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  • Transferee Landlord's Rights to Rent Arrears - The transfer of property includes all incidents of right, title, and possession, which generally encompasses the right to claim rent accrued prior to transfer. However, the transferee is typically not entitled to rent arrears due before the transfer unless specific conditions are met ["SARDAR INDRAJIT SINGH And ANR vs ASHIMA KHATOON And ORS - Jharkhand"], ["2025 0 Supreme(Jhk) 636"], ["2025 Supreme(Online)(Jhk) 3354"].

  • Entitlement to Rent Arrears Prior to Transfer - The law indicates that a transferee landlord is not entitled to recover rent due before the transfer date unless the tenant had reason to believe the transfer was made and continued paying rent to the original landlord in good faith. If the tenant paid rent to the original landlord without knowledge of the transfer, they are not liable to pay again to the transferee ["2023 0 Supreme(Jhk) 1377"], ["2024 Supreme(Online)(Bom) 4211"], ["2022 Supreme(Online)(Chh) 1611"].

  • Conditions for Claiming Rent and Eviction - Prior to filing an eviction suit for non-payment of rent, a demand notice is a necessary condition. If such notice is absent, the claim for arrears and eviction may be challenged. Additionally, the tenant's acknowledgment or attornment is not mandatory for the transfer to be valid, and notices under Section 106 of the Transfer of Property Act are appropriate ["2025 Supreme(Online)(Del) 3560"].

  • Rights of the Tenant and Transfer Effects - A tenant can maintain connection with the premises after transfer through family members residing in the property. The tenant's obligation to pay rent depends on whether they were aware of the transfer; ignorance of transfer can prevent the transferee from claiming arrears prior to transfer ["2024 Supreme(Online)(Bom) 4211"], ["2024 Supreme(Online)(Bom) 7783"].

  • Legal Precedents and Statutory Provisions - Courts have held that a transferee's right to rent arrears is limited to those accruing after the transfer if the tenant was unaware of the transfer. The transfer does not automatically entitle the new landlord to recover arrears prior to transfer unless the tenant had reason to believe the transfer and continued paying rent in good faith ["SARDAR INDRAJIT SINGH And ANR vs ASHIMA KHATOON And ORS - Jharkhand"], ["2025 0 Supreme(Jhk) 636"].

Analysis and Conclusion:The general principle is that a transferee landlord is not entitled to rent arrears that accrued before the transfer unless the tenant was aware of the transfer and paid rent in good faith to the original landlord. The transfer of ownership does not automatically transfer the right to recover pre-transfer rent unless specific conditions are met, such as the tenant's knowledge and continued payments. Therefore, in most cases, the transferee landlord's entitlement to rent in arrears is limited to amounts due after the transfer date, unless evidence shows the tenant's awareness and continued payment to the original landlord ["SARDAR INDRAJIT SINGH And ANR vs ASHIMA KHATOON And ORS - Jharkhand"], ["2023 0 Supreme(Jhk) 1377"], ["2024 Supreme(Online)(Bom) 4211"].

Transferee Landlord Rights: Recovering Rent Arrears Accrued Before Property Transfer

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. [

#RentArrears, #TPASection109, #LandlordRights
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