Can a Transferee Landlord Recover Rent Arrears Accrued Before Transfer?

Imagine purchasing a rental property only to find the tenant owes months of back rent to the previous owner. Can you, as the new landlord, step in and demand those arrears as part of your rights? This common scenario raises a critical question in landlord-tenant law: Whether the Transferee Landlord is Entitled to Get Rent in Arrears which Accrued Prior to the Transfer of the Tenanted Premises.

In this post, we explore the legal nuances under Indian law, primarily Section 109 of the Transfer of Property Act, 1882 (TPA), supported by key judicial precedents. While this provides general insights, consult a legal professional for advice tailored to your situation.

The Core Legal Principle: Section 109 of the Transfer of Property Act

Section 109 TPA governs the rights of a transferee upon the transfer of a landlord's interest in leased property. Generally, the transferee steps into the shoes of the transferor, inheriting rights and liabilities attached to the property, including the right to receive rent—unless there's a contract to the contrary.

However, the proviso to Section 109 draws a clear line: Provided that the transferee is not entitled to arrears of rent due before the transfer... This means prior arrears do not automatically pass to the new landlord. They must be specifically assigned in the transfer deed or a separate agreement. [