 |
 |
|
|
|
|
What are the Lessee’s (tenant’s) rights when a property is sold?Unless a Lease Agreement states otherwise, a Lessor is not prohibited from selling a leased premises to a third party whilst the lease is in force. However, the Lessee is entitled to remain in occupation of the premises for the full duration of their lease. As a general rule, the Lessee must allow the Lessor to put up a ‘To Let’ or ‘For Sale’ board towards the end of a lease. He must also allow prospective Purchaser’s or Lessee’s inspect the property, provided the Lessor acts in a reasonable manner. Is a Lessee entitled to remove improvements which he has made on a property? Improvements installed by a Lessee such as fitted carpets may be removed by the Lessee on termination of a lease unless the Lease Agreement states differently. Damage caused by the removal must be repaired by the Lessee. Standard lease documents usually state that any improvements made to the property by the Lessee during the lease period become the property of the Lessor on termination of the lease. Is a Lessee permitted to Sub-let? A sub-lease is a lease entered into between the Lessee of a property and someone else. A cession of a lease by a Lessee involves the transfer of the Lessee’s rights to a third party who is then entitled the same rights (for instance, to occupy the property). As a general rule this is permitted without the consent of the Lessor, however most standard lease documents prohibit the Lessee from doing this without the consent of the Lessor. Who pays for stamp duties? A lease must be stamped, ie revenue stamps must be affixed to the lease agreement in terms of the Stamp Duty Act 77 of 1968. The amount of the stamp depends on the rental amount payable over the period of the lease. The original document is to be stamped. Stamp duty must also be paid on a copy of the original contract, subject to a prescribed limit. Lessor’s should consult the Stamp Duties Act, their Attorney or the Receiver of Revenue when calculating the amount of the stamp duty payable on a lease.  |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Ownership & Copyright Notice | Home |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
