Lease Unit 3.pdf - LAW OF LEASE Unit 3 Duties of the Lessee 3 duties of the lessee toward the lessor 1 Duty to pay rental 2 Duty of proper use and care

Lease Unit 3.pdf - LAW OF LEASE Unit 3 Duties of the Lessee...

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LAW OF LEASE Unit 3: Duties of the Lessee
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3 duties of the lessee toward the lessor 1. Duty to pay rental 2. Duty of proper use and care for the premises/property 3. Duty to restore/return the premises/property
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1. Duty to pay rent The lessee’s primary duty is to pay the rent and a lessor is entitled to being paid in South African currency. The rent is payable upon the end of a period, either monthly or at the end of the lease: the general rule is that rent is payable monthly in arrears but this can be varied (fixed date or monthly in advance). A lessee usually has until midnight/12pm on the due date to make payment. If rent has to be paid at a place of business - must pay rent on a business day during business hours. If due date falls on a Sunday or a public holiday - the lessee will be excused from payment on the due date and is entitled to pay on the first business day thereafter . HOWEVER Lessee will not be excused from payment on a Sunday or a public holiday if rent is due, not at an office or another place of business, but for instance at the private residence of the lessor .
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1. Duty to pay rent It is expected of the lessee to take reasonable steps to ensure timeous payment of the rent. Should the parties not agree upon the place where payment of rent is to be made, it is the responsibility of the lessee to locate the lessor, provided there is an agreed date for payment. But if the date for payment was not agreed upon, then the lessor must locate the lessee and set a date for payment before the lessee can be placed in mora . The risk of the possible unreliability of the method used to transfer the rent payment to the lessor is, in principle, on the lessee. In a periodic lease, the prescription of each rental payment begins to run when that particular payment is due (interest will accrue as determined by the lease).
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Lessees failure to pay rent – remedies? A lessor is entitled to any of the breach of contract remedies where the lessee: (a) defaults on rent payment (arrears); and/or (b) repudiates liability for rent payment. The lessor may uphold the lease contract and claim rent (specific performance); or Claim cancellation of the lease contract (i.e. cancellation clause); or Claim damages where financial loss is suffered. Most important remedy is the TACIT HYPOTHEC :
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Tacit hypothec The tacit hypothec is used to secure the lessor’s claim for arrear rent by hypothec over movables . (clause) All movables on the property let ( invecta et illata/movables ) are subject to the lessor’s tacit hypothec. Movables here includes fruits and crops yielded by the property, whether standing or separated and m oney found on the premises . There is no reported decision that has yet extended the Hypothec beyond arrear rental and insolvency preference matters.
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  • Fall '18
  • landlord, Leasehold estate, Rental agreement, RHA

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