LAW OF LEASE WHAT IS A LEASE Lease
- Slides: 12
LAW OF LEASE
WHAT IS A LEASE? • Lease is a contract whereby one party (Lessor/Landlord) undertakes to give the other (Lessee/Tenant), the use of a thing, either partially or in full, for a period of time, in return for a certain or acertainable price, which the Lessee undertakes to pay.
REQUIREMENTS (ESSENTIALIA) • Specified property or thing • Use and enjoyment of the property • For a period (temporary) • For a price (rent)
DUTIES OF THE LESSOR • To deliver use & occupation or enjoyment of the property • To deliver the property in a proper condition & to maintain the property • Not to interfere with the Lessee’s use & to protect him against eviction • To compensate the Lessee for additions & improvements • To pay taxes
DUTIES OF THE LESSEE • To pay the rent • To use the property for the purpose for which it was let & to take care of the property • To return the property undamaged
SITUATIONS WHERE LESSOR HAS REMEDY • Tenant does not pay the rent • The tenant misuses the property • The tenant fails to return property at end of lease • The tenant returns the property in a damaged state
SITUATIONS WHERE TENANT HAS REMEDY • If landlord breaches duty to deliver property • If landlord fails to maintain property • If landlord breaches warranty against interference • If property sold during lease • If tenant makes improvements to property
TERMINATION OF THE LEASE • Expiration of the specified period • By notice • By agreement • Cancellation • Supervening impossibility of performance • Merger
THIRD PARTIES • Lessee may sub-lease unless prohibited • May assign rights & duties with consent • May cede rights unless prohibited • May only delegate duties with consent • Huur gaat voor koop
TACIT HYPOTHEC • Landlord automatically acquires a hypothec over all movables (even if belonging to 3 rd party) on premises as soon as tenant in arrear with rent.
RENTAL HOUSING ACT 50 OF 1999 • Applies to all residential leases • No discrimination • Rights of landlords and tenants • Inspection • Deposits • Receipts etc…. • Rental housing tribunal
CONSUMER PROTECTION ACT • Limitation of period of lease to two years • Can cancel on 20 days written notice • Requirement to bring any limitation of risk to tenants attention • Must not be unfair • Plain language etc