It is important for tenants to understand the information contained in rental leases as prescribed in the Consumer Protection Act.
Q: Have just signed a rental lease and paid the required deposit. Less than 48 hours later, I found out that my work load will be reduced, as a result, will not be able to pay the monthly rental as per the lease. Can we get our deposit back as we have not yet moved into the property?
A: Marlon Shevelew, partner at Marlon Shevelew & Associates says assuming the lease was signed post the Consumer Protection Act, meaning after 1 April 2011, the tenant can cancel the lease on a five business days’ notice, if they entered the lease as a result of direct marketing.
If the signing of the lease was not as a result of direct marketing, there is no right of cancellation on such short notice.
At best, the tenant would have a right to cancel on 20 business days’ notice and subject to a reasonable cancellation fee. A deposit, says Shevelew, would be the minimal amount the landlord could retain as a penalty, if not more.
He adds that the rights of landlords and tenants are embodied in the Rental Housing Act and the Unfair Practise Regulations.
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