ISLAMABAD (Dunya News) – The Supreme Court has ruled that upon the death of a property owner, their legal heirs automatically assume ownership of the property and are entitled to receive rent from tenants without the need for a new lease agreement.
In a crucial decision, the court upheld the Sindh High Court's ruling, which ordered tenants to vacate commercial properties and hand them over to the rightful heirs within 60 days.
The appeal against the high court's ruling was heard by a division bench, consisting of Chief Justice of Pakistan Yahya Afridi and Justice Shakeel Ahmed, who issued a four-page written judgment.
The case arose when the son of the deceased landlord issued a legal notice to the tenants demanding overdue rent payments, which the tenants failed to make.
While the tenants acknowledged the landlord's death and attended the funeral, they continued to deposit rent in the name of the deceased owner rather than paying it to the legal heirs.
The apex court’s ruling emphasized that paying rent to the deceased's estate, despite notice being served to the tenants, does not constitute valid payment under the law. The court declared that tenants who intentionally defaulted on rent payments were responsible for their eviction.
The court's decision has clarified that once a legal heir takes ownership of the property, they have the right to collect rent.