• Claw in sales deed about loss

I wan clarity on following , i am vendor

the vendor hereby assures and indemnifies the vendee from any loss,claim,dispute arising over the scheduled property or any defect in respect of title arising in future , the vendee shall have right to get losses, if any, recovered from the person and property of vendor

question , is it ok to have this , what does loss meant
Asked 4 years ago in Property Law
Religion: Other

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22 Answers

This is general clause in sale deed. NO harm.

Any loss incurred by vendee by defective title

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

Dear sir,

This means that in case it is found out later that you were not having a clear title over the property (for eg. it is already sold or mortgaged or charged to someone else), then in such case any loss caused due to this fault of yours to the buyer (vendee) would be made good by you. 

It is a standard clause in a sale deed. It is okay to have this clause if you have a clear title and you are not committing any fraud of the buyer. 

Best wishes. 

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

5.0 on 5.0

It's a general clause being included in the sale deeds.  This clause is already there from whom you purchased.  This class is included in the sale deed to assure that property is free from any defect and in case there is any defect, you are liable to keep the buyer indemnified. Need not to worry if there is no encubrance, change, lien on the property.  Relax.  

Dalip Singh
Advocate, New Delhi
1083 Answers
36 Consultations

5.0 on 5.0

This clause is absolutely legal and standard to be put into a sale deed.

If the seller sells a defective title then he is bound to compensate the buyer for the loss he may incur to defend title or to clear it.

Devajyoti Barman
Advocate, Kolkata
22815 Answers
488 Consultations

5.0 on 5.0

Loss cover only defect with title or bills or something due to paid to govt. office.

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

Damage to flat/construction shall not include.

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

Dear sir,

The term "ANY LOSS" cannot be read in isolation. It has to be read in the context of the entire clause. Here, "ANY LOSS is IN RESPECT OF TITLE" and NOT any other loss for eg loss due to natural disaster, ordinary wear and tear, diminishing of the market value of property etc.

You can count on us for this. There is absolutely nothing wrong in this clause. It will not harm you in the manner you are thinking right now.  

Best wishes. 

 

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

5.0 on 5.0

1. Yes this is formal paragraph and it has to be mentioned in sale deed as in case if the title of property is not clear or their is dispute in future regarding same from vendor side the purchaser can claim amount from seller .

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Sir the clause makes it clear that it's regarding the title of the property and any loss here included the legal expenses or any other expenses which the buyer incur due to defective title.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. Legally speaking, when you indemnify anybody relating to a immovable property, it is means losses arising from legal litigation /claims etc.... from any other legal heirs /third parties /statutory authorities ....

2. Personal losses or losses to property (say via earthquake, fire, demolition, default breaking down etc.... ) are not covered, unless specifically specified in the indemnity clause by value thereof.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

It means you have to indemnify buyer in case of defect in title and in case any claims are received from third parties 

 

it is standard clause in sale deed 

Ajay Sethi
Advocate, Mumbai
94691 Answers
7527 Consultations

5.0 on 5.0

Suppose there is demand from authorities regarding non payment of stamp duty or property taxes 

 

you will have to pay 

Ajay Sethi
Advocate, Mumbai
94691 Answers
7527 Consultations

5.0 on 5.0

Loss means any dues against the property prior to purchase of the flat if borneby the buyer would be recovered from vendor.

Dalip Singh
Advocate, New Delhi
1083 Answers
36 Consultations

5.0 on 5.0

An indemnity bond protects the person holding the bond from financial loss. In other words, the holder of the bond has the right to receive money from a party that agrees to protect the holder from losing money.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

- As you have declare in the said deed, that being the owner of the said property , you have right to sell and transfer the same to the buyer i.e. vendee , hence by these sentence of the clause , the vendee wants to be sure that , if case your ownership having any fault or you have sell the same to any other person/s , then you being the seller i.e. vendor will be responsible for the said loss , and you will indemnity / refund the amount to the buyer . 

- Yes, it is purely title related . 

- If you are not owner of the said property and received the amount from the vendee i.e. purchaser , then it will be a loss to the purchaser , and that case , the vendor being the seller of the property will refund the loss and damage i.e. full amount plus expenditures etc . 

Mohammed Shahzad
Advocate, Delhi
13211 Answers
198 Consultations

5.0 on 5.0

It's that the person signing it indemnifies the other person for losses in future on the said property

Prashant Nayak
Advocate, Mumbai
31930 Answers
179 Consultations

4.1 on 5.0

This is an essential clause that has to be incorporated in the registered sale deed.

By this the vendor agrees to indemnify the vendee the losses that may occur due to false title or any other litigation which was not disclosed by the vendor now or which was not in the knowledge  but has an impact on the vendor even before selling this property.

There is nothing wrong in this clause, it is a routine and common clause that will appear in all the sale deeds.

 

T Kalaiselvan
Advocate, Vellore
84892 Answers
2190 Consultations

5.0 on 5.0

If there is a defect in title and due to tht if there is any litigation filed by any third person, then it becomes the duty of the vendor to compensate the losses the vendee may suffer due to the litigation  or due to an adverse judgment affecting the purchase of property  and creating great loss to the vendee.

 

T Kalaiselvan
Advocate, Vellore
84892 Answers
2190 Consultations

5.0 on 5.0

Yes it is okay to have this clause it is a general clause of indemnity to indemnify any loss arise in future due to legal dispute between Previous owners or their legal heirs.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Yes it is okay to have this clause it is a general clause of indemnity to indemnify any loss arise in future due to legal dispute between Previous owners or their legal heirs.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Losses here mean tgat in case there is any dispute as to the title or ownership of the property and he is dragged into litigation then you would indemnify him.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

No no. Any loss means if he suffers a loss ie monetary in litigation or suppose the value of the property appreciates but he is deprived of the property or he is threatened if the property is disputed then you would indemnify him.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

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