Note that a leasing extension is different from a leasing extension. An extension usually indicates that a new lease is concluded, binding the parties to potentially new terms. An extension merely continues the previous agreement, with, where appropriate, a revision of certain sections. Rental renewals and lease renewals allow the tenant (and owner) to continue renting real estate. However, if you want to renew your lease, you should find out which document is most appropriate for your circumstances. It is important to think about the impact of the distinction between renewal or renewal of the lease on other promises and conditions in the lease agreement. While enlargements and extensions have similar effects, there are some differences. However, when the tenant tried to exercise the second option of extending a third five-year period, the landlord stated that it was appropriate for the proposed extension to an agreed rent of R150,000 per month, plus VAT. In response, the tenant claimed that a fair rent represents an escalation of 8% per year compared to the rent that prevailed at the time. The tenant also suggested that the matter be referred to arbitration.
The landlord rejected this claim and proposal and continued with a request to evict the tenant, believing that the lease had expired due to the expiration of time. The tenant exercised the option effectively for the initial term and the lease was renewed for a further period of five years. The lessor argued that the amount of the lease for the extension period was neither determined nor determined; whereas the relevant provision of the extension clause is `an agreement agreement` and is therefore null and void by reason of indeterminacy; and that the parties were not required to negotiate in good faith or enter into an agreement on an objectively reasonable amount of rent. Look for the original lease and look at it to see when it ends. The most frequent change in case of renewal of the lease is the amount of rent paid per month. Depending on economic conditions, both parties may argue that they are reduced or increased. With respect to the idea that the case should have been referred to an arbitrator, the tribunal noted that an arbitrator „could not make effective the agreements that the parties themselves had not reached and then ask the resisting party to continue the ongoing relationship.” The Tribunal also decided that the tenant could no longer invoke the arbitration clause in any event, since the lease had been terminated by derogating periods. As already mentioned, a lease extension usually reshuffles some details of the contract, but usually uses a previous lease agreement and renews it.
This allows landlords and tenants to bypass red tape or bureaucratic needs, leading to a trouble-free process. In contrast, an extension is an entirely new lease that requires the signatures of both parties. This must be registered again with the authorities and can be a longer and longer process. „While the situation regarding `bona foi agreements` in Australia remains complex in light of the Colliers Coal Cliff, the courts will not enforce an `agreement of understanding`, like other comparable jurisdictions.