KRG LEASE CHAPTER
INTRODUCTION
GENERAL PRINCIPLES:
Letting and hiring of things governed by common law (or Roman-Dutch) with some
statutory additions.
Rent control act was also applicable – placed limit of charged & limited grounds lessee
convicted
Letting and hiring of thing or property (what we will discuss)
Letting and hiring of services
Letting and hiring of job or contract
Rental Housing Act 50 of 1999 (“RHA”) governs the relationship between landlords and
tenants in respect of leases for housing purposes.
PURPOSE:
Define responsibility of government in respect of rental of housing
property
Create mechanisms to promote the provision of rental housing property
Promote assess to adequate housing – proper function of market
Provision of establishment of rental housing tribunals (enforce this act)
a. RHA enforced by Rental Housing Tribunals. (16.05)
b. Tribunal can intervene if there is an “unfair practice”. (16.06)
Any act or omission by landlord or tenant in
contravention of act
Practice prescribed as unreasonably prejudicing
the rights or interest of tenant or landlord
c. Tribunal can appoint a mediator, or they can make a ruling
themselves by conducting a hearing
d. Tribunal can make a ruling e.g. one to discontinue
overcrowding; unacceptable living conditions; exploitative
rentals or lack of maintenance.
e. Fail to comply with ruling by tribunal
Criminal action instituted
Conviction -fine or imprisonment not exceeding 2
years may be imposed
, Rights & responsibilities of landlord & tenant relationship
Provides information of lease
Rental Housing Amendment Act 35 of 2014 (“RHAA”) was signed by the President but is not
yet in force.
Not yet law!
RHA gives effect to s26 of Constitution of the Republic of South Africa, 1996. (Para 16.04)
RHA: applicable to residential leases (not to use of movable property, agricultural land or for
business purposes).
RHA applies “dwelling for housing purposes”.
Consumer Protection Act 68 of 2008 (“CPA”) also applies to a lease agreement.
CPA deals with the relationship between lessor (landlord) and lessee (tenant)
CPA may be applied to both residential & commercial leases.
Commercial lease
CPA doesn’t apply where the juristic lessee whose net asset value or annual
turnover is equal or exceeds 2million
At the time of entering the lease transaction in the ordinary course of business
3 DIFFERENT DEFINTIONS OF A LEASE
Lease of things or property: reciprocal agreement
Agreement binding two parties equally
in terms of which the lessor undertakes to confer to the lessee temporary
use and enjoyment of a thing for a counter-performance (usually in the form
of rent).
RHA: lease is an agreement of lease concluded between tenant and landlord regarding a
dwelling for housing purposes.
Landlord – owner property, his authorised agent
Tenant – lessee of dwelling
Dwelling – any house, hostel, shack, flat, apartment, outbuilding that forms
part of a property
INTRODUCTION
GENERAL PRINCIPLES:
Letting and hiring of things governed by common law (or Roman-Dutch) with some
statutory additions.
Rent control act was also applicable – placed limit of charged & limited grounds lessee
convicted
Letting and hiring of thing or property (what we will discuss)
Letting and hiring of services
Letting and hiring of job or contract
Rental Housing Act 50 of 1999 (“RHA”) governs the relationship between landlords and
tenants in respect of leases for housing purposes.
PURPOSE:
Define responsibility of government in respect of rental of housing
property
Create mechanisms to promote the provision of rental housing property
Promote assess to adequate housing – proper function of market
Provision of establishment of rental housing tribunals (enforce this act)
a. RHA enforced by Rental Housing Tribunals. (16.05)
b. Tribunal can intervene if there is an “unfair practice”. (16.06)
Any act or omission by landlord or tenant in
contravention of act
Practice prescribed as unreasonably prejudicing
the rights or interest of tenant or landlord
c. Tribunal can appoint a mediator, or they can make a ruling
themselves by conducting a hearing
d. Tribunal can make a ruling e.g. one to discontinue
overcrowding; unacceptable living conditions; exploitative
rentals or lack of maintenance.
e. Fail to comply with ruling by tribunal
Criminal action instituted
Conviction -fine or imprisonment not exceeding 2
years may be imposed
, Rights & responsibilities of landlord & tenant relationship
Provides information of lease
Rental Housing Amendment Act 35 of 2014 (“RHAA”) was signed by the President but is not
yet in force.
Not yet law!
RHA gives effect to s26 of Constitution of the Republic of South Africa, 1996. (Para 16.04)
RHA: applicable to residential leases (not to use of movable property, agricultural land or for
business purposes).
RHA applies “dwelling for housing purposes”.
Consumer Protection Act 68 of 2008 (“CPA”) also applies to a lease agreement.
CPA deals with the relationship between lessor (landlord) and lessee (tenant)
CPA may be applied to both residential & commercial leases.
Commercial lease
CPA doesn’t apply where the juristic lessee whose net asset value or annual
turnover is equal or exceeds 2million
At the time of entering the lease transaction in the ordinary course of business
3 DIFFERENT DEFINTIONS OF A LEASE
Lease of things or property: reciprocal agreement
Agreement binding two parties equally
in terms of which the lessor undertakes to confer to the lessee temporary
use and enjoyment of a thing for a counter-performance (usually in the form
of rent).
RHA: lease is an agreement of lease concluded between tenant and landlord regarding a
dwelling for housing purposes.
Landlord – owner property, his authorised agent
Tenant – lessee of dwelling
Dwelling – any house, hostel, shack, flat, apartment, outbuilding that forms
part of a property
