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Clina Steyn, Managing Director of SSLR Incorporated, notes that the early cancellation of a lease agreement is regulated by legislation, specifically the Consumer Protection Act and the Rental Housing Act.
âIf a tenant wishes to end a fixed-term lease agreement during the fixed term, this constitutes a cancellation in terms of Section 14 of the Consumer Protection Act,â Steyn explains. âThe tenant (as the consumer) is allowed to cancel the fixed-term agreement by giving the landlord (the supplier) 20 business daysâ notice. The landlord has the right to claim a reasonable cancellation penalty from the tenant. Even if the lease agreement is silent on this, the landlord may claim the
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