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Agreement of Lease

AGREEMENT OF LEASE
(Unfurnished House)

MEMORANDUM OF AGREEMENT OF LEASE made and entered into by and between:-

                                           ______

Identity Number ___________________

Of _____________________________________________________________

(hereinafter referred to as "the Lessor")

and

__________________________________

Identity Number ____________________

Of _____________________________________________________________

(hereinafter referred to as "the Lessee"

1. The Leased Premises
The Lessor hereby lets to the Lessee who hires on the terms and conditions set out herein, the following immovable property :-

Erf _________________________________________________

Known as   __________________________________________

____________________________________________________

(hereinafter referred to as “the Leased Premises”)

2. Period Of Lease
2.1 This lease shall commence on ________________ and shall terminate on     _________________, on which date the Lessee undertakes to vacate the Leased Premises.
2.2

Subject to the Lessee’s compliance with this agreement, the Lessee shall have the option to renew this lease upon substantially the same terms and conditions contained herein, save that the rental for the period of renewal shall be agreed between the parties. Such renewal period shall be reckoned from the date of expiration of this agreement and shall be for a period of _________________ provided that notice to the Lessor of the Lessee’s intention to exercise this option is given in writing at least __________ calendar months before the date of expiration.

3. Rental
3.1 The rental payable by the Lessee to the Lessor during the currency of this Agreement shall be as follows :-
3.1.1 R______ per month from ________ to ________
3.1.2 R______ per month from ________ to ________
3.1.3 R______ per month from ________ to ________
3.2

The aforesaid rental shall be payable in advance on the first day of every month during the currency of this Agreement at such address as the lessor may nominate in writing from time to time.

3.3

Whenever the rates and taxes are increased during the Lease Period, the Lessor may, by written notice to the Lessee, increase the rent by the amount of the increase in the rates and taxes, calculated on a monthly basis. Every such increase in the rent shall take effect on the first date of the month following that in which the Lessor’s notice of the increase is received by the Lessee or, whichever is the later, the date on which the increase in rates and taxes takes effect.

3.4

That in the event of the interest rate presently levied upon the mortgage registered over the Leased Premises or the levy on the premises being increased at any time so as to cause the amount payable by the Lessor in respect thereof to be increased beyond the amount payable at the date of signature of this Agreement, then the Lessee shall pay the Lessor an additional amount equal to such monthly increase in the aforesaid bond instalment.

4. Deposit
4.1 On entering into this Lease, the Lessee shall pay the Lessor a deposit of R________.
4.2

Should any amount due by the Lessee be deducted from the deposit held by the Landlord at any time during the currency of this Lease or at the expiration thereof, the Lessee shall be obliged to pay to the Lessor such sum so as to ensure that the deposit at all times amounts to the sum reflected in 4.1 above.

5. The Lessee's Obligations
The Lessee hereby agrees and undertakes :-
5.1

to pay on due date the charges levied by any competent authority for water, electricity and gas and for such sanitary, sewerage and all refuse removal services as may not be included in the annual rates and taxes levied on the Leased Premises and any other Lessee’s consumption charges including but not limited to telephone charges. The Lessee shall be obliged to make application for his own electricity and water connections and to pay all deposits incidental thereto. The Lessor shall be entitled to a refund of the deposits paid to the credit of the Lessor;

5.2

At his own cost, to maintain and keep in repair the interior of the Leased Premises and to keep properly painted all interior surfaces where paint work is required and to further maintain in good order and repair the electrical, drainage, sanitary works, machinery plant, if any, and any installations in the Leased Premises, fair wear and tear excepted. If he shall fail to do so, the Lessor may effect such repairs or maintenance as may become necessary and shall be entitled to recover the costs thereof from the Lessee;

5.3

To keep and maintain all plate and window glass and mirrors in the Leased Premises in good order and condition and to replace at his cost any damaged or broken glass unless such damage or breakage is occasioned by vis major in which event the Lessor shall be liable;

5.4

Not to drive any nails or other objects into walls or woodwork or ceilings or any portion of the Leased Premises.

5.5 To use the Leased Premises solely as a Leased Premises house for himself and his family;
5.6

Not to store on the Leased Premises any goods of a hazardous nature other than to the extent authorised in the Insurance Policy for the time being issued to the Lessor covering the Leased Premises against damage by fire or explosion. If at any time the Lessee should desire to store on the Leased Premises goods of a hazardous nature in excess of those authorised by the said Insurance Policy, he shall at once in writing notify the Lessor of such intention. Upon receipt of such notice, the Lessor shall take reasonable steps to have the terms of such Insurance Policy altered to cover such storage. In the event of the Insurance Company requiring the Lessor to pay any additional premiums, the Lessee shall be obliged to pay on demand to the Lessor the amount of such excess premiums;

5.7

To allow the Lessor or his agents reasonable access to the Leased Premises after receipt of reasonable notice for the purpose of inspecting and repairing same;

5.8

To observe any of the conditions of title under which the Lessor owns the Leased Premises or any laws, by-laws or regulations which the Lessor is required to observe by reason of his ownership of the Leased Premises;

5.9

Not to alter, interfere with or overload the electrical or other lighting or heating installations in the Leased Premises and to replace, at his own cost, all keys, fluorescent or incandescent light bulbs and switches and sockets used or contained in the Leased Premises;

5.10

Not to allow or permit disorderly conduct or noise in the Leased Premises so as to constitute a nuisance to the occupiers of neighbouring or adjoining premises;

5.11 Not to allow the Leased Premises to stand vacant for any period exceeding 1 (one) month during the term of this Agreement;
5.12

Not to install any fixtures or fittings in the Leased Premises without the written consent of the Lessor, which consent shall not be unreasonably withheld. It shall be at the option of the Lessee to remove any authorised fixtures and fittings, provided that any fixtures or fittings not removed shall become the property of the Lessor without obligation to compensate the Lessee in respect thereof. The Lessee shall be obliged to make good any damage or blemishes occasioned to the Leased Premises on removal by the Lessee of any fixtures or fittings;

5.13  Not to make any alterations or additions to the Leased Premises without the written consent of the Lessor;
5.14 To observe all the terms and conditions which may be imposed by the Lessor in giving his consent in terms of clause 5.12 and 5.13;
5.15

To take care to avoid any blockage in any sewerage or water pipes or drains connected with the Leased Premises and to cause to be removed at his own cost any obstruction or blockage which occurs in such pipes or drains as a result of any negligent act or omission on the part of the Lessee or his invitees, and to cause to be repaired any sewer, pipe or drain which is damaged in consequence of any negligent act or omission on the part of the Lessee or his invitees.

5.16

The charges reflected herein shall be charges capable of deduction from any deposit held by or on behalf of the lessor during the currency of this Lease or at termination thereof.

6. Lessor's Obligations

The Lessor hereby agrees to keep and maintain, at his own cost, the exterior and roof, gutters and drain pipes of the Leased Premises (excepting the glass in windows and doors of the Leased Premises) in good order and condition.

7. Rates And Taxes

The Lessor shall pay all rates which now or may hereafter be levied upon the Leased Premises during the period of this Lease, subject to the condition that in the event of such rates being at any time hereinafter increased of the amount payable for the year in which this Lease commenced, whether by an increase in the rateable value of the buildings or land or both, or by reason of an increase in the assessment rate, the Lessee shall pay such increase on a pro rata basis, which amount shall be payable monthly concurrently with the rental.

8.  Destruction Or Damage Of Premises
If the Leased Premises shall be damaged or destroyed as a result of fire, lightning, explosion or flood, this Lease shall not be terminated thereby, but :-
8.1

in the event that the Lessee is, through no fault or negligence on his part, be partially deprived of his beneficial occupation of the Leased Premises in consequence of damage caused by any such occurrence, the Lessor shall take reasonable and expeditious steps to repair the Leased Premises, and the Lessee shall not be entitled to a reduction in the said monthly rental which is commensurate with such deprivation;

8.2

if the Leased Premises shall be destroyed as a result of any of the aforesaid occurrences or shall be damaged to such extent that the Lessee is wholly deprived of his beneficial occupation thereof, this Lease shall ipso facto terminate.

9.  Breach And Automatic Late Charge
9.1 An automatic late charge of R100 (One Hundred Rand) will be assessed for rents not received by 12h00 on the date that the rent is due;
9.2 Should :-
9.2.1 the monthly rental or any other amount due in terms of this agreement not be paid on due date; or
9.2.2

the Lessee commit or suffer or permit a breach of any other term of this Lease and fail to remedy such breach within 7 (seven) days after notice has been given to the Lessee requiring the Lessee to remedy such breach; or

9.2.3

the Lessee or any surety for the Lessee’s obligations be placed under sequestration, or liquidation or judicial management, whether provisional or final, as the case may be, then the Lessor shall be entitled to immediately cancel this Agreement and retake possession of the Leased Premises without prejudice to any of his other rights under this Lease or at law.

9.3

The Lessee agrees and undertakes to pay to the Lessor all expenses, costs and charges which the Lessor may incur arising out of a breach by the Lessee of this Lease, including but not limited to any costs incurred in tracing the Lessee, collection commission and legal costs on an attorney and client scale.

10. Swimming Pool

The Lessee undertakes to keep and maintain the swimming pool filtration equipment in good order during this Agreement of Lease and to supply the necessary chemicals therefor and to keep same clean. If the swimming pool or equipment be damaged through any act or omission on the part of the Lessee or his invitees, the Lessee shall be responsible to reinstate the said pool and equipment to the good condition in which it was as at the date of commencement of this Agreement, fair wear and tear excepted.

11. Garden
11.1 The Lessee shall keep and maintain the garden, including the lawns, trees, shrubs and plants in good order and condition. Without derogating from the generality of the aforegoing, the Lessee shall at his cost ensure that:-
11.1.1 the lawn is mowed on a regular basis;
11.1.2 the plants are cared for in a proper manner.
11.2

If the Lessee shall fail to maintain the garden as above, the Lessor shall be entitled in this discretion to attend to same and to recover the cost thereof on demand from the Lessee.

12. Animals
The Lessee agrees that he shall not be allowed to keep any animals inside or on the Leased Premises without the prior written consent of the Lessor, which consent shall not be unreasonably withheld.
13. Cession And Sub-Letting
The Lessee shall not without the prior written consent of the Lessor:-
13.1 cede, transfer or burden any of its rights or delegate any of its obligations under this Lease; or
13.2 sub-let or grant possession or occupation of the whole or any part of the Leased Premises to any other person.
14. Lessor's Right To Inspect View And Advertise The Property
The Lessor shall be entitled :-
14.1 to inspect the Leased Premises at all reasonable times;
14.2

to affix and exhibit on the windows of the Leased Premises “To let” and/or “For sale” notices during the period of 2 (two) months immediately prior to the termination of this Lease and;

14.3

together with prospective Lessees and/or purchasers of the Leased Premises to view the interior of the Leased Premises at all reasonable times.

15. Exclusion Of Liability
15.1

Neither the Lessor nor any of its directors, agents, employees or servants shall be liable for personal injury to or death of any person or the loss of or damage to any property of whatsoever nature in the Leased Premises arising or caused and whether by reason of the default or negligence of the Lessor or any of the said persons or otherwise.

15.2

The Lessee hereby indemnifies the Lessor and its directors, agents, employees and servants against any claim of whatever nature which may be made against any of them arising out of any of the aforegoing occurrences.

16. Warrant Of Authority
The person signing this Lease on behalf of the Lessee expressly warrants this authority to do so.
17. Suretyship
The person signing this Lease shall be bound to the lessor as surety and co-principal debtor for all the obligations of the Lessee to the Lessor under this Lease as well as those arising in consequence of any termination thereof.
18. Costs
The Lessee shall be responsible for all costs together with VAT thereon (if applicable) and stamp duty  in respect of the negotiation and preparation of this Agreement.
19. Domicilia And Notices
19.1 The Lessee chooses the Leased Premises as his/her/its domicilium citandi et executandi..
19.2

Any notice, demand or other communication properly addressed by the Lessor to the Lessee at the latter’s domicilium in terms hereof and sent by prepaid registered post shall be deemed to be received by the latter on the 4th (fourth) business date following the date of posting thereof. This provision shall not be construed as precluding the utilisation of other means and methods (including telefacsimile) for the transmission or delivery of notices, demands and other communications, but no presumption of delivery shall arise if any such other means or method is used.

20. Sale of the Property

The validity of this Lease shall not in any way be affected by the transfer of the Leased Premises from the Lessor pursuant to a sale thereof. It shall accordingly, upon registration of transfer of the property into the name of the purchaser, remain of full force and effect save that the purchaser shall be substituted as Lessor and acquire all rights and be liable to fulfill all the obligations which the Lessor, as lessor, enjoyed or was liable to fulfill in favour of the Lessee in terms of the Lease.

21. Rental Housing Act
The parties acknowledge that in terms of the Rental Housing Act, No. 50 of 1999, certain terms are deemed (where applicable) to apply to this agreement. For ease of reference, such terms are recorded herein:-
(a) the Lessor must furnish the Lessee with a written receipt for all payments received by the Lessor from the Lessee;
(b)

such receipt must be dated and clearly indicate the address, including the street number and further description, if necessary, of a Leased Premises in respect of which payment is made, and whether the payment has been made for rental, arrears, deposit or otherwise, and specify the period for which payment is made;

(c)

the Lessor may require a Lessee, before moving into the Leased Premises, to pay a deposit which, at the time, may not exceed an amount equivalent to an amount specified in the agreement or otherwise agreed between the parties.

(d)

the deposit contemplated in paragraph (c) must be invested by the Lessor in an interest bearing account with a financial institution and the Lessor must, subject to paragraph (g) pay the Lessee interest at the rate applicable to such account which may not be less than the rate applicable to a savings account with a financial institution, and the Lessee may during the period of the lease request the Lessor to provide him or her with written proof in respect of interest accrued on such deposit, and the Lessor must provide such proof on request. Provided that where the Lessor is a registered estate agent as provided for in the Estate Agency Affairs Act, 1976 (Act No. 112 of 1976), the deposit and any interest thereon shall be dealt with in accordance with the provisions of the Act;

(e)

the Lessee and the Lessor must jointly, before the Lessee moves into the Leased Premises, inspect the Leased Premises to ascertain the existence or not of any defects or damage therein with a view to determining the Lessor's responsibility for rectifying any defects or damage or with a view to registering such defects or damage, as provided for in subsection 5(7) of the Act;

(f)

at the expiration of the lease, the Lessor and Lessee must arrange a joint inspection of the Leased Premises at a mutually convenient time to take place within a period of three days prior to such expiration with a view to ascertaining if there was any damage caused to the Leased Premises during the Lessee's occupation thereof;

(g)

on the expiration of the lease, the Lessor may apply such deposit and interest towards the payment of all amounts for which the Lessee is liable under the said lease, including the reasonable costs of repairing damage to the Leased Premises during the lease period and the costs of replacing lost keys and the balance of the deposit and interest, if any, must then be refunded to the Lessee by the Lessor not later than 14 (fourteen) days of restoration of the Leased Premises to the Lessor;

(h)

the relevant receipts which indicate the costs which the Lessor incurred, as contemplated in paragraph (g) must be available to the Lessee for inspection as proof of such costs incurred by the Lessor;

(i)

should no amounts be due and owing to the lessor in terms of the lease, the deposit, together with the accrued interest in respect thereof, must be refunded by the lessor to the Lessee, without any deduction or set-off, within 7 (seven) days of expiration of the lease.

(j)

failure by the Lessor to inspect the Leased Premises in the presence of the Lessee as contemplated in paragraphs (e) or (f) is deemed to be an acknowledgment by the Lessor that the Leased Premises is in a good and proper state of repair, and the Lessor will have no further claim against the Lessee who must then be refunded, in terms of this subsection, the full deposit plus interest by the Lessor;

(k)

should the Lessee fail to respond to the Lessor's request for an inspection as contemplated in paragraph (f), the lessor must, on expiration of the lease, inspect the Leased Premises within (7) seven days of such expiration in order to assess any damages or loss which occurred during tenancy;

(l)

the Lessor may in the circumstances contemplated in paragraph (k), without detracting from any other right or remedy of the Lessor, deduct from the Lessee's deposit and interest the reasonable costs of repairing damage to the Leased Premises and the cost of replacing lost keys;

(m)

the balance of the deposit and interest, if any, after the deduction of the amounts contemplated in paragraph (l), must be refunded to the Lessee by the Lessor not later than 21 (twenty-one) days after the expiration of the lease;

(n)

the relevant receipts which indicate the costs which the Lessor incurred, as contemplated in paragraph (l), must be available to the Lessee for inspection as proof of such costs incurred by the Lessor; and

(o)

should the Lessee vacate the Leased Premises before expiration of the lease, and without notice to the Lessor, the lease is deemed to have expired on the date that the Lessor established that the lessee has vacated the Leased Premises but in such event the Lessor retains all his or her rights arising from the Lessee's breach of the lease.

21. Whole Agreement
21.1 This is the entire agreement between the parties.
21.2 Neither party relies in entering into this Lease upon any warranties, representations, disclosures or expressions of opinion which have not been incorporated into this Lease as warranties or undertakings.
21.3 No variation or consensual cancellation of this Lease shall be of any force or effect unless reduced to writing and signed by both parties.
22. Non-Waiver
22.1

Neither party shall be regarded as having waived, or be precluded in any way from exercising any right under or arising from this Lease by reason of such party having at any time granted any extension of time for, or having shown any indulgence to the other party with reference to, any payment or performance hereunder, of having failed to enforce, or delayed in the enforcement of, any right of action against the other party.

22.2

The failure of either party to comply with any non-material provision of this Lease shall not excuse the other party from performing the latter’s obligations hereunder fully and timeously.

23.  Special Conditions
________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

SIGNED at PORT ELIZABETH on this day of 2001

AS WITNESSES:

1. _____________________               _______________________________
                                                       for and on behalf of the Lessor

2. _____________________

SIGNED at PORT ELIZABETH on this day of 2000.

AS WITNESSES:

1. _____________________               _________________________
                                              for and on behalf of the Lessee,
                                                       warranting his authority and as surety

2. _____________________

 


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