As agent of the owner, I sold a plot of land and noted the transaction on an official piece of paper. I received the sale price in part, on the understanding that I change the title deed of the land to the name of the buyer after he had settled the outstanding amount. Although the transaction has not been officially registered, the buyer took the initiative and constructed a number of shops on the land. Having enjoyed the returns from the rent of these shops, he did not bother to settle the taxes and rates due to the authorities. When I sold the land some twelve years ago, it used to be a derelict land. In the unofficial sale agreement, there was a provision that when the land would officially be transferred to the name of the buyer, all the expenses would be borne by him. Who should pay the outstanding taxes and rates, i.e. the vendor or the buyer?

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The taxes and expenses relating to the land as such or those expenses resulting from selling it are the responsibility of the vendor. Any taxes and expenses arising from the construction on the land, or from its use for commercial purposes, should be borne by the buyer who had built it. Furthermore, if the two parties reached an agreement as a term in the sale contract that one of them is responsible for the expenses, they should act accordingly.



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