This lease agreement can be used by a letting agent, a landlord and a tenant.
RESIDENTIAL AGREEMENT OF LEASE
1 THE SCHEDULE1.1 The Parties and the Premises1.1.1 The Agent: 1.1.2 The Landlord(s): 1.1.3 Registration number / Identity number: 1.1.4 VAT registration number, if applicable: 1.1.5 The Tenant(s): 1.1.6 Registration number / Identity number: 1.1.7 VAT registration number, if applicable: 1.1.8 The Premises: 1.1.9 Parking Bay Number(s) 1.1.10 SmokingNon-smoking unit1.1.11 Pets Allowed yesno , if yes, number: and details: 1.2 Tenant Costs1.2.1 The Rental: 1.2.2 The Deposit: 1.2.3 Interest on Deposit to accrue to 1.2.4 Parking Fees 1.2.5 The Lease preparation fee 1.2.6 The credit check fee 1.2.7 Rental escalation 1.3 Bank Accounts1.3.1 The Tenant’s nominated bank account: Name of account holder: Bank: Bank branch: Branch code: Account number: Reference: 1.3.2 The Landlord’s nominated bank account:Name of account holder: Bank: Bank branch: Branch code: Account number: Reference: 1.4 Landlord’s addressPhysical: Postal: Home telephone: Work telephone: Cellular: Telefax: Email: 1.5 The Tenant’s addressPhysical: Postal: Home telephone: Work telephone: Cellular: Telefax: Email: 1.6 Arrear InterestInterest rate of % per month on arrear Rental up to a maximum of % per annum1.7 Duration1.7.1 Initial Period is: week(s)month(s)year(s) 1.7.2 Lease start date: 1.7.3 Lease end date: 1.7.4 Where the Initial Period is greater than 24 months the financial benefit to the Tenant is .1.7.5 Key return date and time 1.7.6 Declaration of Tenant regarding Direct Marketing: 1.8 Maximum occupants and Permanent Vehicles1.8.1 Maximum occupants: 1.8.2 Permanent Vehicles 1.9 Financial matters1.9.1 Maximum cancellation penalty not less than Week(s)Month(s)Year(s) but not more than Week(s)'Month(s)'Year(s)' Rental.1.9.2 Sales Brokerage: % of the selling price achieved1.9.3 Surcharge 1.9.4 Brokerage (Payable by the Lessor):1.9.4.1 Finder’s: 1.9.4.2 Management: 2 DEFINITIONSIn this Agreement, the words below mean the following: 2.1 Agent means the party referred to in item 1.1.1 of the schedule; 2.2 Body Corporate means any body corporate or home owners association applicable to the Premises; 2.3 Business Day means any day other than a Saturday, Sunday, or official public holiday in the Republic of South Africa; 2.4 CPA means the Consumer Protection Act 68 of 2008, together with all of its regulations and schedules, as amended from time to time; 2.5 Deposit means the amount/s payable by the Tenant to the Landlord prior to the Tenant moving in to the Premises; 2.6 Direct Marketing means, to approach a person, either in person or by mail or electronic communication, for the direct or indirect purpose of: promoting or offering to supply, in the ordinary course of business, any goods or services to the person; or requesting the person to make a donation of any kind for any reason; 2.7 Effective Cause means the main reason for the Tenant entering into this Lease; 2.8 Effective Date means the date of acceptance of this Lease by the last Party accepting; 2.9 Fair Wear and Tear means any decline which results from ordinary use and exposure over time, including breakage or malfunction due to age or deteriorated condition, but not where such decline results from negligence, carelessness, accidents, or abuse by the Tenant or the Tenant’s visitors; 2.10 Initial Period means the term of this Lease, excluding any renewal periods; 2.11 Landlord means the Party referred to in item 1.1.2 of the schedule; 2.12 the/this Lease means this agreement together with all its annexures and schedules, as amended from time to time; 2.13 Material Breach means any breach of this Lease which:2.13.1 this Lease defines as a Material Breach; 2.13.2 has or is likely to have a serious financial or legal impact on either Party to this Lease; 2.13.3 has or is likely to have a serious impact on the ability of either Party to this Lease to enjoy its rights under this Lease; 2.13.4 is not remedied by the Party who is in breach within 20 Business Days of being asked to do so by the other Party; or 2.13.5 happens more than once in any 3 Month period. 2.14 Month means a calendar month, and more specifically, in reference to a number of months from a specific date, a month commencing on that date or the same date of any subsequent month; 2.15 Parties means the Tenant(s) and the Landlord(s) and Party means either one of them, as the context may indicate; 2.16 PPA means the Property Practitioners Act 22 of 2019, together with all of its regulations and schedules, as amended from time to time; 2.17 PPRA means the Property Practitioners Regulatory Authority, as established in terms of the PPA; 2.18 Premises means the premises referred to in item 1.1.8 of the schedule; 2.19 Rental means the monthly rental payable by the Tenant to the Landlord for the rental of the Premises; 2.20 Rental Housing Act means the Rental Housing Act 50 of 1999, together with all of its regulations and schedules, as amended from time to time; 2.21 Rules means any applicable Body Corporate and/or house rules; 2.22 Smoking means the lighting of any tobacco products, including but not limited to cigarettes and cigars, as well as the use of any smoking devices, including electronic cigarettes and Smoke shall have the corresponding meaning; 2.23 Specific Performance means the fulfilment of either Party’s obligations in terms of this Lease; 2.24 Tenant means the Party referred to in item 1.1.5 of the schedule; 2.25 Termination Date means the date of termination of this lease for any reason whatsoever; and 2.26 Vehicles means a mobile machine that transports both people or cargo. This definition includes, but is not limited to wagons, bicycles, motor vehicles, watercraft and trailers. 3 INTERPRETATION 3.1 Any reference to one gender includes the other gender. 3.2 Any reference to the singular includes the plural and vice versa. 3.3 Any reference to a natural person includes an artificial or juristic person. 3.4 No provision of this Lease is intended to contravene or limit any applicable provisions of the CPA or the Rental Housing Act. 4 LEASE The Landlord leases the Premises to the Tenant, and the Tenant hires the Premises from the Landlord, in terms of this Lease. 5 DURATION OF INITIAL PERIOD 5.1 For a Lease with a duration of less than 24 Months this Lease will endure for an Initial Period as stated in item 1.7.1 of the schedule and will start on the date referred in 1.7.2 of the schedule and end on the date referred in 1.7.3 in the schedule. 5.2 For a Lease with a duration of more than 24 Months: 5.2.1 This Lease will endure for an Initial Period as stated in item 1.7.1 of the schedule and will start on the date referred in 1.7.2 of the schedule and end on the date referred in 1.7.3 in the schedule; 5.2.2 The Tenant will have the financial benefit of the items referred to in 1.7.4 of the schedule. 5.3 The Tenant specifically acknowledges and agrees that, should s/he not be able to take occupation of the Premises on or before the date specified in 1.7.2 of the schedule as a result of: 5.3.1 any circumstance that is beyond the control of the Landlord; or 5.3.2 any circumstance that arises, which is not as a direct result of any negligent act or omission by the Landlord, then and in such event the Landlord shall not be liable for any damages suffered by the Tenant and the Tenant shall have no claim whatsoever against the Landlord. 6 AUTOMATIC CONTINUATION OF THIS LEASE 6.1 Upon termination of the Initial Period, this Lease will automatically continue until terminated by either Party on the expiration of days'weeks'months' notice by one Party to the other, subject to the provisions of clause 7, unless: 6.1.1 either Party expressly advises the other prior to the termination of the Initial Period that it does not want this Lease to continue after the Initial Period has terminated; or 6.1.2 the Parties agree to extend the Lease for a further fixed – term period. In this regard: 6.1.2.1 should the Parties agree to renew or extend the Lease and not to alter any other terms of the Lease, then the Parties will enter into an addendum specifying the further fixed-term period applicable, which addendum will form part of the Lease; 6.1.2.2 should the Parties, by agreement, seek to alter any other terms of the Lease other than extending the fixed-term period of the Lease, then the Lease will be deemed to have terminated on expiry of the Initial Period and the Parties will conclude a new lease agreement. 6.2 Should this Lease continue on the basis contemplated in clause 6.1, the provisions of Section 14 of the CPA will no longer apply to this Lease. 7 NOTIFICATION OF END OF INITIAL PERIOD 7.1 In order to allow the Tenant to decide whether to continue with this Lease upon expiry of the Initial Period, the Landlord shall notify the Tenant in writing between 40 and 80 Business Days prior to the expiry of the Initial Period of: 7.1.1 the date of termination of the Initial Period; 7.1.2 any material changes that will apply if this Lease is automatically continued on the basis contemplated in clause 6.1 after the termination of the Initial Period; and 7.1.3 the fact that this Lease will automatically continue on the basis contemplated in clause 6.1 upon expiry of the Initial Period, unless the Tenant expressly stipulates by no later than 20 Business Days prior to the date upon which the Initial Period is due to terminate that the Tenant wishes for the Lease to terminate on the expiry of the Initial Period, or that the Tenant wants to extend the Lease for a further fixed-term period, in which case the provisions of clause 6.1 above will apply. 7.2 Should the Tenant give the Landlord notification of the Tenant’s desire to extend the Lease for a further fixed term period, and the Landlord agree to such extension, then the Parties must effect an addendum or a new lease agreement (as the case may be) by no later than 10 Business Days prior to the date upon which the Initial Period is due to terminate. Should the Parties subsequently fail to agree on the terms of the addendum or the new lease agreement (as the case may be), then the Lease shall be deemed to have terminated upon expiry of the Initial Period and the Tenant shall be obliged to vacate the Premises. 8 USE OF THE PREMISES The Tenant will only use the Premises as a place of residence, and may not use the Premises for the purpose of conducting any business without first obtaining the consent of the Landlord, in writing. 9 HOUSE AND BODY CORPORATE RULES 9.1 The Tenant undertakes to read and familiarise her/himself with any Rules. It is specifically recorded that the Rules are an essential part of this Lease and that any breach of the Rules constitutes a Material Breach of this Lease. Any penalties and/or losses which the Landlord may be liable for as a result of the Tenant breaching the Rules may be deducted from the Deposit. A copy of the Rules (if applicable) must be furnished by the Landlord to the Tenant on the Effective Date. 9.2 It is specifically recorded that should there be any discrepancy between the abovementioned Rules and any municipal bylaws, then the municipal bylaws shall take precedence over any other Rules. 10 MONTHLY RENTAL 10.1 The Rental payable by the Tenant to the Landlord / Agent is the amount referred to in item 1.2.1 of the schedule. 10.2 The Landlord’s nominated bank details are set out in item 1.3.2 of the schedule. 10.3 The Tenant must: 10.3.1 ensure that the Rental clears the Landlord’s nominated bank account by the 1st day of every Month; 10.3.2 confirm with the Landlord / Agent that payment has been received; 10.3.3 repay the Landlord / Agent for any bank charges resulting from any payment made by the Tenant to the Landlord / Agent. 10.4 The Tenant will be charged interest on any overdue Rental at a rate stated in item 1.6 of the schedule, calculated from the first day of the Month on which such Rental was due until the date of payment of such Rental by the Tenant in full. 10.5 The Rental cannot be reduced by the Tenant, for any reason whatsoever. 10.6 The Rental will increase annually by the percentage referred to in item 1.2.7 of the schedule. 11 CHARGES BY SERVICE PROVIDERS 11.1 The Tenant must repay the Landlord all amounts paid by the Landlord in respect of charges (plus VAT thereon) levied by service providers supplying services to the Premises, including but not limited to: 11.1.1 electricity, including basic service and network charges, meter service charges, common area charges and charges in respect of consumption or estimated consumption; 11.1.2 water, including basic service and network charges, meter service charges, common area charges and charges in respect of consumption or estimated consumption; 11.1.3 alarm system; 11.1.4 DSTV; and 11.1.5 gas, sewerage, refuse removal and all utility charges, other than the levy. 11.2 The Tenant shall pay these charges to the Landlord / Agent, on presentation of invoice, simultaneously with payment of the Rental. 11.3 If the Tenant arranges for any service provider to supply a service to the Premises, the Tenant must pay the service provider directly. The Tenant acknowledges that the Landlord may at any time request a printout of the Tenant’s account with the service provider so as to confirm whether the Tenant is promptly making payments to such service provider. 11.4 If the Tenant does not repay the Landlord any amount which the Landlord pays in terms of clause 11.1 or if the Landlord pays a service provider directly for any amount which is due and owing by the Tenant, the Landlord may, in its discretion, deduct such amount paid by the Landlord from the Deposit or to claim such amount from the Tenant. 11.5 It is recorded that any failure by the Tenant to timeously pay any amount due by it to a service provider or to the Landlord shall constitute a Material Breach of this Lease. 11.6 If the levies, rates and/or taxes in respect of the Premises increase at any time during the subsistence of this Lease, the Landlord may increase the Rental to accommodate for such increase in the levies, rates and/or taxes. 12 DEPOSIT 12.1 This Deposit is the amount referred to in item 1.2.2 of the schedule. 12.2 The Tenant will pay the Deposit on the Effective Date. When this Lease ends, the Landlord may use the Deposit, together with any interest accumulated thereon, to pay all amounts which the Tenant is liable for in terms of this Lease, including but not limited to the reasonable costs of repairing any damage done to the Premises during the Initial Period, the cost of replacing lost keys, any arrear Rental that was not paid by the Tenant during the Initial Period and any other outstanding amounts for which the Tenant is liable under this Lease. 12.3 The Deposit will be placed in an interest-bearing account with a financial institution. After deducting any amounts owed by the Tenant in terms of clause 12.2, the Landlord must pay the remainder of the Deposit to the Tenant, together with any interest accrued thereon at the applicable rate, within 14 days of the restoration Date. 12.4 If the Deposit is given to an Agent and not to the Landlord, the Agent will invest the Deposit in accordance with the provisions of the PPA. 12.5 Any interest earned on the Deposit will be paid out in accordance with the provisions of item 1.2.3 of the schedule as read with the provisions of the PPA. 12.6 It is recorded that for the subsistence of this Lease, the Deposit at all times belongs to the Tenant and may only be utilised by the Landlord or the Agent in accordance with the provisions of clauses 9, 11.4, 12.3 and 13.5 or when the Agent or the Landlord, as the case may be, is instructed to do so by the Tenant. 12.7 If, during the subsistence of the Lease (including the Initial Period, any fixed- term renewal period, or where the Lease continues on the basis contemplated in clause 6.1) there is any increase in the Rental, the Tenant shall be required to supplement the Deposit to ensure that the Deposit is proportionate to the increased Rental. 12.8 It is specifically recorded that the Tenant cannot ask the Landlord to use the Deposit to cover any Rental which the Tenant owes at any time during the subsistence of the Lease. 13 INSPECTION OF THE PREMISES 13.1 The Tenant and the Landlord or the Agent (as the case may be) will inspect the Premises together, before the Tenant takes occupation of the Premises, to determine whether there is any existing damage to or any defects to the Premises. Any damage and/or defect will be recorded in writing, signed by the Landlord or the Agent (as the case may be) and the Tenant and attached as a schedule to this Lease. The Tenant, by way of this inspection, acknowledges that the Premises are fit for beneficial occupation. 13.2 Recording of the defect or damage in writing does not mean that that Landlord has taken responsibility to have the defect or damage remedied. This recording is a mere acknowledgment that that defect or damage exists and that the defect or damage was not caused by the Tenant. 13.3 If the Tenant discovers any damage to or defects at the Premises after the inspection referred to in clause 13.1 above, the Tenant must notify the Landlord, in writing, of such damage or defects within 7 days of the discovery thereof. The Landlord must supply the Tenant with a written acknowledgment confirming that such damage or defects exist and can inspect such damage or defects with reasonable notice. 13.4 Within 3 days prior to the Termination Date, either the Landlord or the Agent (as the case may be) and the Tenant will inspect the Premises together to determine if any damage was caused to the Premises or the furniture (in the event that the Premises contains the Landlord’s furniture) during the subsistence of this Lease (including any renewal periods). If the Tenant fails to attend the inspection, the Landlord may inspect the Premises at any time within 7 days of the Termination Date, without the Tenant, in order to determine whether any damage was caused to the Premises during the subsistence of the Lease. 13.5 The Landlord may: 13.5.1 deduct money from the Deposit to repair any damage caused to the Premises; and 13.5.2 charge the Tenant for any amount over and above the value of the Deposit, if the cost of repairing the damage amounts to more than the total amount of the Deposit. 14 MAINTENANCE AND REPAIR WORK 14.1 The Tenant must timeously complete any repair work for which s/he is responsible under this Lease. If the Tenant fails to do so, the Landlord may have such work completed by a third party and may claim any costs incurred in respect of the completion of such work from the Tenant. 14.2 If the Tenant discovers that maintenance or repair work needs to be done which the Tenant is not responsible for in terms of this Lease, the Tenant must inform the Landlord, in writing, as soon as is reasonably possible after s/he learns that such work needs to be done. If the Tenant fails to do so, the Landlord may have such work completed by a third party and may claim any costs incurred in respect of the completion of any such work from the Tenant. 14.3 Should the Agent be contacted to attend to, or arrange a contractor or service provider to attend to the Premises for maintenance and/or repair work, the Landlord or Tenant (depending on the responsibility as set out in this clause) shall pay the Agent a surcharge amount as set out in item 1.9.3 for attending thereto. 15 REASONABLE ACCESS TO THE PREMISES BY THE LANDLORD 15.1 The Landlord, the Agent, its agents and/or contractors may require access to the Premises from time to time in order to inspect the Premises or to make repairs, alterations, additions, modifications or improvements to the Premises. 15.2 In this regard, the Tenant agrees to give the Landlord, the Agent, its agents and/or contractors access to the Premises for the purposes referred to in clause 15.1, provided that the Landlord must give the Tenant reasonable notice of its need for such access. 15.3 In the event that emergency work needs to be done at the Premises, the Tenant shall give the Landlord, the Agent, its agents and/or contractors immediate access to the Premises. 16 GENERAL OBLIGATIONS OF THE TENANT 16.1 The Tenant must: 16.1.1 at her/his own cost look after the Premises (including any garden, pool, equipment and/or gates), and ensure that the Premises are kept clean and in good order and condition; 16.1.2 maintain all keys, locks, doors, windows, geysers, water taps and accessories in the Premises; 16.1.3 regularly clean the inside of the Premises, including the carpets, floor coverings and tiles; 16.1.4 maintain, replace and/ or repair all electrical globes, fittings, switches, water-borne taps, stoves, locks, handles, and windows in the Premises; 16.1.5 at her/his own cost have the carpets and the furniture (where applicable) cleaned by a professional carpet cleaning company prior to the Termination Date, to the satisfaction of the Landlord. If the Landlord is unhappy with the state of the carpets and/or the furniture (if applicable), the Landlord may appoint its own professional cleaning company to clean the carpets and/or the furniture (where applicable) and may claim the costs of such cleaning from the Tenant; 16.1.6 repair or replace any broken, damaged or missing items within the Premises belonging to the Landlord, unless these items were recorded as being broken, damaged or missing at the inspection referred to in clause 13.1; 16.1.7 take all reasonable steps to prevent any blockage and/or obstruction of any drains, sewage pipes and/or water pipes in or used in connection with the Premises; 16.1.8 respect the rights of use and enjoyment of neighbours; 16.1.9 comply with all laws and regulations relating to the Premises and, if the Landlord is fined or penalised because the Tenant has breached any law or regulation, the Landlord may recover any costs associated with such breach from the Tenant; 16.1.10 ensure that the Premises are occupied by no more than the number of people stated in item 1.8.1 of the schedule; 16.1.11 make payment of all amounts to which the Landlord is legally entitled as and when such amounts are due and payable; 16.1.12 return the Premises at the end of this Lease in the same order and condition in which it was received, Fair Wear and Tear excepted; 16.1.13 return the keys to the Landlord by latest on the date and at the time stated in item 1.7.5 of the schedule; 16.1.14 ensure that should Smoking be permitted on the Premises in accordance with item 1.1.10 of the schedule, then such Smoking will not cause any damage to the Premises, regardless of whether the person Smoking is the Tenant, any further occupant of the Premises or any visitor of the Tenant; 16.1.15 ensure that, should Smoking not be permitted on the Premises in accordance with item 1.1.10 of the schedule, no person, including but not limited to the Tenant, any further occupant of the Premises or any visitors of the Tenant will Smoke on the Premises; 16.1.16 ensure that, should the Tenant or any other person smoke or have smoked on the Premises, the Tenant shall at its own cost restore the Premises to the pre-smoking condition, making specific mention that the Premises must be professionally cleaned, fumigated and treated for aromas and the like; 16.1.17 ensure that, should the Tenant be permitted to keep pets on the Premises as per item 1.1.11 of the schedule, its pets do not cause any damage to any movable or immovable property located on the Premises, including the garden, if applicable; 16.1.18 ensure that, should no pets be permitted to enter the Premises in accordance with item 1.1.11 of the schedule, no pets, including pets belonging to visitors of the Tenant will enter the Premises at any time and for any reason whatsoever; 16.1.19 ensure that, should pets be kept or have been kept on the Premises, the Tenant shall at its own cost restore the Premises to the pre-pet condition, making specific mention that the Premises must be professionally cleaned, fumigated and treated for aromas and the like; 16.1.20 at all times maintain adequate insurance in respect of all movable property brought onto the Premises, by an insurance company of the Tenant’s choice and make prompt and regular payment of all insurance premiums in respect of such insurance and in this regard the Tenant specifically acknowledges and agrees that the Landlord shall in no way be liable for any damages caused, for any reason to movable property brought onto the Premises by the Tenant; 16.1.21 notify the Landlord of any changes to any locks to the Premises and provide the Landlord with keys to the changed locks within 24 hours of such locks being changed; 16.1.22 ensure that visitors to the Premises park only in the designated visitors parking spaces, provided that same exists and is applicable to the Premises; and 16.1.23 ensure that the Premises remain free from pests and will effect pest control on a regular basis, including fumigation and pest maintenance. 16.2 The Tenant must not: 16.2.1 sublet the Premises or allow any third party to reside in or occupy the Premises without the prior written consent of the Landlord; 16.2.2 allow any refuse to accumulate inside or outside the Premises, save in rubbish bins specifically designated for such refuse; 16.2.3 make any structural changes or additions to the Premises; 16.2.4 stick adhesive picture holders onto or into, or otherwise deface the walls of the Premises; 16.2.5 drive nails or other objects into any portion of the Premises; 16.2.6 paint the interior or exterior of the Premises without first obtaining the prior written consent of the Landlord; 16.2.7 interfere with the electrical, plumbing or gas system in the Premises, unless the Tenant is doing maintenance which is permitted in terms of this Lease; 16.2.8 use any gadgets or tools or keep any liquids which may explode and cause the insurance policy of the Landlord to be questioned by the Landlord’s insurers; 16.2.9 hang or place any signs, notices or advertisements anywhere inside or outside the Premises without the prior written consent of the Landlord; 16.2.10 remove any of the Tenant’s furniture or other movable property during the subsistence of this Lease, as legally such property can be sold by the Sheriff of the Court in the event that the Tenant does not pay her/his Rental in accordance with the provisions of this Lease; or 16.2.11 make any improvements to the Premises without the prior written consent of the Landlord (which consent shall not be unreasonably withheld) and in this regard, the Tenant specifically acknowledges and agrees that upon termination of the Initial Period (or any subsequent period) any improvements made by the Tenant shall be deemed to be the property of the Landlord, unless otherwise agreed to in writing between the Parties. 17 VISITORS OF THE TENANT The Tenant must use her/his best endeavours to ensure her/his visitors at all times comply with the provisions of this Lease and the Rules, including, but not limited to: 17.1 bringing to the attention of such visitors the relevant provisions of this Lease and/or the Rules; 17.2 requesting any person who is in breach of the provisions of this Lease and/or the Rules to immediately remedy such breach; and 17.3 refusing to allow persons who have previously breached this Lease and/or the Rules access to the Premises if they are likely to commit another breach. 18 JOINT AND SEVERAL LIABILITY OF THE TENANT In the event that the Tenant consists of more than one party, each of the parties comprising the Tenant shall be liable to the Landlord jointly and severally for the performance by the Tenant of its obligations in terms of the Lease. 19 LIABILITY OF THE PARTIES 19.1 The Parties cannot sue each other or the Agent for any loss, damage or injury which they suffer unless: 19.1.1 the Party being sued was grossly negligent; or 19.1.2 the Party being sued has breached the provisions of the CPA and/or the Rental Housing Act. 19.2 In the event of a burglary to the Premises: 19.2.1 Any damage to the Premises itself, caused by the illegal access of the Premises by persons other that the Tenant, shall be for the account of the Landlord or the Landlord’s insurance company. The Landlord shall ensure that the damage is rectified within a reasonable time thereafter. 19.2.2 Any damage suffered as a result of theft of the Tenant’s property shall be for the account of the Tenant. The Landlord is not responsible for damages suffered by the Tenant as a result of the theft. 20 CANCELLATION OF THIS LEASE BY THE TENANT BEFORE THE EXPIRY OF THE INITIAL PERIOD 20.1 If the Tenant chooses to cancel this Lease prior to the expiry of the Initial Period for a reason other than a Material Breach of this Lease by the Landlord, or the Tenant is transferred out of the country for occupational or diplomatic reasons, thereby causing this Lease to terminate prior to the expiry of the Initial Period, then the following will apply: 20.1.1 the Tenant must give the Landlord at least 20 Business Days’ written notice of such cancellation; and 20.1.2 the Landlord may recover any loss suffered by the Landlord as a result of such early cancellation of the Lease by charging the Tenant a reasonable cancellation penalty, which will be the equivalent of not less than the amount stated in item 1.9.1 of the schedule. 20.2 In order to calculate a reasonable cancellation penalty, regard may be had to the following, without limitation: 20.2.1 the amount of time left until the Initial Period is due to terminate; and 20.2.2 whether the Landlord is likely to find another tenant to replace the Tenant within a reasonable time; and 20.2.3 whether the Tenant agrees this is a fair and reasonable cancellation penalty. 20.3 If the Landlord or the Agent (as the case may be), by acting reasonably and diligently, is able to enter into a new lease agreement during the 20 Business Day notice period, and the new lease agreement is for the same duration or a longer period than the remaining period of this Lease, then the Tenant shall only be liable for the reasonable advertising costs incurred by the Landlord in advertising the Premises and for any Brokerage due to the Agent. The advertising costs and Brokerage charged under this clause cannot be more than the reasonable cancellation penalty referred to in 1.9.1 of the schedule. 21 CANCELLATION OF THIS LEASE BY THE LANDLORD BEFORE THE EXPIRY OF THE INITIAL PERIOD 21.1 The Landlord may in her/his sole and absolute discretion cancel this Lease on 1 calendar months’ written notice in the following circumstances: 21.1.1 the Landlord intends to move into the Premises; or 21.1.2 the Landlord intends to sell the Premises. 21.2 The Landlord may cancel this Lease on 7 days’ notice to the Tenant in the event that the Tenant remains in continuous breach of this Lease for a period of 3 months and fails to remedy such breach, despite being notified of such breach, in writing, on 3 or more occasions by the Landlord. 21.3 The Landlord may cancel this Lease with immediate effect and demand that the Tenant vacate the Premises immediately but in any event within a period of no more than 24 hours in the event that the Landlord, the Agent or the Body Corporate become aware of the fact that the Tenant is conducting any form of criminal or illegal activity or has contravened any law or by-law whatsoever. 21.4 In the case of clause 21.3 above, the Landlord shall not be obliged to prove the criminal or illegal activity in question, but shall be required to report such activity to the South African Police Service or other applicable body, which reporting may be done anonymously. There shall be no obligation on the Landlord to prove such reporting to the Tenant or any third party. 22 BREACH OF THIS LEASE BY THE TENANT 22.1 In the event of the Tenant not paying the Rental or any other monies due in terms of this Lease on the date upon which such monies are due and payable, or committing any other breach in terms of this Lease then: 22.1.1 should the provisions of Section 14 of the CPA apply to this Lease and the Tenant remain in breach of any of the terms of this Lease for a period of 20 Business Days after despatch of a written notice calling upon the Tenant to remedy such breach; or 22.1.2 should the Lease continue on a Month – to – Month basis in accordance with the provisions of clause 6.1 and the provisions of Section 14 of the CPA accordingly not apply to this Lease and the Tenant remain in breach of any of the terms of this Lease for a period of 7 calendar days after despatch of a written notice calling upon the Tenant to remedy such breach,the Landlord may in her/his sole discretion and without prejudice to any other rights that s/he may have in law to either claim specific performance in terms of this Lease or to cancel this Lease forthwith and without further notice claim all arrear Rental and/or any other damages from the Tenant. 22.2 Should this Lease be cancelled by the Landlord for any reason whatsoever, the Tenant and all other persons occupying the Premises through and/or under the Tenant shall immediately vacate the Premises and allow the Landlord to take occupation thereof. 22.3 In the event of the Landlord cancelling this Lease, and in the event of the Tenant disputing the right of the Landlord to cancel and remaining in occupation of the Premises, the Tenant shall, pending a decision in such dispute, continue to pay an amount equivalent to the Rental provided for in this Lease, together with all other payments herein provided, on the date that such payments are due and into the bank account provided for in this Lease. In such event, the Landlord may accept and recover such payments, either before or after legal proceedings have been instituted, and the acceptance thereof shall be without prejudice to and shall not in any way whatsoever affect the Landlord’s claim of cancellation then in dispute. Should the dispute be determined in favour of the Landlord, the payments made and received in terms of this paragraph shall be deemed to be amounts paid by the Tenant on account of the damages suffered by the Landlord by reason of the cancellation of the Lease and/or the unlawful holding over by the Tenant. 23 BREACH OF THIS LEASE BY THE LANDLORD 23.1 If the Landlord commits a Material Breach of this Lease, the Tenant may apply to a Court: 23.1.1 for the recovery of any damages suffered by the Tenant as a result of such Material Breach; and 23.1.2 for specific performance by the Landlord of any obligation under this Lease. 23.2 The Tenant may also cancel this Lease, without penalty, if the Landlord does not remedy the Material Breach within 20 Business Days of notification being sent to the Landlord instructing the Landlord to do so. 24 ACKNOWLEDGMENT BY THE TENANT The Tenant confirms that: 24.1 s/he has read and understands the provisions of this Lease; 24.2 all necessary clauses have been explained to her/him by the Landlord and/or the Agent; 24.3 s/he has been advised of all her/his rights in terms of this Lease and all relevant sections of the CPA; and 24.4 s/he enters into this Lease, freely and voluntarily. 25 COSTS 25.1 The Tenant shall pay on demand to the Landlord all legal costs on the scale as between attorney and own client incurred by the Landlord in respect of any legal steps taken in terms of this Lease. 25.2 The Tenant or Landlord must also pay any reasonable charges that the innocent Party incurs due to late payments by the other Party. 26 LETTERS AND NOTICES 26.1 Any letter or notice given in terms of this Lease shall be in writing and shall: 26.1.1 if delivered by hand be deemed to have been duly received by the addressee on the date of delivery; 26.1.2 if posted by prepaid registered post be deemed to have been received by the addressee on the 5th Business Day following the date of such posting; and 26.1.3 if transmitted by facsimile or email be deemed to have been received by the addressee 1 calendar day after dispatch. 26.2 For purposes of the above clauses, the contact details are: 26.2.1 the Landlord, as referred to in item 1.4 of the schedule; and 26.2.2 the Tenant, as referred to in item 1.5 of the schedule. 26.3 Notwithstanding anything to the contrary contained herein, a written notice of communication actually received by a Party shall be an adequate written notice or communication to it notwithstanding that it was not sent to or delivered to its chosen domicilium citandi et executandi. 26.4 The addresses given by the Parties in the schedule shall constitute the Parties domicilium citandi et executandi for any and all purposes stipulated under this Lease and the receipt of any documentation and the institution of any legal proceedings. 27 JURISDICTION OF THE MAGISTRATES’ COURT 27.1 Not limiting the jurisdiction that any other court may have, the Parties consent in terms of section 45 of the Magistrates’ Courts Act, 32 of 1944, (or any similar section of an act replacing such act) to the jurisdiction of the Magistrates' Court for the purpose of any proceedings in terms of or incidental to this Lease, notwithstanding that the amount claimed or the value of the matter in dispute may exceed such jurisdiction. 27.2 The Parties specifically agree that the Magistrates’ Court closest to where the Premises are situated is the court that shall be used to resolve all disputes under this Lease, unless either Party refers the dispute to arbitration. 28 TENANTS WHO ARE FOREIGNERS 28.1 If the Tenant is not a citizen or permanent resident of South Africa, s/he confirms that s/he: 28.1.1 is not in the country in contravention of the Immigration Act 13 of 2002; and 28.1.2 s/he has permission to be in the country for the duration of this Lease (including any renewal periods). 28.2 It is the Tenant’s duty alone to comply with the provisions of clause 28.1 and the Landlord shall not be liable to the Tenant for any loss or damage sustained or incurred by the Tenant as a result of any breach of the undertakings contained in this clause. 29 PARTIES MARRIED IN COMMUNITY OF PROPERTY If any person signing this Lease is married in community of property, they confirm that their spouse has consented to them signing this Lease. 30 CREDIT INFORMATION 30.1 The Tenant consents to and authorises the Landlord, the Agent to: 30.1.1 contact, request and obtain information at any time and from any credit provider (or potential credit provider) or registered credit bureau in order to assess the behaviour, profile, payment patterns, indebtedness, whereabouts and creditworthiness of the Tenant; and 30.1.2 provide information about the behaviour, profile, payment patterns, indebtedness, whereabouts, and creditworthiness of the Tenant to any registered credit bureau or to any credit provider (or potential credit provider) seeking a trade reference regarding the Tenant’s dealings with the Landlord. 31 ENTIRE AGREEMENT IN WRITING 31.1 No changes to this Lease will be valid unless reduced to writing and agreed by both Parties. 31.2 The Landlord and the Tenant agree that this Lease contains everything agreed to between them. 32 LANDLORD’S HYPOTHEC All items brought onto the Premises by the Tenant will serve as security for the Tenant’s compliance with her/his obligations under this Lease. The Tenant may not give up her/his rights or possession of these items or remove them from the Premises. 33 RELAXATIONS OR INDULGENCES If either Party for any reason chooses not to act against the other in the event of a breach of any provision of this Lease, such election not to act shall not constitute a waiver of any of the rights of such Party and such Party may still demand compliance with the provisions of this Lease at a later stage. 34 EFFECT OF INVALIDITY OF PROVISIONS If any provision of this Lease becomes or is found to be unlawful, invalid or unenforceable, the rest of this Lease will not be affected and shall be severable from the provision in question (to the extent that it is invalid, unenforceable or unlawful) and the remaining provisions of this Lease shall remain in full force and effect. 35 MANAGING AGENT 35.1 The Tenant and the Landlord confirm that the Tenant was introduced to the Premises by the Agent referred to in item 1.1.1 of the schedule, and that the Agent was the only Effective Cause of the conclusion of this Lease. 35.2 The Brokerage referred to in item 1.9.4 is accordingly due to the Agent on this Lease and any extension or renewal thereof. 35.3 The Agent is hereby authorised to deduct all Brokerage referred to in item 1.9.4 from the monthly rental paid to the Landlord. The Brokerage is not refundable. Should the Tenant fail to pay the Rental due to the Landlord, the Agent may claim the Brokerage directly from the Landlord. 36 MARKETING THE PREMISES TO PROSPECTIVE TENANTS OR PURCHASERS 36.1 The Landlord may display "TO LET" signs at the Premises for 3 Months prior to the Termination Date, and to display "FOR SALE" signs at the Premises at any time during the subsistence of this Lease. 36.2 During the subsistence of this Lease, the Tenant must allow the Landlord (or any representative appointed by the Landlord) reasonable access to the Premises for the purposes of showing the Premises to prospective tenants or purchasers, which access shall include access to the Premises on at least 2 Sundays per Month between the hours of 12:00 and 17:00, if required. The Landlord or its representative shall contact the Tenant to arrange for such access. Such access shall include the right to access the Premises to take photographs of the Premises for the purposes of marketing the Premises to prospective Tenants or Purchasers. 37 POTENTIAL SALE If the Tenant signs a sale agreement with the Landlord at any time during the Initial Period of Lease, any renewal of the Lease or within 12 months after the Lease has come to an end, then the Agent shall be deemed to have been the reason that the sale took place and the Landlord shall pay Brokerage equal to the percentage of the selling price as set out in item 1.9.2 to the Agent by not later than 10 Business Days of receipt of the purchase consideration. 38 SPECIAL CONDITIONS 38.1 Despite anything to the contrary in this lease agreement, the landlord is responsible for structural maintenance including walls, roof, windows ceilings, and doors, electrical and plumbing fittings and pipes, stove and geyser and automatic gate and garage motors, as also gutters and sewerage system unless same is damaged or not properly maintained by the tenant as per clauses 14 and 16. 38.2 All renewals of this lease will be done at a renewal brokerage fee of % + VAT of total lease value. Management fee will remain at % + vat monthly.
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