Am I liable to pay the rent and fines after selling the shop if there is no contract with the landlord?

Dear.

The tenant remains responsible for paying rent to the landlord if the contract is still in his name.

According to UAE law, if the shop was sold, ownership was transferred to the new owner, and the contract was renewed in your name unlawfully after your contract expired, you should not be liable for paying rent after the contract expired.

However, the details should be carefully examined with a lawyer regarding how the cheques were paid after the contract ended.

Feel free to contact us via WhatsApp for more details. Our office specializes in such cases and legal procedures in the UAE.

Hello,

You are not liable for the rent and fines after the expiration of the contract in March 2023 and the sale of the shop.

The new owner, who should have handled the lease renewal or cancellation, is responsible for any obligations going forward.

If you are being incorrectly sued for rent after the expiration of the lease and the sale of the shop, you need to dispute the case in court, especially if the landlord is using outdated documents and not acknowledging the sale and the change of ownership.

For a detailed discussion, kindly share your Whatsapp number.

Dear Client,

Thanks for your question!

I hope you are doing well. I will assist you in this matter.

Based on the information provided, you may have a strong case to argue against liability for rent and fines after March 2023. Key points in your favor include:

1. You notified the landlord of the shop's sale in February 2022.

2. Your original contract expired in March 2023, with all payments made.

3. No new agreement was made after March 2023.

4. The landlord's use of your Emirates ID without consent is questionable.

5. Collection of cheques without a valid contract is problematic.

However, given the complexity of the situation, it's crucial to consult with us; we can review all documents and provide specific guidance on proceeding with your case before the Rental Disputes Centre.

Thanks & Regards,

ABDUL WAHIED

Dear Questioner,

Thank you for reaching out and providing the details of your case.

Based on the information you've shared, here’s an overview of the key points regarding your situation:

Transfer of Ownership and Liability: Since you informed the landlord about selling the shop and provided the Power of Attorney to the new owner, the landlord should have transferred the lease obligations to the new owner.

If the new owner temporarily used your EID for the contract renewal but never formalized the transfer with the landlord, this could create confusion regarding liability.

However, since you no longer hold ownership of the shop, the landlord may not have a valid claim against you unless it can be proven that the lease was still in effect under your name.

Contract Expiration and Non-Renewal: Your contract expired in March 2023, and you mentioned that no new agreement was made with the landlord after that date.

Since the trade license expired in December 2023 and no new contract was signed, the landlord’s attempt to collect rent after the contract’s expiration could be contested.

The lack of a valid contract after March 2023 and the fact that the cheques were collected without a renewal may indicate that the landlord is unlawfully continuing the lease without proper agreement.

The Case Against You: Given that the landlord filed a case against you using old documents, and assuming that the shop has been sold and the new owner is responsible for the lease, you may not be liable for the rent and fines.

It’s important to request a copy of the current lease agreement or documentation showing that the new owner has officially assumed responsibility.

Next Steps:

Challenge the Claim: We can challenge the landlord’s claim based on the expired contract and the failure to formalize the transfer of the lease to the new owner.

Request Documentation: We should ask the landlord for proof of the renewed contract, the new lease agreement, and any relevant documents that show the lease has been transferred to the new owner.

Additionally, we can request clarification about the payments made by the landlord after the contract expires.

Please let me know if you'd like us to proceed with further legal action or require assistance with gathering any documents for this case.

Best regards,

Mohammed Salah

Legal Consultant

Greetings of the day,

Your situation involves several key legal points that need to be addressed in light of UAE tenancy laws and property-related agreements.

1. Renewal in Your Name: If the contract was renewed under your name using your Emirates ID, even with the understanding that it was temporary, you could still be considered liable for the obligations of that contract unless a formal transfer or novation of the lease was executed.

2. If no formal agreement or contract exists for the period after March 16, 2023, your liability may be limited to the terms of the original contract.

However, if the landlord has accepted a Cheque or payments in your name, it could imply continued tenancy or your responsibility for the lease.

3. Your landlord's refusal to provide a No Objection Certificate (NOC) has caused complications. Without an NOC or formal assignment, the responsibility technically remains with you.

4. The sale of the shop and transfer of POA to the new owner should ideally have been followed by a formal notice and agreement with the landlord to transfer the lease obligations.

5. The landlord's acceptance of payments and Cheque from a third party could support your defense that you are no longer responsible for the lease.

This would need to be proven through documentation and bank records showing the source of payments.

Important:

"Hire a lawyer to prepare a robust defense and represent you in court. They can help challenge the validity of the

landlord's claims and ensure the new owners are held accountable for any rent obligations".

Best Regards,

Sara Al Saedi Advocates & Legal Consultants

Hello,

In this case, you should have formally notified the landlord about the transfer of ownership and ensured the termination of your original lease agreement.

Additionally, it was essential to coordinate with the landlord and the new buyer to establish a new lease agreement in the buyer’s name and replace any post-dated cheques issued under your name.

However, you can raise these matters before the court and present evidence of the property sale, the Power of Attorney given to the new owner, and the landlord's refusal to provide a No Objection Certificate (NOC).

You may also request the court to include the current owner as a party to the case. This can help ensure that any liabilities imposed by the court are directed toward the rightful party responsible for the property.

For legal assistance in preparing your defense, representing you in court, and addressing these issues effectively, feel free to contact me by phone or email.

Are you responsible for paying rent and fines?

Probably not, because:

You sold the store and are no longer the legal owner.

The rents after March 2023 were paid by a third party, which means that another party is responsible.

The lease has expired and has not been renewed in your name.

The trade license has expired, which proves that you were no longer running the store.

But you will need to take the appropriate legal action to challenge the claim and prove these facts in court.

For assistance, please contact us by phone or WhatsApp.

Hello dear,

If you have the papers that prove your position, you can support your position through a response memorandum and a document portfolio, and the matter will be discussed.

However, I advise you to explain that and support your position with the chronological sequence of the events you went through.

Ola Zein El Dine

Legal Adviser

Thank you for reaching out and sharing the details of your situation. Based on the information you have provided, it appears that there are several important factors to consider in determining your liability for the rent and fines.

POA and Sale of the Shop: If you properly sold the shop, transferred ownership, and provided the Power of Attorney (POA) to the new owner, it should be the new owner's responsibility to handle any contractual obligations with the landlord.

The landlord's refusal to provide the NOC for the transfer and the subsequent handling of the cheques after the expiration of the contract is concerning.

Expired Contract and Payments: Since your contract expired on March 16, 2023, and the cheques were paid by a third party until September 2024, it seems that the landlord continued accepting payments even without a valid contract.

Without a valid lease agreement, the landlord may not have the legal grounds to pursue you, especially if the new owner should have been the one named in the contract from March 2023 onward.

Liability: It appears that your responsibility for the rent may have ended when the contract expired and the ownership was transferred to the new owner.

If the new owner took over, and the landlord continued to accept cheques without a valid contract, you may not be liable for the rent or fines, provided there was a proper transfer of responsibility to the new owner.

Given that the landlord has filed a case against you with old documents, this may be a point you can raise in your defense, as it shows the landlord is using outdated information and not updating the agreement as per the new ownership.

I recommend scheduling a meeting to discuss your case further and to review all the relevant documents, including the POA and any correspondence with the landlord, to build a strong defense.

Please feel free to reach out to me through WhatsApp, phone, or email to discuss the next steps and arrange for legal representation.

Looking forward to assisting you with this matter.

Best regards,

Suhail Rana