Hi, the story explains the “the landlord intends to sell the premises” bit, but not the “the landlord intends to move into the premises” bit. We are in a situation where the landlord decided to move back earlier. We have signed a fixed, 12-month contract/lease agreement, but the owner decided that he wants to move back in after eight months of the contract being in full swing.
I am being told by the agent that this is allowed, simply because of this: “the landlord intends to move into the premises” bit in the contract. We have stuck to our end of the deal, no breach! I’m just wondering if this is okay for him to do? Is this in line with the Consumer Protection Act? The funny thing is, we are also being told that we’re lucky not to pay a penalty fee for leaving earlier! How on earth is this our problem? Is this even legal? If anything, I would like him to pay for my moving/relocation costs.
Additionally, the agent set up the contract to have all interest on the deposit go to herself (agent) and the EAAB. However, in another clause (same contract) it explicitly states that this will go “to the tenant”. Thoughts? This is not in line with how things should be as far as I understand.
Finally, the agent mentioned an estimated charge of R500 that they’ll be deducting off our deposit (for service charges: water and such). Now, this deposit was made back prior to us moving out as we needed this to cover the deposit on our new rental. They were all too happy to do this for us. The thing is, when the deposit was made, they had in fact deducted double this amount which was NOT what I agreed upon. Furthermore, this was only to be paid by me on presentation of an invoice, NOT an estimated invoice. Is this legal? Any help/advice is appreciated. Thanks!
The “huur gaat voor koop” can only be relied on where there is a new owner who bought the property from the original owner and is then bound by a short- or long-term lease that protects the tenant. The rights and obligations in terms of a written or verbal lease agreement are automatically ceded from the seller to the purchaser, and the new owner is bound by the terms of the lease agreement.
In terms of the Consumer Protection Act (CPA) a tenant will be protected for the full term of the lease if there is no material breach by the tenant. The landlord may only cancel the contract for a material breach of contract, after giving the tenant 20 business days’ notice of the breach and the opportunity to remedy the breach. In this case the landlord will be in breach if he decides to cancel the lease and therefore disturbs the tenant’s undisturbed use and enjoyment of the property. The remedies the tenant has at his disposal are:
- Firstly, specific performance can be claimed where a party to a contract has a duty as stipulated in the contract and fails to comply with the duty. In this case the landlord will be compelled to execute his duties in accordance with the contract, for example giving the tenant undisturbed use and enjoyment for the full term of the lease.
- Secondly, the tenant will be entitled to claim for damages for losses he has suffered as a result of the landlord’s breach of contract.
Most often the landlord will not willingly pay damages and a litigation process will be initiated to claim the damages. Alternatively, the tenant can approach the Rental Housing Tribunal.
With regards to the interest on the deposit, the Estate Agency Affairs Act stipulates that interest earned on the deposit invested in the agent’s trust account has to go to the EEAB fund, unless the mandate stipulates that the interest is to accrue for the tenant. When two clauses in the same contract contradict each other it is a matter of interpretation. There is thus no clear-cut answer to this question.
With regards to the estimated charge of R500 deducted from the deposit, an invoice for services rendered should be supplied; alternatively, it must be agreed on in the rental agreement.
Do you have a burning legal query? Email david@hometimes and we’ll be sure to help you get it sorted out
Words: Sonja du Toit, director at MC van der Berg Incorporated