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Thread: RENTAL PAID/ CANCELLATION OF A LEASE AGREEMENT

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    RENTAL PAID/ CANCELLATION OF A LEASE AGREEMENT

    Hi All

    I really need help/clarity on this following issue:

    1) I rented a townhouse from an agent.
    2) I then cancelled the lease in accordance with the CPA act by giving the relevant notice.
    3) According to the CPA act - A reasonable penalty may be charged which I understand and you can no longer be held liable until the end of the lease period.
    4) This penalty can only be calculated once a replacement tenant has been found.
    5) A replacement tenant was found and this tenant paid all the deposits etc

    Based on all this they have not returned my deposit - There was no damage to the property what so ever.

    They are holding a months rental, damage deposit and services deposit.

    They have stated that the damage deposit forms part of the penalty. The penalty charged is thus a months rental plus all the deposits I do not agree with this at all??? The agent is holding this money. I DONT SEE THIS A REASONABLE PENALTY IN TERMS OF THE CPA ACT.

    Further to the above they want be pay a month's rental to the owner ? This cannot be right?

    What is the purpose of the CPA act then as this is not reasonable at all.

    Could someone please give me more clarity on this will greatly appreciate all the input.

    Thanks

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    According to my knowledge and personal opinion, the NCA does not apply to leases of immovable property. However when an estate agent or landlord engages with a credit bureau the estate agent or landlord will need to comply with the NCA, for example when: performing a credit check on a tenant (consent is required) , loading a default(blacklising) against the tenant (20 business days notice of intention to list is required)


    Section 8 of Credit agreement I think

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Roger15 View Post
    According to my knowledge and personal opinion, the NCA does not apply to leases of immovable property.
    Did you perhaps intend CPA?
    The trouble with opportunity is it normally comes dressed up as work.

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    According to the CPA, a lease agreement can be terminated by the tenant giving the relevant notice in this case 20 days which I did do.

    My question is it basically legal what they have done as per above - I need more clarity on this issue please??

    Thanks

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    oops sorry

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    Jddt - I'd ask for a detailed breakdown of the cancellation penalties raised. They might not be unreasonable as not all costs associated are incurred monthly.

    For example - it's common practice for the agent to get a fee upon the signing of the lease. This is most often based on either the total value or the annual value of the lease and would need to be recovered in full despite the early termination.
    The trouble with opportunity is it normally comes dressed up as work.

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    Hi Dave

    I have done this and still waiting for the info.

    What would you deem a reasonable penalty fee to be?

    Can they hold back the damage deposit as well and the full months rental?

    The CPA talks about a 10% - Would this be 10% of the annual value as described by you above?

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Roger15 View Post
    oops sorry
    In that case, check out the definition of "service" per the CPA - it seems to include rental of fixed property.
    The trouble with opportunity is it normally comes dressed up as work.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Jddt View Post
    The CPA talks about a 10% - Would this be 10% of the annual value as described by you above?
    I'm not too sure where you get the 10% figure from.

    Regulation 5.2 has this to say:

    2) For purposes of section 14(3), a reasonable credit or charge as contemplated in section 14(4)(c) may not exceed a reasonable amount, taking into account-

    a) the amount which the consumer is still liable for to the supplier up to the date of cancellation;

    b) the value of the transaction up to cancellation;

    c) the value of the goods which will remain in the possession of the consumer after cancellation;

    d) the value of the goods that are returned to the supplier;

    e) the duration of the consumer agreement as initially agreed;

    f) losses suffered or benefits accrued by consumer as a result of the consumer entering into the consumer agreement;

    g) the nature of the goods or services that were reserved or booked;

    h) the length of notice of cancellation provided by the consumer;

    i) the reasonable potential for the service provider, acting diligently, to find an alternative consumer between the time of receiving the cancellation notice and the time of the cancelled reservation; and

    j) the general practice of the relevant industry.
    The trouble with opportunity is it normally comes dressed up as work.

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    Hi Dave

    This seems to be a stupid answer here from you - This relates to the sale of goods not rental income.

    Not so clever after all.

    Thanks

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