Mufti Online — Madrasah Ta'leemuddeen

Previous lease agreement automatically terminating when purchasing a property

· 20 Jumada I 1447 AH1 min readEnglish

Question

We acquired a property upon which the tenant has a six year lease on terms that fall far short of market related rentals. Are we obliged to renew the lease for the renewal period.

It should also be remembered that the lease was irregularly concluded to start with and as already existing shareholders our rights were infringed upon by the person concluding the lease.

Answer

According to Shariah when a property is purchased, then the lease agreement between the previous owner and his tenants automatically terminate.

Hence, you have the right to increase the rentals or ask the tenants to leave.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/36352
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-36352

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