This clause only appears in the CPA compliant
Lease Agreement and it is a very important clause. In terms of section 14 of
the Consumer Protection Act 68 of 2008 ("the CPA"), the onus is only
the Landlord or the Agent, as the case may be, to notify the Tenant of the fact
that the Initial Period is due to expire and to set out all of the Tenant’s options
in this regard.
This notification MUST be given not more than 80, but
not less than 40 business days prior to the expiry of the Initial Period. This
leaves a grey area where notification is not given within the requisite period,
which has not yet been interpreted by the Courts and could potentially cause a
dispute between the parties. As such, it is important for an Agent or Landlord
to diarise precisely when the 80 business days period is to begin and ensure
that the requisite notice is given so as to avoid any ambiguity.
