DEEMING PROVISION IN S 5(5) OF THE RENTAL HOUSING ACT WHEN A LEASE EXPIRES AND THE TENANT STAYS ON: CAN IT BE REBUTTED?
Sharma v Hirschowitz and Others (A3064/18) [2019] ZAGPJHC 434 (4 November 2019)
In order to assist in the resolution of disputes, the Rental Housing Act has certain deemed provisions, impliedly forming part of the agreement between the landlord and tenant. This judgment dealt with the provision stating that if, on the expiration of the lease, the tenant remains in the premises with the express or tacit consent of the landlord, the parties are deemed to have entered into a periodic lease generally on the same terms as before, unless there was a written lease agreement with terms to the contrary. Can a tenant argue that an oral rental increase in the periodic lease period was therefore invalid?
The Judgment can be viewed here:
The Judgment
Summary of the Judgment
AN AGREEMENT TO AGREE ON THE RENTAL AMOUNT IF THE LEASE IS TO BE RENEWED: VERY PROBLEMATIC
Shepherd Real Estate Investments (Pty) Ltd v Roux Le Roux Motors CC (1318/2018) [2019] ZASCA 178 (2 December 2019)
The reason why an agreement to negotiate, like an agreement to agree, is generally unenforceable is simply because it lacks the necessary certainty. It can be salvaged in certain circumstances where there is an agreed method how to resolve a deadlock that may arise. This judgment is a case in point.
The Judgment can be viewed here:
