Consumer Information

Author : Millers Attorneys

Landlord’s Lien or Hypothec

In a previous article it was said that the movable goods on rental premises fall under the landlord`s lien or hypothec. The rental is secured by the lien/hypothec in favour of the landlord over all movable goods on the premises. This right may only be utilised when the tenant is in arrear with his rental (The lien/hypothec is only effective when the legal process of issuing summons and subsequent judgment is followed).

The only goods excluded from the hypothec are goods under a notarial bond, hire purchase/ instalment sale and goods belonging to a third party that gave written notice of his ownership, to the landlord. Such notice must be given before the hypothec comes into operation in order for the real owner to receive protection.

This means that the landlord may obtain an order to attach the movable assets (simultaneously with the eviction order and by using the same summons) except those excluded as indicated above. These goods may now be sold in execution to recover his arrear rental and costs. The fact that the goods may belong to somebody else is no defence against the attachment unless notice has been given or the facts exist as stated above. The hypothec allows the landlord to attach and sell all movable goods on the premises to recover his arrear rental and costs.