Real Estate Investor Magazine May 2025 edition May 2025 | Page 84

PROPERTY MANAGEMENT
PROPERTY MANAGEMENT
Even though Med Office appeared as the registered owner at the time, it was not the lawful owner. The transfer had been unlawful and void. Med Office therefore had no legal authority to enter into any lease agreement that would bind the true owner, the CC.
2. Huur Gaat Voor Koop Does Not Always Apply
The well-known huur gaat voor koop rule provides that a valid lease will survive the sale of a property. It protects tenants by allowing the lease agreement to remain in place when a new owner takes transfer of the property. The new owner, in essence, steps into the shoes of the previous one.
Crucially however, this rule only applies where there has been a valid sale and lawful transfer of ownership.
In this case, there was no valid sale to Med Office and no valid transfer. The“ new owner”( Med Office) never acquired valid title, so there was no legal change in ownership for the rule to apply to. As the court noted, huur gaat voor koop has no application where ownership never lawfully changed hands.
3. No Ratification, No Agreement
Evolv also argued that the liquidators had, through their conduct, accepted the existing lease or concluded a new one.

84 REI MAGAZINE MAY 2025