It is essential that there is no ambiguity regarding the date
and manner in which Rental is to be paid by the Tenant. Generally, it is
advisable to clearly stipulate that Rent must CLEAR in the Landlord’s nominated
bank account by the date specified in clause 1.12 of the Schedule. If this is
not specified then Tenants would be able to effect payment on the date
specified in clause 1.12, but the funds would potentially only clear a few days
later or, thereby prejudicing the Landlord. Unlike in the case of Residential
Leases, Rent generated in respect of Commercial Leases does attract VAT. As a
general rule, the rate applicable will be 14%, but there are certain exceptions
in the Income Tax Act 58 of 1962, hence the provision for this rate to be
altered in clause 1.16 of the Schedule.