What is a Notarial Lease Agreement?
Notarial Lease Agreement
A notarial lease agreement is a written contract (long term lease agreement) where the lessor undertakes to grant the lessee the use and enjoyment of immovable property in exchange for consideration.
The long term lease agreement shall only be valid if it is duly registered against the title deed of the property, and must be registered in the same deeds registry where the property itself is registered.
A long term lease is a lease agreement of property:
- for a period of not less than 10 years; or
- for the natural life of the lessee or any other person mentioned in the lease; or
- which is renewable from time to time at the will of the lessee, indefinitely or for periods which, together with the first period amount in all to not less than 10 years.
A lease agreement can evidently only be registered in a deeds registry if it is in writing. Both the lessor and the lessee will sign the agreement, which signatures must be attested by a notary public. The parties must also sign in the presence of two competent witnesses.
It is essential that the following must be explicitly agreed upon in the contract:
- The parties to the contract;
- An undertaking by the lessor to give the lessee the use and enjoyment of the property;
- The duration of the lease; and
- An undertaking by the lessee to pay rent to the lessor.
It is important to note that when the property is sold, the new owner remains bound by the existing lease agreement in terms of the “huur gaat voor koop” rule.