Offer to Lease

1. A few changes were made to the automatic renewal clause to make the meaning simpler and clearer.
2. All references to stamp duty was removed, because there is no longer any stamp duty payable on leases.
3. Some additional notes were included to help with the completion of the template.

Lease Terms

We have included a statement that no stamp duty is payable so that there is no confusion.

If you have any questions please do not hesitate to contact us.

We have noticed a trend that more and more people are wanting to invest in property through fractional ownership or with friends through a property investment club. The club usually takes the form of a company and the Shareholder Agreement tries to ensure that the investors or friends going into the club remain friends by regulating their relationship.

Community of property can be the mother of all disputes. Many of you will have had first hand experience of this.  The shareholder agreement prevents disputes and conflict in the future.

Who are they suitable for?

• Fractional ownership schemes
• Property investment clubs
• Property syndicate companies

What you get?

A Shareholders Agreement template made up of:

• Shareholder Terms,
• a Company Information Sheet and
• a Shareholder Acceptance for each shareholder.

The Shareholders Terms are the general terms relating to the relationship between shareholders of a property syndicate company.  The Company Information Sheet includes all the information about the property syndicate company.  By signing the Shareholder Acceptance, each shareholder accepts the terms relating to the relationship between the shareholders.

The following are included in the templates:

1. Tags {in curly brackets} - these denote where variables will need to be inserted when an instance of a template is created.
2. Drafting notes [in square brackets] - these notes assist a person when they create an instance of the template.

The templates will be branded with your branding.

The templates are drafted in plain language and easy to read.

Read more about the benefits of the PropDox templates.

Easy to mange

The templates are structured so that both your templates and the actual agreements are easy to manage.   Good document management is important and part of good corporate governance.

What does it cost?

R398 for each shareholder. Minimum fee is R796 per agreement. So for example, the PropDox fee for a Shareholders Agreement with 4 shareholders is R1,592.

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the document.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

From 2010 we will be introducing credit card facilities which will enable you to pay and receive the document immediately. We offer a 100 percent money back guarantee.  If you are not happy for any reason we will give you your money back.

Related Guidance

• Fractional ownership schemes and the law
• Mother of all disputes
• Shareholders Agreement template added to PropDox

• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

R95 for a residential property (like a house, flat, room or apartment).

Order Now

R195 for a commercial property (like an office, a warehouse or industrial premises).

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

R95 for a residential property (like a house, flat, room or apartment).

Order Now

R195 for a commercial property (like an office, a warehouse or industrial premises).

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

• deals with the issues related to commercial property
• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

For R195, we will email you a template that you can complete quickly.

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

• deals with the issues related to commercial property
• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

For R195, we will email you a template that you can complete quickly.

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

We offer a 100 percent money back guarantee.  If you are not happy for any reason we will give you your money back.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

For R95, we will email you a template that you can complete quickly.

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

We offer a 100 percent money back guarantee.  If you are not happy for any reason we will give you your money back.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

• will protect your rights
• covers all the important issues
• is specifically drafted for properties in South Africa
• is easy to sign
• is in plain language and easy to read
• is up-to-date (updated in October 2009)
• is water tight

Look no further!

“It was a great pleasure doing business with your organization
I am very impressed with your service!!”
Edward Morton, LA RESIDENCE, October 2009

For R95, we will email you a template that you can complete quickly.

Order Now

We will email you an invoice and immediately on receipt of payment, we will email you the template.  From 2010 we will be introducing credit card facilities that will enable you to pay and receive the document immediately.

If you have any questions please email support@propdox.co.za or call 083 322 2445.

“Thank you, contract is perfect”
Stephan, November 2009

Read more about the benefits of the PropDox templates and why the PropDox Lease templates are better. Remember that with free templates, you get exactly what you pay for.

Offer to Lease

1. Only a few of the fields in the Offer to Lease are now required fields. It is therefore possible to create a partially completed Offer. So for example, if you know the Landlord, the Property and Premises, you can generate a Offer that includes these details but is otherwise blank. Please remember that it is important that every single field is completed prior to signature. If a field is not applicable then please insert “not applicable“. Otherwise you can insert the word “none“.
2. The process to create an Offer is now simpler because we have removed the process map that used to appear on the left-hand side. The questions display better.
3. It is now possible to select an agent. All the details of the agent can be included in the Offer, including the bank details of the agent. The commission payable to the agent is also included in the Offer.
4. Steps in the process appear or disappear based on the user’s response. The Offer is shorter when it can be. For example, the operating costs table disappears when it is not relevant.
5. Clauses have been inserted to cater for situations where there is an automatic renewal of the Lease Agreement or where the Tenant has an option to renew the Lease Agreement.
6. The calculation relating to the rate at which rental escalates has been clarified.
7. “Storage” has been added as an item for which rental can be charged.
8. A field has been included to capture the specific purpose for which the premises are leased.
9. The Optional Standard Special Terms that can be selected have been updated. It is now easier to select them from the drop down list. A list of the Optional Standard Special Terms is available under the templates tab.
10. Additional lines have been added into the table called rental and additional custom special terms.

Lease Terms

1. A clause has been inserted to allow Landlords to provide information to credit bureaus. This is a requirement in terms of the National Credit Act.
2. An amendment to clause 12.18 allows landlords to specify the hours during which a retail tenant must remain open.
3. Clause 15.6 has been inserted to deal with a possible enrichment lien that a Tenant may have.
4. A clause has been inserted to deal with the landlord’s hypothec.
5. Clauses 30.3 and 30.4 have been inserted under General.

If you have any questions please do not hesitate to contact us.

• a landlord recover unpaid rent from a tenant or avoid a damages claim; or
• a tenant prevent a landlord from wrongfully retaining their goods.

Let’s look at a practical example.  Business for a gift shop has slowed dramatically over the last six months and has not paid rent for the last two months.  The owner of the gift shop decides to do a “runner” - clear out the shop over the weekend and disappear in the hope that the landlord doesn’t bother to pursue them.  The landlord finds out about the plan, locks the shop over the weekend, and demands that they pay all outstanding rent before the landlord will unlock the shop.  The tenant does not pay, so the landlord sells the goods.  Of late, due to current economic conditions, this is happening more and more.

When rent is due and payable and the tenant has not paid it, a landlord has a hypothec over the goods of the tenant that are on the premises.  This means that a landlord may sell the goods of the tenant to recoup outstanding rent.

The hypothec comes into existence automatically (by operation of law) and therefore the parties do not need to agree on it in the lease agreement.  However, the benefit (selling the tenant’s goods to recoup outstanding rent) is not automatic.  To get the benefit a landlord has to go to court.  Landlords don’t like this because it slows the process down and gives a tenant a window of opportunity to remove the goods.  The landlord’s hypothec ceases to operate regards any goods that are removed from the premises.  This is true even if the tenant does a “runner” or the landlord removes them, unless the removal is pursuant to a writ of execution in proceedings for payment of rent.  From a practical perspective, you can see why people resort to doing a “runner” or locking the doors.

However, if a landlord takes the law into their own hands and prevents the tenant from removing the goods, the landlord is liable for damages for the wrongful detention of goods.  For this reason, a landlord should consider getting an interdict to prevent the removal of the goods that are subject to the hypothec.  Further, a landlord can only sell the goods with a court order.

An agreement can change the hypothec.  This is very important, because some lease agreements actually unintentionally negatively affect the remedy of a landlord.  Some people refer to the landlord’s tacit hypothec as the landlord’s lien.

The hypothec lasts only for so long as the tenant fails to pay the rent.  Therefore, if the tenant pays, then the hypothec ceases to operate.  The hypothec does not end when the lease terminates, so a landlord can cancel the lease agreement and still exercise their hypothec.

So, the next time someone uses the term “landlord’s tacit hypothec” in polite conversation, you’ll know what it means.