Selling Your Property with Tenants in Place? Know the Law

Lease Rules Trump a Sale — Always

In South Africa, the principle of huur gaat voor koop ensures that existing leases stay in place - even after a property changes hands. If your tenant’s fixed-term lease hasn’t ended, the new owner must honour the lease terms until expiry.

Study the Lease — Clauses Matter

Before listing, review your lease carefully. A well-drafted agreement might include:

  • Early Termination Option: Allows ending the lease for sale or owner occupancy—with typical notice between 40–60 days, though some clauses specify three months .

  • Marketing & Access Permissions: Enables viewings and advertising during occupation.

  • Inspection & Sale Clauses: Details on maintenance, rent status, and potential sale impacts.

Without these clauses, you're bound by the original lease and Whats written about termination rights.

Consumer Protection Act Rules

If there's no early-termination clause, landlords must wait for the lease to expire or the tenant to invoke early termination. Tenants—who are natural persons—can cancel a fixed-term lease with 20 business days’ notice under the Consumer Protection Act. Landlords, however, can only evict under specific legal grounds (e.g. breach of contract), and must issue formal notice and follow court procedures under PIE.

What Buyers Should Know

Prospective buyers inheriting tenants should:

  • Confirm whether the lease transfers with the sale.

  • Check if there's a vacant-occupation clause in the Offer to Purchase.

  • Ensure the tenant’s deposit is lawfully transferred and held in trust.

Agreement & Negotiation Tips

If early vacant occupation is desired, negotiate with the tenant—perhaps offering relocation assistance—for a mutually agreeable exit. With properly drafted clauses, this process can be smooth and legally secure.

Final Thoughts:
Selling a property with tenants is entirely feasible—but it requires careful legal and contractual planning. Incorporate early-termination and marketing provisions in leases, understand huur gaat voor koop, and seek legal advice when crafting sale agreements.