Sale of Leased Shop and Eviction by New Owner
In January 2021, Mrs. Aisha leases a shop in Nizwa for 5 years at OMR 700 per month. The lease is in writing and registered in the land registry. She runs a tailoring business and has invested OMR 12,000 in fittings. In June 2024, the landlord sells the building to Mr. Khalid. The sale contract does not mention the lease. In August 2024, Mr. Khalid serves a notice: 'I will demolish and rebuild; vacate within 30 days.' Mrs. Aisha has 3 years left. She also sublet a small corner to a mobile phone repairman six months ago without written consent, though the landlord knew and accepted rent. Mr. Khalid refuses to accept rent from her.
1. Does the sale terminate the lease? Explain the position of the new owner.
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No. The sale of leased property does not by itself terminate a fixed-term lease. Under the Civil Transactions Law, the purchaser takes the property subject to the lease and steps into the landlord's position. Because this lease is in writing and registered in the land registry, it is effective against Mr. Khalid as a third party. He cannot ignore it by refusing rent. His refusal to accept rent does not terminate the lease; if anything, the tenant should document the tender of rent. The sale contract's silence about the lease does not affect Mrs. Aisha; the purchaser should have checked the registry. The lease continues until January 2026 unless terminated by agreement, court order, or a lawful ground.
2. Can Mr. Khalid evict for demolition or reconstruction? What must he prove?
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A landlord cannot evict by notice or self-help. Eviction requires a court judgment. If the law allows termination for demolition or reconstruction, Mr. Khalid must prove a genuine, approved project: building permits, approved plans, financing, and that the work cannot reasonably be done with the tenant in place. He must also give proper notice and pay compensation for the remaining term and the tenant's investment where appropriate. A bare statement that he will demolish and rebuild is not enough. The court will balance the parties' interests and may grant the tenant time to relocate. Mrs. Aisha should continue paying rent into court or a safe account if he refuses it, and claim compensation for her OMR 12,000 investment and loss of goodwill.
3. What is the effect of the unauthorised sublease and the landlord's knowledge?
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The sublease without written consent may breach the lease if the contract prohibits subletting. But the landlord knew about it and accepted rent for six months, which may amount to implied consent or waiver. Mr. Khalid stands in the landlord's shoes, so he cannot rely on a breach that his predecessor waived. He must still follow the lease and the law. The subtenant may have a right to remain or to reasonable notice. The advocate should regularise the sublease in writing, disclose it to the new owner, and keep evidence of the landlord's knowledge and rent acceptance. If the lease allows termination for unauthorised subletting, the court will still require notice and may refuse termination if the breach is minor.