Author: Daniel Els – STBB
12 July 2016
THE TENANT’S RIGHTS WHEN YOU SELL YOUR HOUSE
One frequently receives queries with regard to a tenant’s position where the leased premises is sold, mostly from tenants indicating that they were simply told to vacate before transfer.
The point of departure is however that in our law, a tenant is protected by the common law ‘huur gaat voor koop’ rule. This means that the lease agreement will survive the sale, the new owner will become the landlord and the terms of the existing lease will stay in force until the lease terminates. The new owner will also be responsible to refund the deposit less any claim for damages. A lease agreement may have a specific provision to the contrary and if you anticipate that you may sell property that you are putting up for rental, consider making provision for this.
Contact STBB for assistance.