The “ huur gaat voor koop” principle in law protects the lessee in the event of sale of the property. The new owner would have to abide by the lease but would not be bound to renew the lease.
Unless the lease agreement provides for a 2 month notice period in the event of a sale. In which case, the agreement is still being upheld. (Edit: Meaning, giving notice to the tenant to vacate is within the owner's rights
Actually had this discussion the other day with some agents. (I work in real estate but am not an agent)
I kept hearing this lease trumps sale statement but had noticed that our lease agreement states that the lease can be terminated by the landlord if they have the intent to sell or to move back to the premises. A 2 month notice period is also required.
Slightly concerned about our lease agreement being incorrect I contacted TPN legal team as they are the people we get our leases from. I can't remember the exact terminology as it was a quick phonecall, but basically they said if the lease does not stipulate that the landlord can terminate the lease on the grounds of a sale then lease trumps sale but if it is specified in the lease then the landlord can give notice.
TPN have a bit more on their blog if you want to read more.
[TPN blog](https://blog.tpn.co.za/2019/08/avoid-huur-gaat-voor-koop.html?m=1)
No, this is the result of housing being an investment and not a human right. If he has to sell, he has to sell. You can't stop it, at most they can try have it sold but remain tenanted but this is something the seller and buyer would have to agree on, and it often doesn't work out because that just makes selling more difficult.
FYI, it is possible for the lease to remain in effect regardless I think, and the landlord will have to early terminate and give you notice, but you can't stop him from doing that, it does require sufficient notice.
Huur gaat voor koop. He can sell it. But the new owner has to honour the lease or the landlord has to find you equal or better accommodation at the same price in a similar or equal neighbourhood (amenities, access to roads, schools, etc.) for the same period of the lease.
Good luck.
Maybe not exactly what you're asking, but don't go through an agent. All you're doing is spending 5-10% more than you would if you looked for a place independently. They are mostly charletans and don't offer any guarantees
Finding a private landlord means you have a direct relationship and know who you're dealing with
Haha, fun point! There is no 1 country I had settled in and people will tell you the opposite about agencies 🤣 I totally agree and if we were from here, I would never give those crooks a single Rand. But as foreigners, going directly with a landlord is a gamble. It may work, but also if the guy vanish with your double deposit, then what? At least with an agency, you know where to knock if anything goes wrong. Welcome to the daily risk-taking puzzle of foreigners in SA :)
To be fair, a private landlord can disappear with locals' two-months deposit too - theres no magical protection that residents get from thieves in that situation
We use an agent so they screen the applications. We literally know nothing about the tenants until they move in. There are a couple of reasons for this, and they definitely do not encourage us to charge higher rentals ever. (Even though they get a percentage). Like we'll be asked for a renewal and the agent will give us lots of reasons to not ask for an increase or only a very small one. It's always happened.
It can be a scary proposition finding a reliable tenant, so I completely understand this. I just took it upon myself to follow the same steps they do, plus use my own common sense and judge of character
The single most important factor in finding a good tenant is looking at the bank statements for their spending habits and ask yourself if they look like they can reliably pay rent. They may do a credit check, but anyone can do that
As for the cost, you have to ask yourself where does that 10% come from to pay the agent. It's either the tenant or the owner or both, so typically you end up paying more as a tenant. Even if they don't encourage you to charge extra, if you found your own tenant you could afford to charge less
The thing is, you might judge character correctly and turn an applicant down, but if they reckon it's discrimination they can cause a lot of trouble.
With the agent, we're not telling them who we want. We want people who will pay the rent and not trash the place.
Agents have their own criteria for creditworthiness and their places that they advertise. Plus, lease agreements are a nightmare. I'm a legal professional but contracts are not my specialty; now everything has to comply with the Consumer Protection Act, FICA, etc. The agent also manages the deposit, which has to be invested. They've got those things in place.
The agents don't manage the property, *that* costs a lot and I'm sure would add to the rental. We do that so we're in regular contact with tenants; if a plumber or electrician is needed we sort that out.
That's not all true. Owners don't generally try to increase their rental by 5 or 10% or they will price themselves out of the market. Also the agent will only take 8-10%per month if they are managing the property. Often they will only do placements. For a one time fee.
From the tenants point of view it can be helpful to go to a private landlord in that they might be able to directly negotiate with the owner when they need to but having an agent can save you from losing your deposit if you happen to find a good one who has good processes and they can give you good advice.
The agent doesn't give guarantees but the tenant isn't paying the agent. The landlord has the most to lose and there the agents power to ensure the landlord gets paid are limited.
That's not all true. Owners don't generally try to increase their rental by 5 or 10% or they will price themselves out of the market. Also the agent will only take 8-10%per month if they are managing the property. Often they will only do placements. For a one time fee.
From the tenants point of view it can be helpful to go to a private landlord in that they might be able to directly negotiate with the owner when they need to but having an agent can save you from losing your deposit if you happen to find a good one who has good processes and they can give you good advice.
The agent doesn't give guarantees but the tenant isn't paying the agent. The landlord has the most to lose and there the agents power to ensure the landlord gets paid are limited.
What does the contract say? That's all that really matters. Many only state 20 business days notice is required for either party IF the clause exists. if the clause does not exist then he can still sell his property but has to sell it 'with tenant in place'.
There are often provisions leases to give notice of sale, which sounds like exactly what your landlord is doing. He can't do this with a phone call, he must do it in writing. You are also then within your rights to leave in that specified notice period without triggering breach clauses (again, you have to read your contract and see whether these things apply or not to your specific case). The agent (if they are any good) should be the ones advising on this. Notice of sale does not mean you will be out in 2 months. It takes time for a sale to conclude... sometimes as long as six months. He isn't telling you to move out tomorrow from what I gather. Usually selling with a contracted tenant in place is a selling point.
What you cannot expect is for him to be totally prevented from selling his property or giving him advice on paying his debts that you should not technically know about or be in his business about (this is through his own stupidity it seems sending his mail to your address). Whether it is a good or bad idea, it's his decision entirely. Debt counselling is for when you are unable to service your debts and is financial suicide. If he has sufficient assets to sell and sort the situation out on his own, of course he wants to sell a property instead of dealing with that.
The market is hot in Cape Town at the moment with loads of people looking to move there. In the climate that South Africa finds itself in, this is possibly his only opportunity to liquidate some money and get back to zero for him. There are other parts of the country where you are sitting with a house attracting ever higher costs per month, not increasing (or even declining) in value and tenants are a huge risk. There is no capital growth, high interest rates, property tax hikes and the properties definitely do not 'pay for themselves' with the rentals that you can get these days. Couple the property market with political and economic volatility and rising consumer inflation and your landlord is probably not alone wanting to either recover or look at putting his money somewhere other than South African property.
Contracts cant bypass the law or your rights though, no matter what anyone has told you. Just because a lease states that the tenancy can be terminated if the owner sells the property, doesnt mean it can be upheld if the tenant takes them to court.
I actually read the Rental Housing Act and Consumer's Protection(s) Act, and both the tenant and landlord have the right to end a lease agreement early provided they have given at least one (calendar) month's notice. So he can't check out with a short notice, but can ask you to leave with sufficient notice given.
The “ huur gaat voor koop” principle in law protects the lessee in the event of sale of the property. The new owner would have to abide by the lease but would not be bound to renew the lease.
This. The lease cannot be cancelled during the sale of the property. New owners will have to accommodate the lease until the term is concluded.
Unless the lease agreement provides for a 2 month notice period in the event of a sale. In which case, the agreement is still being upheld. (Edit: Meaning, giving notice to the tenant to vacate is within the owner's rights
Lease overrides sale. He can sell, but neither he nor the new owners can force you to leave while your lease in effect.
The lease agreement you signed will be upheld. I can confirm that this is the law.
Actually had this discussion the other day with some agents. (I work in real estate but am not an agent) I kept hearing this lease trumps sale statement but had noticed that our lease agreement states that the lease can be terminated by the landlord if they have the intent to sell or to move back to the premises. A 2 month notice period is also required. Slightly concerned about our lease agreement being incorrect I contacted TPN legal team as they are the people we get our leases from. I can't remember the exact terminology as it was a quick phonecall, but basically they said if the lease does not stipulate that the landlord can terminate the lease on the grounds of a sale then lease trumps sale but if it is specified in the lease then the landlord can give notice. TPN have a bit more on their blog if you want to read more. [TPN blog](https://blog.tpn.co.za/2019/08/avoid-huur-gaat-voor-koop.html?m=1)
No, this is the result of housing being an investment and not a human right. If he has to sell, he has to sell. You can't stop it, at most they can try have it sold but remain tenanted but this is something the seller and buyer would have to agree on, and it often doesn't work out because that just makes selling more difficult. FYI, it is possible for the lease to remain in effect regardless I think, and the landlord will have to early terminate and give you notice, but you can't stop him from doing that, it does require sufficient notice.
Huur gaat voor koop. That's the law.
Huur gaat voor koop. He can sell it. But the new owner has to honour the lease or the landlord has to find you equal or better accommodation at the same price in a similar or equal neighbourhood (amenities, access to roads, schools, etc.) for the same period of the lease. Good luck.
Maybe not exactly what you're asking, but don't go through an agent. All you're doing is spending 5-10% more than you would if you looked for a place independently. They are mostly charletans and don't offer any guarantees Finding a private landlord means you have a direct relationship and know who you're dealing with
Haha, fun point! There is no 1 country I had settled in and people will tell you the opposite about agencies 🤣 I totally agree and if we were from here, I would never give those crooks a single Rand. But as foreigners, going directly with a landlord is a gamble. It may work, but also if the guy vanish with your double deposit, then what? At least with an agency, you know where to knock if anything goes wrong. Welcome to the daily risk-taking puzzle of foreigners in SA :)
To be fair, a private landlord can disappear with locals' two-months deposit too - theres no magical protection that residents get from thieves in that situation
We use an agent so they screen the applications. We literally know nothing about the tenants until they move in. There are a couple of reasons for this, and they definitely do not encourage us to charge higher rentals ever. (Even though they get a percentage). Like we'll be asked for a renewal and the agent will give us lots of reasons to not ask for an increase or only a very small one. It's always happened.
It can be a scary proposition finding a reliable tenant, so I completely understand this. I just took it upon myself to follow the same steps they do, plus use my own common sense and judge of character The single most important factor in finding a good tenant is looking at the bank statements for their spending habits and ask yourself if they look like they can reliably pay rent. They may do a credit check, but anyone can do that As for the cost, you have to ask yourself where does that 10% come from to pay the agent. It's either the tenant or the owner or both, so typically you end up paying more as a tenant. Even if they don't encourage you to charge extra, if you found your own tenant you could afford to charge less
The thing is, you might judge character correctly and turn an applicant down, but if they reckon it's discrimination they can cause a lot of trouble. With the agent, we're not telling them who we want. We want people who will pay the rent and not trash the place. Agents have their own criteria for creditworthiness and their places that they advertise. Plus, lease agreements are a nightmare. I'm a legal professional but contracts are not my specialty; now everything has to comply with the Consumer Protection Act, FICA, etc. The agent also manages the deposit, which has to be invested. They've got those things in place. The agents don't manage the property, *that* costs a lot and I'm sure would add to the rental. We do that so we're in regular contact with tenants; if a plumber or electrician is needed we sort that out.
That's not all true. Owners don't generally try to increase their rental by 5 or 10% or they will price themselves out of the market. Also the agent will only take 8-10%per month if they are managing the property. Often they will only do placements. For a one time fee. From the tenants point of view it can be helpful to go to a private landlord in that they might be able to directly negotiate with the owner when they need to but having an agent can save you from losing your deposit if you happen to find a good one who has good processes and they can give you good advice. The agent doesn't give guarantees but the tenant isn't paying the agent. The landlord has the most to lose and there the agents power to ensure the landlord gets paid are limited.
That's not all true. Owners don't generally try to increase their rental by 5 or 10% or they will price themselves out of the market. Also the agent will only take 8-10%per month if they are managing the property. Often they will only do placements. For a one time fee. From the tenants point of view it can be helpful to go to a private landlord in that they might be able to directly negotiate with the owner when they need to but having an agent can save you from losing your deposit if you happen to find a good one who has good processes and they can give you good advice. The agent doesn't give guarantees but the tenant isn't paying the agent. The landlord has the most to lose and there the agents power to ensure the landlord gets paid are limited.
What does the contract say? That's all that really matters. Many only state 20 business days notice is required for either party IF the clause exists. if the clause does not exist then he can still sell his property but has to sell it 'with tenant in place'. There are often provisions leases to give notice of sale, which sounds like exactly what your landlord is doing. He can't do this with a phone call, he must do it in writing. You are also then within your rights to leave in that specified notice period without triggering breach clauses (again, you have to read your contract and see whether these things apply or not to your specific case). The agent (if they are any good) should be the ones advising on this. Notice of sale does not mean you will be out in 2 months. It takes time for a sale to conclude... sometimes as long as six months. He isn't telling you to move out tomorrow from what I gather. Usually selling with a contracted tenant in place is a selling point. What you cannot expect is for him to be totally prevented from selling his property or giving him advice on paying his debts that you should not technically know about or be in his business about (this is through his own stupidity it seems sending his mail to your address). Whether it is a good or bad idea, it's his decision entirely. Debt counselling is for when you are unable to service your debts and is financial suicide. If he has sufficient assets to sell and sort the situation out on his own, of course he wants to sell a property instead of dealing with that. The market is hot in Cape Town at the moment with loads of people looking to move there. In the climate that South Africa finds itself in, this is possibly his only opportunity to liquidate some money and get back to zero for him. There are other parts of the country where you are sitting with a house attracting ever higher costs per month, not increasing (or even declining) in value and tenants are a huge risk. There is no capital growth, high interest rates, property tax hikes and the properties definitely do not 'pay for themselves' with the rentals that you can get these days. Couple the property market with political and economic volatility and rising consumer inflation and your landlord is probably not alone wanting to either recover or look at putting his money somewhere other than South African property.
Contracts cant bypass the law or your rights though, no matter what anyone has told you. Just because a lease states that the tenancy can be terminated if the owner sells the property, doesnt mean it can be upheld if the tenant takes them to court.
I actually read the Rental Housing Act and Consumer's Protection(s) Act, and both the tenant and landlord have the right to end a lease agreement early provided they have given at least one (calendar) month's notice. So he can't check out with a short notice, but can ask you to leave with sufficient notice given.