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Are Normal Leases Excluded from the Act? |
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Dear Assessment Centre,
I have been to a CPA seminar and the normal leases are excluded form the act...( if it is not in the normal course of business of the landlord) This would then only apply for legal entities with assest value over R2mil and selective leases in normal course of business of the landlord.
Please advise whether your interpretastion is different.
Melanie (attorney of STBB ) is a fundi on the Act and this was stressed that most “normal” sales and leases are excluded
Regards
Hanlie
Reply:
Dear Hanlie
Leases are not excluded nor exempted from the CPA at all. The only lease that is excluded is one directly conducted between an owner and a tenant, two private individuals.
The education arm of the Consumer Protection Commission, a government organization, is educating the public. They are aware that attorneys are advising their clients incorrectly. I have urged them to put articles in the property section of the press in order to dispel this mistaken information. I would not be prepared to listen to anyone else barring them as they have been involved with the drawing up and implementation of this Act.
Every transaction in RSA falls under the CPA - if you look at Section 1 of the CP Act under Goods, it is well defined there. |
