The lessor must ensure that the registered commercial lease is not too one-sided. It is a question of compliance, because one party would actually have more rights than the other, which increases its responsibility for the agreement. It is important to note that the principle of conditional subscription is still in place and that a tenant remains bound to a rental agreement at the time of signing. However, a lessor can no longer rely on the above principle alone to execute a lease by court. Moreover, not that before the start of the Consumer Protection Act on April 1, 2011, contract law and the common law addressed the question of when and how a tenant terminated a tenancy agreement. The CPA definitions clearly state that buy-to-let landlords, landlords and investors should be considered suppliers, while tenants are considered consumers within the meaning of the law. The result is that landlords and tenants are subject to the full severity of the CPA. The CPA refers in particular to the behaviour of landlords who rent premises as part of their usual activity, in contrast to “unique” leases and other private situations. However, in the case of real estate rentals, a “consumer” within the meaning of the CPA includes not only those who enter into leases, but also tenants (such as small and medium-sized businesses) who wish to rent commercial space. The exclusion of the lease agreement under the National Credit Act, of course, concerns personal property acquired under a so-called “rental-sale” contract, in which ownership of the purchased furniture is not transferred to the consumer until the end of the lease term. The definition of “rent,” as contained in the CPA, also provides a better understanding of what is meant by “leasing.” The rent is defined as: In addition, this section provides for the termination of all leases with only 20 days of termination by a tenant. As a result, infringement clauses must now be developed in leases to allow a tenant 20 days to remedy a breach of the tenancy agreement.
In addition, this section provides that a tenant can terminate a tenancy agreement by reserving only 20 days for the landlord. Regardless of the above, a tenant is liable by the lessor for all amounts liable up to the termination date. The landlord may also impose an appropriate cancellation fine on the tenant. There are certainties. All natural people are consumers, regardless of their net inventory value. Legal entities (such as businesses) are subject to normal thresholds and it is very easy to determine who is a consumer and who is not. Any corporation whose assets or annual turnover at the time of the closing of the transaction (lease agreement) is less than R2 million is a consumer. Section 22 – The obligation to understand the terms of the lessor is a well-known principle of common law in contract law, which implies that an agreement, when reduced to the letter and signed by the parties, is bound by its terms.