Is a Landlord Liable for Compensation After Eviction Due to Sale in the UAE?

  • Amer Berry

In a recent rental dispute, we represented a landlord facing a compensation claim from a tenant. The tenant sought compensation, alleging that after vacating the property due to an eviction notice for sale, the property was subsequently re-rented. This raised the question of whether the landlord was liable for compensation under such circumstances.

Background of the Case

The tenant vacated the property following an eviction notice that was issued as part of the sale of the property. After the tenant moved out, the landlord entered into a sales agreement with a buyer. However, during the process of registering the sale with the Land Department, there were delays due to incomplete documentation. To avoid the property remaining unused, the landlord issued a legal power of attorney to the buyer, granting them authority to lease the property until the sale’s finalization and ownership transfer.

Legal Defense and Evidence

Our defense centered around the fact that the landlord did not re-rent the property after the tenant vacated. Instead, the property was sold, and steps were immediately taken to register the sale. To enable the buyer to utilize the property during the registration delay, the landlord lawfully issued the power of attorney, allowing the buyer to rent the property for investment purposes.

In court, we presented expert evidence showing:

  • A valid sale agreement was signed between the landlord and the buyer.
  • A legal power of attorney was granted to the buyer to protect their interest while awaiting the sale’s completion.
  • The buyer used this power to lease the property until the necessary documents were obtained and the transfer of ownership was registered.

Furthermore, it was demonstrated that the property had been under the buyer’s possession and control from the time of the power of attorney issuance until the transfer was finalized. Upon receiving the required documents, the property was successfully registered in the buyer’s name.

Conclusion: No Compensation Liability

The court was convinced by the evidence presented, confirming that the landlord followed all legal procedures in accordance with UAE law. There was no re-renting of the property by the landlord, and the actions taken to authorize the buyer’s use of the property were lawful. As a result, the court ruled that the landlord was not liable for compensation to the tenant.

This case highlights the importance of adhering to legal procedures in property sales and rental transactions. It also demonstrates that landlords can safeguard their interests by issuing powers of attorney during ownership transfer delays, without being held liable for tenant compensation, as long as proper legal steps are followed.

Case Studies

  • 8 October 2024
  • 4 min read



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