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Lease Renewal Agreement South Africa

Who would use a lease? A landowner and tenant may use an extended tenancy agreement if they agree that the tenant can lease the property for a longer period than originally agreed, i.e. if the parties agree to renew the lease. We will also propose some recommended formulations for a renewal clause that landlords and tenants could use to avoid common pitfalls, as discussed. However, when the tenant tried to exercise the second renewal option for a third five-year term, the landlord stated that the proposed extension was possible with an agreed rent of R150,000 per month, plus VAT. In response, the Tenant stated that a fair rent was an escalation of 8% per year from the prevailing rent at the time. The Tenant also suggested that the matter be referred to arbitration. The lessor rejected this assertion and proposal and applied for eviction from the tenant, believing that the lease had expired because of the effect of the period. First, it serves as a reminder that the courts do not interfere in the conduct of an agreement and always respect the discretion of the parties to approve or not consent to it. In the words of Chief Justice Innes, “it is a solid principle of the right that a man, when he signs a contract, is supposed to be bound by the ordinary meaning and effect of the words that appear above his signature.” The facts were that the parties had entered into a lease agreement for gas stations in Paarl.

The lease began on December 1, 2007 and was initially scheduled to last five years, with an extension period of “5 plus 5 years.” The rent at the beginning was 18,000 R 18,000 per month and increased by 8% per year over the initial period. What does the extension of the rental say? The standard extension of the lease agreement consists of: introduction; Extending the period rental and fees; General. The Tenant announced his intention to renew the lease with a declared rent, but this was not enough to create a new lease. The essence of a tenancy agreement is that there must be one thing and a fixed rent in which the tenant must use and enjoy the thing.