Transfer of Property Act Section 109 — Rights of lessor’s transferee
CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY — (B) Rights and Liabilities of the Lessee
General
Summary
When a landlord transfers the leased property, or part of it, to someone else, that new owner generally steps into the landlord’s shoes and gets the same rights and, if the tenant chooses, the same duties under the lease—but only while the new owner actually owns the property. The original landlord still remains responsible for their own obligations under the lease unless the tenant decides to hold the new owner responsible instead. The new owner cannot claim rent that was due before the transfer, and if the tenant pays rent to the original landlord without knowing about the transfer, the tenant does not have to pay that rent again to the new owner. If only part of the property is transferred, the landlord, new owner, and tenant can agree on how to split the rent or premium, and if they cannot agree, a court with authority over the property can decide.
Official Text
If the lessor transfers the property leased, or any part thereof, or any part of his interest therein, the transferee, in the absence of a contract to the contrary, shall possess all the rights and, if the lessee so elects, be subject to all the liabilities of the lessor as to the property or part transferred so long as he is the owner of it; but the lessor shall not, by reason only of such transfer, cease to be subject to any of the liabilities imposed upon him by the lease, unless the lessee elects to treat the transferee as the person liable to him:
Provided that the transferee is not entitled to arrears of rent due before the transfer, and that, if the lessee, not having reason to believe that such transfer has been made, pays rent to the lessor, the lessee shall not be liable to pay such rent over again to the transferee. The lessor, the transferee and the lessee may determine what proportion of the premium or rent reserved by the lease is payable in respect of the part so transferred, and, in case they disagree, such determination may be made by any Court having jurisdiction to entertain a suit for the possession of the property leased.