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THE BANK HAS TAKEN OVER THE HOUSE WE RENT. ARE THEY OUR NEW LANDLORDS ?.

By Editor



Salim used his rentals in Kivulu to get a bank loan. After making endless payments for two years, he realized he was at risk of losing his rentals and the new pieces of land he had bought. So made a tough decision and gave away the rentals to the bank to collect all the rent for the next five years to pay off the loan. 


This morning Nantume, his tenant, called him because she found a notice that the bank was taking over the rentals, and she wanted to know if she had a new landlord now.


 WHAT DOES THE LAW SAY?


That collection of rent does not make someone a tenant. Even if the bank decides who can rent the houses, this may not be enough to make them the landlords. 


This is because the overall ownership remains with Salim, and even if the bank is collecting its loan money, Salim still has allowed them to collect and benefit from the rent. 


Secondly, the responsibility to make sure the rentals are in good condition by repairing them remains with Salim. This means that Salim remains the landlord even if he cannot benefit from the rent directly for the next five years.


📷:New Vision


#BarefootLaw


#osutayusuf

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