How long can a lease be in South Africa?
10 years to 99 years
A long term lease entitles the lessee to a limited real right over a property for an agreed period of time ranging from 10 years to 99 years. When it comes to immovable property in South Africa, we tend to focus our attention on the sale and transfer of ownership, and the short-term rental or lease of such property.
What are the requirements for a lease agreement?
A written lease agreement must contain:
- The names and addresses of both parties;
- The description of the property;
- The rental amount and reasonable escalation;
- The frequency of rental payments, i.e. monthly;
- The amount of the deposit;
- The lease period;
- The notice period for termination of contract;
What is a lease agreement South Africa?
A lease agreement is entered into when one person (“landlord”) gives use and enjoyment of his/her property to another person (“tenant”) for a specific period of time in return for the payment of rent. In terms of the Act, a landlord must provide his/her tenant with a written lease agreement on the tenant’s request.
What is a notarial lease?
Notarial lease agreements are defined as long-term agreements on immovable property attested by a Notary Public and registered in the Deeds Office. Registrations of notarial leases are effected in the Deeds Office in the form of a Notarial Deed against the Title Deed of the lessor.
How does a 99-year lease work South Africa?
So, how does it work? The Waterfall Estates website describes the 99-year lease process as the following: “On the initial registration of the lease agreement, the lessee pays to the lessor a once off upfront lump sum lease amount, for the right to occupy the land as per the agreement for a term of 99 years.
Can a landlord cancel a lease?
If a tenant fails to pay rent, and there is reason to suspect that the tenant may not pay future rent, the landlord may cancel the lease. Whether or not the court grants the cancellation depends on the wording of the lease. For cancellation to be justified, the failure to pay must represent a major breach of the lease.
What is the significance of a 99-year lease?
A 99-year lease is generally the longest possible lease term for a piece of real estate property. It used to be the longest possible under common law. Many landlords use ground leases as a way to retain ownership of their property for planning reasons, to avoid any capital gains, and to generate income and revenue.
Does a 10 year lease have to be registered?
Leases for more than seven years must be registered with the Land Registry, and it’s usually the tenant’s responsibility to complete that registration. If they fail to do so within two months of completion, it is not a valid legal lease and only takes effect as an agreement for a lease (a contract).
Can a landlord cancel a lease South Africa?
The landlord, on the other hand, “can only cancel a tenant’s lease if the tenant has breached the lease,” and if, “after having given 20 business days written notice to the tenant to remedy the breach,” the tenant still fails to comply.