at least two people hold title to a similar property. In the event of co-responsibility for, at least two people mutually own a property with a privilege to normal belonging and use. In such a case, every one of the people is known as a co-proprietor. The portion of a co-proprietor is determined. In any case, it will be held in a unified state as it were. In the event of co-responsibility for property by four people, every individual possesses one-fourth unified offer and interest in the whole property. A co-proprietor's offer is adaptable. Additionally, a co-proprietor's offer is inheritable freely and is equipped for being sold, burdened or offered as a security. Without explicit reference to the degree of co-proprietorship in any record, the degree of unified offer, interest, right and title will be in relation to the portion of the co-proprietor's commitment to the complete thought paid for the obtaining of the entire property.

In the event that there is simply sharing of receipts by co-proprietors from the co-possession properties, it won't make it an organization. Essentially, a connection between a bank of assets and credit sum paid towards revenue to him doesn't make an organization.

At the point when at least two individuals purchase a property however don't explicitly specify the offer that each has in the property, therefore the tenancy in common exists. All the co-proprietors can utilize the whole property and each co-proprietor is esteemed to have an equivalent offer in it. Upon the demise of one of the co-proprietors, the interest in the property doesn't pass to the next co-proprietors yet to the individual named in the Will of the expired, who will at that point become an inhabitant in a similar manner as the enduring co-proprietors.

Joint tenure is a type of co-possession where property is claimed by at least two people simultaneously in equivalent offers. This kind of occupancy gives rights to responsibility for property for the co-proprietors who outlast other co-proprietors. At the point when one joint.

However, in case it would be purchased for a business purpose the system would definitely be different and the interest would be shared amongst the surviving partners in the business and would be liquidated as per the requirement of the business and partners. The individual interest in this case cannot be catered to much and the entire scenario would have one pre decided resolution.


Shelter Legal England, “ What is joint ownership” <> accessed on 26th November, 2020

Vineeta Menon, Real Estate basics, “ What Is a freehold property” <,registration%20of%20a%20sale%20deed. > accessed on 27th November, 2020

Michelle Milley, Home Guides, “ What if a tenant in common wants to sell?”

The Economic Times, “ Partners and Co-owners in Property” <> accessed on 26th November, 2020

Essay Sauce , Legal formalities in property transactions. accessed on 26th November, 2020

The Law Commission, Transfer of and, “ FORMALITIES FOR CONTRACTS FOR SALE ETC. OF LAND “ < > accessed on 26th November, 2020

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