Site navigation

The parties sign a contract to sell a tenanted property, but ownership has not yet passed. The contract…

Under section 55(4)(a), the seller is entitled to rents and profits until ownership passes in the absence of a contract to the contrary. Section 55(6)(a) gives the buyer the…

Choose your answer

The parties sign a contract to sell a tenanted property, but ownership has not yet passed. The contract makes no special provision for rents and profits. Who is entitled to the rents and profits under section 55 of the Transfer of Property Act, 1882?

Select one answer
Answer and explanation

Correct answer D

Under section 55(4)(a), the seller is entitled to rents and profits until ownership passes in the absence of a contract to the contrary.

Section 55(6)(a) gives the buyer the benefit of rents and profits once ownership has passed.

Option feedback

Option A

The amount paid does not determine the statutory allocation.

Option B

The Act does not share these rents equally by default.

Option C

The buyer’s corresponding right arises when ownership passes.

Option D

Until ownership passes, the seller has the statutory entitlement in the absence of an agreement to the contrary.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic