Cancellation Of Commercial Lease Agreement South Africa

However, the CPA is vague because it does not define an “appropriate penalty” and only stipulates that an appropriate penalty can be calculated for early cancellation. However, in practice and in SA law; a person who is damaged by the actions of another person is only allowed to recover the damage he or she has actually suffered; and can prove it. In practice too; It usually takes no more than a month to find another tenant. These fees may also include a reasonable amount due to the loss of rental income, once the tenant has terminated the lease and cleared the property. The landlord must also credit the tenant with an amount that remains the tenant`s property at the time of termination. This applies only in cases where the tenant decides to terminate the tenancy agreement at any time before the official expiry. Consumer Protection Act 68 of 2008 (CPA) makes a clear distinction between the early termination of the lease by an individual through Section 14 of the CPA; and the situation of a corporation that cannot use section 14, since it cannot do so with respect to paragraph 14, paragraph 1, which states that “this section does not apply to transactions between corporations, regardless of their annual turnover.” The tenant is responsible to the landlord for all amounts against the lessor under the fixed-term tenancy agreement until the termination date. In other words, the tenant remains responsible to the landlord for the rent arrears and all other amounts owed up to the termination date. Although it is possible to terminate a commercial lease prematurely, it does not come without its own effects. In the spirit of the Consumer Protection Act, tenants have the right to terminate their leases as long as they are entitled to them and to do so in accordance with all cancellation criteria or requirements. Tenants who do so must do so in writing and inform in writing for at least 20 days. This must be done correctly and correctly in order to be fully compliant with the CPA.

Tenants are now relying on the Consumer Protection Act (CPA) 2008 to legally evade commercial leases. Section 14 of the CPA Regulation on the expiry, extension and termination of leases provides that no fixed-term contract can currently exceed 24 months.