MANAGING
What often also happens is that a written lease
agreement is not signed by both parties. While
verbal leases are legal in South Africa when renting
property, this is inadvisable as it is very difficult to
prove what the conditions of the lease and agreements
are between the two parties.
Another common mistake made is that on expiry of
a lease, a new agreement is not entered into between
the two parties. Although our law recognises that
on expiration of a lease the parties continue on a
month to month basis if there has been no formal
arrangements made, it is advisable to enter into a new
lease agreement and formalise the contract. The onus
is on the landlord or agent to contact the tenant before
the lease expires to establish whether they will be
renewing the lease.
“Tenants should also be
aware that their deposit is
meant to accrue interest for
the time it is held by
the landlord...”
This sort of scenario happens time and again and
can lead to much animosity between the two parties,
as did in a case (Marais N.O. and Others v Kondos)
recently covered in a STBB newsletter. Although this
was a commercial case, the same situations arise in
residential cases too, said Steward. In this case a lease
was signed for six months, giving an option to renew
for a further six months. After the initial six month
period was up, the tenant did not renew but stayed on
and continued paying the rental each month.
He then put in an offer to purchase the property
but could not get the bond approved. The tenant was
instructed via attorney asking him to pay the full
purchase price or vacate the property, giving him one
month’s notice. In the meantime, the landlord had
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Residential Handbook 20