Law of Lease

What is a lease? Lease is a contract whereby one party (Lessor/Landlord) undertakes to give the other (Lessee/Tenant), the use of a thing, either partially or in full, for a period of time, in return for a certain or acertainable price, which the Lessee undertakes to pay.

Requirements (Essentialia) Specified property or thing Use and enjoyment of the property For a period (temporary) For a price (rent)

To deliver use & occupation or enjoyment of the property Duties of the Lessor To deliver use & occupation or enjoyment of the property To deliver the property in a proper condition & to maintain the property Not to interfere with the Lessee’s use & to protect him against eviction To compensate the Lessee for additions & improvements To pay taxes

To return the property undamaged Duties of the Lessee To pay the rent To use the property for the purpose for which it was let & to take care of the property To return the property undamaged

Situations where Lessor has remedy Tenant does not pay the rent The tenant misuses the property The tenant fails to return property at end of lease The tenant returns the property in a damaged state

Situations where tenant has remedy If landlord breaches duty to deliver property If landlord fails to maintain property If landlord breaches warranty against interference If property sold during lease If tenant makes improvements to property

Termination of the Lease Expiration of the specified period By notice By agreement Cancellation Supervening impossibility of performance Merger

Lessee may sub-lease unless prohibited Third Parties Lessee may sub-lease unless prohibited May assign rights & duties with consent May cede rights unless prohibited May only delegate duties with consent Huur gaat voor koop

Tacit Hypothec Landlord automatically acquires a hypothec over all movables (even if belonging to 3rd party) on premises as soon as tenant in arrear with rent.

Applies to all residential leases No discrimination Rental Housing Act 50 of 1999 Applies to all residential leases No discrimination Rights of landlords and tenants Inspection Deposits Receipts etc…. Rental housing tribunal

Consumer Protection Act Limitation of period of lease to two years Can cancel on 20 days written notice Requirement to bring any limitation of risk to tenants attention Must not be unfair Plain language etc