What effect has the Consumer Protection Act 68 of 2008 had on the cancellation of a lease agreement?
Although not specifically defined in the Consumer Protection Act, the landlord and tenant relationship in respect of residential leases falls within the definition of supplier and consumer.
Section 14 of the Act deals with the expiry and renewal of fixed-term agreements (lease agreements) and states that the consumer (tenant) may cancel the fixed-term agreement upon expiry of its fixed term without penalty or any charge or at any time by giving 20 business days’ notice in writing.
The supplier to a fixed term agreement (landlord) may also cancel the agreement 20 business days after giving written notice to the consumer of a material failure by the consumer to comply with the agreement, unless the consumer has rectified the failure in that time.
If neither the tenant nor the landlord prematurely terminates a lease agreement and the agreement runs its course, it will be automatically continued on a month to month basis unless the tenant expressly directs the landlord to terminate the agreement on the expiry date or agrees to a renewal of the lease agreement for another fixed term.
If the tenant prematurely cancels the agreement, he/she remains liable to the landlord for any amounts owed to the landlord in terms of that agreement up to the date of cancellation and the landlord may impose a reasonable cancellation penalty.
Grant Wallace says
Morning, my landlord’s rental agent has prematurely provided me notice of the lease. The cancellation clause in lease allows the landlord to cancel if he sells the house or wishes to move in himself. I, the tenant have not breached any requirement of the lease, which I understand is the only basis, regardless of what the cancellation clause says, in which the landlord cancel the lease according to law. Therefore the cancellation clause in the lease is illegal and cannot be enforced.
Kindly confirm / advise please
Shanaaz Harris-Shah says
We have received notice from our landlord after numerous meetings after the initial interview stating that we would only rent if it is “rent to buy” option which she agreeds upon. We were to see lawyers in order to setup the necessary documents. After moving in when we rrceived the lease agreement I noticed that it was merely a year to year lease, we again confronted her about this not being what we originally agreed upon as we would have never moved in. She again assured us that the rent to buy option is still in play, we then signed the lease based on the information/assurance we received from her.
Now 7months into our lease she has given us notice because she and her partner where unsuccessful in their application for a house they wanted to rent and now have decided to move into the house themselves. My problem is not necessarily with the notice but reallt what happens if we dont find alternative living arrangements. She has also not been co operation with our request for prove of the reason we have to move to other possible tennants due to previous on their side wrt tennants damaging property and/or not paying….the list goes on aka repairs to the house as her responsibility. What do we do if we do not have another pace to live end October, my husband and I also found out we are expecting and alot of other plans, changes to the hiuse were made based on assurance with rent to buy… Can she put us out if we dont have a place to live yet due to the change in contract now? Is she supposed to help us find alternantive living?
Ewald van der Westhuizen says
I provided notice to my landlord on 2 April 2018, hence giving the landlord exactly 20 business days notice 3 April – 30 April. However they now want to impose a penalty that I need to also pay for May as I should’ve given notice 1 April – 30 April. So my question is whether 20 business days really means 20 business days or does it mean a full calendar month?
M. NEL says
Could you kindly please explain what the legal implications/ or what are the procedures to be followed if the owner of the house needs to move back into his/her own property before the tennants lease expires…because of personal reasons..while their is a current lease in place. In other words, an early termination of the lease. Can this be done. I’m basically homeless at the moment. I have tennants in the house, I kindly requested them to find another place about three months ago…..is there a way this can be done??
Adele van Tonder says
I received a notice of not extending my lease agreement with a 30 day notice period ending the 15th of July, Moved in January 2017 and paid pro rata for 15 days until 31 January and thereafter paid each month on the 25th. For example, Paid on 25 January 2017 for period 1 February – 28 Feb. My problem is, there is still 15 days left of my lease agreement after the 31st but I need to move in to my new place 1 July. My landlord expects me to pay for the last 15 days and indicated that my security deposit will be paid 10 days after inspection is done. Can I get out of this without loosing my security deposit? I need to pay one month deposit and one month rent and then it is also expected that I pay my current landlord for the last 15 days of the lease agreement even though I wont use it. Is she not suppose to give 1 calendar months notice? 99% of the property available is from the 1st of each month so now I am forced to pay 2 places if I do not want to be without a home on the 15th of June or loose my security deposit. I am a single mother with only one income so I am very dipendant on the security deposit to secure a new home for my family