Help! Buyer fled without paying rent

 

Help! Buyer fled without paying rent

A claim should be filed by the owner of the shop against a legal entity.

By Ashish Mehta

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Published: Sun 10 Dec 2017, 7:00 PM

Last updated: Sun 10 Dec 2017, 9:53 PM

I had rented a shop in Sharjah with a contract valid from April 2015 to April 2016. I found a buyer and transferred the trade licence to the buyer's name.Later, I came to know that the company filed a case against me at the Sharjah Tenancy Dispute Centre. I got to know that the buyer had fled without paying the rent. Please help!
You have not mentioned whether you sold your shares in the business entity to another person or if you transferred the tenancy of the shop to the company of the person who bought the shop from you. It is assumed that the tenancy contract for the shop was in the name of your business entity. In case you sold your shares in your business entity to another person, then it is the responsibility of the business entity to pay the rent to the owner of the shop. In case you sold the shop alone and the new tenancy contract was issued in the name of another business entity, then it is the responsibility of the new tenant to pay the rent. In both cases, the tenant is a legal entity and not you or the new tenant personally. Therefore, a claim should be filed by the owner of the shop against a legal entity. You may present the documentary evidence available with you to prove to the Sharjah Tenancy Dispute Centre, which prove that you are not the tenant and therefore the complaint should not be against you
KNOW THE LAW
In case you sold your shares in your business entity to another person, then it is the responsibility of the business entity to pay the rent to the owner of the shop.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.


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