The Contingency Lease Agreement is designed for situations where parties wish to enter into a lease arrangement subject to certain conditions being met. This document type is commonly used in South African property law when the commencement or continuation of a lease depends on specific events or requirements, such as obtaining necessary permits, completing renovations, or securing financing. The agreement must comply with South African legislation, including the Rental Housing Act, Consumer Protection Act, and common law principles. It includes detailed provisions for the contingency conditions, standard lease terms, and the consequences of both fulfillment and non-fulfillment of the conditions. This type of agreement provides protection for both landlord and tenant by clearly defining the conditional nature of their commitments and the pathway to a fully effective lease.
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1. Parties: Identification and details of the Landlord and Tenant, including registration/ID numbers and contact details
2. Background: Context of the agreement and explanation of the contingency nature of the lease
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpretation
4. Contingency Terms: Specific conditions that must be met for the lease to become effective
5. Commencement and Duration: Start date, duration of lease, and connection to contingency fulfillment
6. Premises Description: Detailed description of the leased property and any included fixtures/fittings
7. Rental and Deposits: Rental amount, payment terms, deposit requirements, and annual escalation
8. Use of Premises: Permitted use of the property and any restrictions
9. Maintenance and Repairs: Responsibilities of landlord and tenant regarding property maintenance
10. Insurance and Risk: Insurance requirements and allocation of risk between parties
11. Breach and Termination: Consequences of breach and conditions for termination
12. Notices and Domicilia: How and where official notices must be delivered
13. General Provisions: Standard legal clauses including whole agreement, variation, and governing law
1. Utilities and Services: Include when utilities are not included in rental amount and need separate regulation
2. Security and Access: Include for properties in security complexes or with specific access requirements
3. Subletting and Assignment: Include when these rights need to be specifically addressed or prohibited
4. Property Management: Include when a property manager is involved in addition to the landlord
5. Special Conditions: Include when there are unique requirements specific to the property or parties
6. Force Majeure: Include when specific provisions for unforeseen events are required
7. Option to Purchase: Include when tenant is given an option to purchase the property
8. Fit-out and Alterations: Include for commercial properties requiring tenant modifications
1. Schedule 1: Property Details: Detailed description of the property including plans and specifications
2. Schedule 2: Rental Schedule: Detailed breakdown of rental amounts, escalations, and payment dates
3. Schedule 3: Condition Report: Detailed report on the condition of the property at commencement
4. Schedule 4: House Rules: Applicable rules if property is in a complex or shared building
5. Schedule 5: Contingency Conditions: Detailed description of contingency conditions and verification process
6. Appendix A: Inventory List: List of fixtures, fittings, and furniture included in the lease
7. Appendix B: Maintenance Schedule: Detailed breakdown of maintenance responsibilities
8. Appendix C: Required Certificates: Copies of compliance certificates and property documentation
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