PROTECTION FOR PROPERTY OWNERS IN LEASE AGREEMENTS - SUGGESTED CLAUSES

Rates, Taxes and Other Charges
1. The Lessee shall, during the subsistence of this lease or for as long as he/she occupies the leased premises, bear and pay all rates, taxes and other charges, including but not limited to water and lights, levied by the Local Authority on the leased premises, which payments shall be made on demand by the Local Authority;
2. The Lessee shall, within 24 (twenty four) hours after payment in terms of clause 1 was made, supply proof thereof to the Lessor;
3. The Lessee hereby expressly consents and gives irrevocable authority to the Lessor to obtain copies of all accounts due by the Lessee in respect of the leased property from the Local Authority.
4. This clause shall be deemed to be a material condition of this lease agreement and any breach of this clause shall be deemed to go to the root of the agreement of lease and shall entitle the Lessor to cancel the agreement in terms of the provisions of the cancellation clause.

Deposit

In addition to the rental deposit payable, the Lessee shall pay an amount of R_______ as a water and lights deposit. These deposits shall be repaid to the Lessee after termination of the lease, but the Lessor shall be entitled to deduct from the deposits any amounts whatsoever owing by the Lessee to the Lessor and/or by the Lessee to the Local Authority in respect of rates, taxes and other charges, including but not limited to water and lights levied by the Local Authority in respect of the leased premises.

_________________________
Notes:

1. The above clause is only a guideline and should be amended in accordance with the specific requirements of the Lessor in different situations;
2. A higher deposit should be obtained to make provision for any outstanding Municipal charges;
3. Lessor’s are advised to ensure that the normal breach clauses which make provision for the cancellation of the contract include breaches relating to the abovementioned clauses.