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The effect of Lease Agreements on different Parties

When the owner of a residential property wants to lease his property, an agreement must be reached between the lessor and lessee in terms of which the rental amount and period must be agreed upon. This agreement may be an oral or written agreement.  Both methods establish a binding contract.  It is advisable that parties entering into a lease agreement should have a written contract, because it lessens the possibility of disputes.  Common law regulates the relationship between lessor and lessee if a written contract doesn't exist.

When a written lease agreement is signed, both parties are bound to all the terms and conditions as stipulated.  It is therefore of utmost importance to read through the contract before signing it.  Oral agreements undertaken by the parties must be reflected in the contract or in an addendum, which both parties should sign and date.

Written lease agreements usually have notice periods which may be used to either cancel the contract or vacate the property.  In the absence of such a clause, a normal calendar month (30 days) is applicable, as determined by common law.

If the lessor gives the lessee notice to vacate the property and the lessee refuses, the lessor may launch an application in terms of the Prevention of Illegal Eviction of Unlawful Occupants Act in a Magistrates Court within the jurisdiction of the residence.  The application must adhere to certain judiciary requirements and notice of 14 weekdays must be given to the lessee and Municipal Manager.  If the lessee wants to oppose the eviction application an opposing affidavit must be filed, explaining their defence.  They should also be present at the proceedings on the applicable court date.

If a Court of Law decides that the lessee is occupying the property unlawfully, a writ of eviction may be granted.  This stipulates that the property must be vacated by a certain date.  If not, the Sheriff will be instructed to evict the occupants.

The Prevention of Illegal Eviction of Unlawful Occupants Act is not applicable to business premises.  A lessor cancelling a lease agreement may apply for a writ of eviction and instruct the Sheriff to proceed with the eviction.