The World Federation One Stop Fiqh

Ruling 2225

If the lessor or the lessee dies, the rental agreement does not become void. However, if [the house does not belong to the lessor and] only the usufruct of the house while he is alive belong to him – such as the case wherein someone else specifies in his will (waṣiyyah) that as long as he [i.e. the lessor] is alive, the usufruct of the house will belong to him – then, in the event that he gives the house on rent and dies before the end of the rental period, the lease is void from the time he dies. And if the current owner of the house endorses the rental agreement [for its remaining period], it is valid, and the rental fee for the period remaining after the death of the lessor belongs to the current owner.