Question if the new owner acquires the property subject to the lease does this

Question if the new owner acquires the property

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3. Question: if the new owner acquires the property subject to the lease , does this mean he is bound by ALL terms of the lease contract ? [Genna – Wae case 1995 (2) SA 926 (A): the court confirmed that BOTH THE NEW OWNER AND THE LESSEE ARE BOUND BY THE LEASE , and that the lessee does not have a right of election to resile therefrom.] The courts have established that on alienation of the property, the new owner steps into the shoes of the original lessor and as a matter of law becomes entitled to the rent and at the same time becomes the lessee’s debtor , while the relation between the lessee and the original lessor comes to an end. 4. TRANSFER OF THE LESSOR’S TITLE: “HUUR GAAT VOOR KOOP” RULE (Continued)
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4. TRANSFER OF THE LESSOR’S TITLE: “HUUR GAAT VOOR KOOP” RULE (Continued) [Spearhead case (2009) 4 All SA 417 (SCA): the court held that a purchaser/potential new owner would be bound if he had knowledge of an option to purchase existing , at the time of the sale, but this was by virtue of the Doctrine of Notice and NOT the application of the “huur gaat voor koop rule”. A new owner is however bound by an option to renew the lease .] A new owner is bound by ALL the clauses of the lease in existence, except those clauses which were intended to bind only/specifically the original owner ( personal nature only the previous owner could possibly fulfil it ). Expropriation as an exception? KNOW THIS An exception to the “huur gaat voor koop rule” = is Expropriation (it is AN ORIGINAL ACQUISITION OF OWNERSHIP title and not derived/obtained from another)(i.e. the new owner is not a successor of the previous owner). Therefore the huur gaat voor koop succession of title from one lessor to another cannot apply. The “HUUR GAAT VOOR KOOP RULE ” applies only to lease contracts. END OF UNIT 4 Expropriation supersedes the HGVK rule
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