You will notice that clause 6 in the CPA compliant Lease Agreement differs from clause 6 in the non-CPA compliant Lease Agreement. The reason for this is that in terms of section 14 of the CPA, where the Initial Period of a Lease Agreement comes to an end and the Tenant has not communicated the desire to either renew or terminate the Lease Agreement, the Lease Agreement will continue on a month to month basis.
The implication of this is that the Lease Agreement will no longer be deemed to be a fixed-term contract and will rather be a periodic lease. As such, section 14 of the CPA will no longer apply, the 20 business days’ notice provision will fall away and either party may cancel the Lease Agreement on one Calendar Month’s notice to the other party. Given that section 14 obviously does not apply to the non - CPA compliant Lease Agreement, the Month – to –Month provision is obviously not relevant and in the Non-CPA compliant Lease Agreement the onus is on the Tenant to notify the Landlord of the fact that he or she wishes to renew the Lease Agreement.