Lease Agreement During Lockdown

Sep 25th, 2021 | By | Category: Uncategorized

While there is no evidence that this notice is legally binding on tenants and landlords, it serves as a guide and test to help parties find an amicable solution that is economically viable for both the tenant and the landlord. The proposal gives landlords the flexibility and discretion to make an informed decision about the appropriate “relief” offered to tenants, but also gives tenants an indication of what they can expect in conversations with their landlords. At the time of publication, it was expressly stated that the package was based on the assumption that the lockdown would not exceed 21 days. It remains to be seen whether this issue will be re-examined in light of the lockdown extension. § 56 of the Contracts Act does not apply to rental contracts: The good news? It is much easier to change than some have thought. Digital lease setup can be as simple as integrating DocuSign into Microsoft 365 or the program you use to create your contracts – it works with the apps, services, and equipment that brokers, agents, buyers, and sellers already use. It is important that DocuSign`s electronic signatures are unique, documentable, encrypted, and tame-resistant. The proposal recommends: (1) certain minimum and maximum tranches for which the rental is partially or totally cancelled, as well as the rental costs; and (2) the eligibility requirements for such an exemption. The proposal also proposes that landlords also consider, on a case-by-case basis, granting relief to office, industrial and hotel tenants if the lockdown has severely affected the tenant and where justified, and that these tenants will negotiate discharge terms directly with their landlords. For this type of tenant, however, there are no rental allowances or rental fees.

The rules allow retail tenants (only in the three categories mentioned above) and owners of retail property to enter into three types of agreements that, under normal circumstances, would be prohibited by the Competition Act 89 of 1998 (as amended). These agreements are limited to agreements concerning (1) payment holidays and/or rent rebates for tenants; (2) restrictions on the evacuation of tenants; and (3) the suspension or adaptation of terms in the lease agreement that prevent designated tenants from taking the necessary measures to protect viability during the national disaster. . . .

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