Specific Relief Act Section 13 — Rights of purchaser or lessee against person with no title or imperfect title
CHAPTER II SPECIFIC PERFORMANCE OF CONTRACTS
General
Summary
If someone agrees to sell or lease property they do not actually own, or only own partially, the buyer or renter has certain options. They can force the seller or landlord to complete the deal using any ownership interest they later acquire in the property. If other people need to approve or sign documents to make the title valid, the buyer or renter can force the seller or landlord to get those approvals or documents. If the seller claims the property is free of debts but it is actually mortgaged for an amount no more than the purchase price, the buyer can force the seller to pay off the mortgage and get a proper release. If the seller or landlord sues to enforce the contract but loses because they lack proper title, the other side can get back their deposit with interest, their legal costs, and a claim on any interest the seller or landlord has in the property. These same rules also apply to contracts for selling or renting movable goods.
Official Text
(1) Where a person contracts to sell or let certain immovable property having no title or only an imperfect title, the purchaser or lessee (subject to the other provisions of this Chapter), has the following rights, namely:—
(a) if the vendor or lessor has subsequently to the contract acquired any interest in the property, the purchaser or lessee may compel him to make good the contract out of such interest;
(b) where the concurrence of other person is necessary for validating the title, and they are bound to concur at the request of the vendor or lessor, the purchaser or lessee may compel him to procure such concurrence, and when a conveyance by other persons is necessary to validate the title and they are bound to convey at the request of the vendor or lessor, the purchaser or lessee may compel him to procure such conveyance;
(c) where the vendor professes to sell unencumbered property, but the property is mortgaged for an amount not exceeding the purchase money and the vendor has in fact only a right to redeem it, the purchaser may compel him to redeem the mortgage and to obtain a valid discharge, and, where necessary, also a conveyance from the mortgagee;
(d) where the vendor or lessor sues for specific performance of the contract and the suit is dismissed on the ground of his want of title or imperfect title, the defendant has a right to a return of his deposit, if any, with interest thereon, to his costs of the suit, and to a lien for such deposit, interest and costs on the interest, if any, of the vendor or lesser in the property which is the subject-matter of the contract.
(2) The provisions of sub-section (1) shall also apply, as far as may be, to contracts for the sale or hire of movable property. CONTRACTS WHICH CANNOT BE SPECIFICALLY ENFORCED