Section 85 of The Punjab Land-Revenue Act, 1887 — Payment of deposit by highest bidder
Bare section text
Official Legislative Text
When the highest bid at the auction has been ascertained the person who made that bid shall, on the requisition of the officer conducting the sale, pay to that officer a deposit of twenty-five per centum on the amount of his bid, and shall, on payment thereof, be declared to be the purchaser subject to the provisions of this Chapter with respect to the exercise of any right of pre-emption.
Educational Study Layer
Summary
- This section outlines the immediate financial obligation of the winning bidder at a property auction.
- Once the highest bid is determined, the winning bidder must pay a deposit.
- The deposit amount is required to be twenty-five percent of the total bid.
- This payment must be made upon the requisition, or request, of the officer running the sale.
- After paying the deposit, the person is declared the purchaser, though this is subject to any rights of pre-emption, which is a legal right to buy before others.
Practical examples
FAQ
1. How much is the deposit under Section 85 of The Punjab Land-Revenue Act, 1887?
Section 85 of the land law dictates that the deposit must be twenty-five percent of the amount of the highest bid.
2. To whom is the deposit paid under Section 85 of the Act?
According to Section 85 of the Punjab property law, the deposit is paid directly to the officer conducting the sale.
3. Does paying the deposit under Section 85 of the land revenue law guarantee final ownership?
Under Section 85 of the Act, the person is declared the purchaser, but this status is still subject to the exercise of any right of pre-emption.
Practice Quiz
Q1.What percentage of the bid must be paid as a deposit?
Q2.What happens immediately after the deposit is paid?
Q3.The declaration of the purchaser is subject to what specific legal provision?
Q4.Who requests the payment of the deposit from the bidder?