This applies when a property is sold with a sitting tenant. The tenant is protected against the rights of third parties that are given later than the tenant’s rights. This is referred to as the ‘huur gaat voor koop’ maxim in South African law.
The purchaser takes over the lease agreement by stepping into the shoes of the seller.
The new owner automatically acquires all the rights and duties of the landlord under the lease and neither the tenant nor the new owner can cancel the lease without following the provisions contained in the lease agreement itself.
If the new owner wishes to terminate the lease agreement, they must give the amount of notice indicated in the original lease with the previous owner. The provisions of the Rental Housing Act and Consumer Protection Act may apply too.
Simon Dippenaar
https://www.sdlaw.co.zaCape Town attorney Simon Dippenaar has a BBusSc LLB degree and Professional Diploma in Legal Practice from the University of Cape Town, and is an admitted attorney of the High Court of South Africa. He is the founder and director of private legal practice, Simon Dippenaar & Associates, with offices in Cape Town and Gauteng representing South African and international clients.
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