TENANTS IN THE PROPERTY - KNOW THE LAW

If there are tenants living in the property (with or without a written lease), their rights must be carefully checked.

Under South African law, we follow the principle of "Huur gaat voor koop" - which means a lease takes preference over a sale. The tenant has the right to stay in the property even if it is sold.

If the Purchaser wants to move in after buying, it is critical to:

·       Check the lease agreement carefully (or get a summary of its terms)

·       Understand the end date of the lease

·       Check if the tenant has the right to renew

·       Confirm if the Purchaser will be taking over (ceding) the lease

If the lease is to be taken over:

·       The Purchaser must get a copy of the lease before signing the sale agreement

·       The Purchaser must confirm in writing that they accept the lease

If needed, a special addendum must be added to the sale agreement to cover all lease terms clearly