TENANTS IN THE PROPERTY - KNOW THE LAW
Category Property Advice
If there are tenants living in the property (with or without a written lease), their rights must be carefully checked.
Under South African law, we follow the principle of "Huur gaat voor koop" - which means a lease takes preference over a sale. The tenant has the right to stay in the property even if it is sold.
If the Purchaser wants to move in after buying, it is critical to:
· Check the lease agreement carefully (or get a summary of its terms)
· Understand the end date of the lease
· Check if the tenant has the right to renew
· Confirm if the Purchaser will be taking over (ceding) the lease
If the lease is to be taken over:
· The Purchaser must get a copy of the lease before signing the sale agreement
· The Purchaser must confirm in writing that they accept the lease
If needed, a special addendum must be added to the sale agreement to cover all lease terms clearly
Author: OYSTER
