The Consumer Protection Act (CPA) does NOT apply to all lease agreements (or rental agreements). This is really important to know because the Consumer Protection Act has a big influence on the lease and changes the legal position between the landlord and tenant significantly.
Does the CPA apply to commercial leases?
Commercial leases fall within the ambit of the CPA and refer to an agreement between a landlord and a business setting out terms and conditions governing a property rental. The CPA applies to contracts entered with natural persons and juristic persons with an annual turnover or asset value of less than R2 million.
Does the CPA apply to companies?
This means that a private lease agreement will be covered by the CPA. The CPA does not apply to transactions where the consumer is a company, close corporation or a trust with an annual turnover or net asset value of R2M.
Can you cancel a business lease?
A lease is a legal contract, and your landlord can take you to court if you break it. But depending on the circumstances, your landlord may be prepared to negotiate a compromise.
How is the CPA ( Consumer Protection Act ) applicable to rental agreements?
How Is The CPA (Consumer Protection Act) Applicable To Rental Agreements? The enactment of the Consumer Protection Act No. 68 of 2008 (CPA) introduced some far reaching changes to lease agreements for immovable property.
How is the CPA applicable to commercial property?
No distinction is made between commercial and residential property. The regulations promulgated in terms of the CPA prescribe that fixed-term agreements shall endure for a maximum period of two years. This provision also applies to lease agreements which, therefore, are limited to a two-year duration period.
What does the CPA do for a tenant?
In looking after tenants’ interests, the CPA effectively trumps other legislation, such as the Rental Housing Act, which governs residential letting. Under section two of the CPA, if the provisions of any other law are inconsistent with the Act, the law that provides a tenant with the greater protection must take precedence.
Can a landlord contract out of the CPA?
In other words, Shevelew says, you, as a landlord, cannot contract out of the CPA, even if you and your tenant would like to do so. The penalty for contravening the CPA is a fine of up to R1 million or 10 percent of the landlord’s annual turnover, whichever is greater.
