Property & Leases

Huur Gaat Voor Koop

Also known as: Lease Goes Before Sale, Hire Overrides Sale.

Quick answer

What is Huur Gaat Voor Koop?

Huur gaat voor koop ("lease goes before sale") is a common-law principle holding that a lease of immovable property binds a subsequent purchaser of the property, who becomes the new lessor on the existing lease terms. The rule protects tenants from eviction following a change in ownership.

Drafted and reviewed by

Martin Kotze

Attorney & Founder, My-Contracts.co.za · Legal Practice Council of South Africa (LPC F17333)

Definition and context

The doctrine of huur gaat voor koop is a pillar of South African property and lease law, inherited from Roman-Dutch law and authoritatively restated in Genna-Wae Properties (Pty) Ltd v Medio-Tronics (Natal) (Pty) Ltd 1995 (2) SA 926 (A). The rule provides that a lease of immovable property survives a sale of the leased property and binds the purchaser, who by operation of law steps into the shoes of the former lessor. The tenant remains entitled to occupy and use the property on the existing lease terms for the remainder of the lease period. The doctrine operates automatically, without need for formal assignment, notice to the tenant or consent by any party.

The rule is subject to limits. For long leases of immovable property (more than ten years, or for life, or in perpetuity), the Formalities in Respect of Leases of Land Act 18 of 1969 and section 1 of the Deeds Registries Act 47 of 1937 require registration against the title deed to bind successors in title beyond the first ten years. An unregistered long lease binds the purchaser only for the first ten years or for such shorter period as the purchaser had actual knowledge of. The "doctrine of notice" extends protection to a purchaser who actually knew of an unregistered long lease: such a purchaser takes subject to the full term. For short leases (ten years and under), no registration is required and the doctrine operates in full.

Commercially, huur gaat voor koop shapes due diligence on property purchases. Purchasers must inspect existing leases, confirm whether they exceed ten years, and price the acquisition on the assumption that all current tenancies continue. Sellers commonly warrant lease schedules and provide estoppel letters. For tenants, the doctrine provides powerful protection against "sale to evict" strategies, complementing the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998 (PIE) and the Rental Housing Act 50 of 1999.

Statutory basis

Where this term lives in law

Deeds Registries Act

Deeds Registries Act 47 of 1937

Sections: 1, 77

Governs the registration of deeds and title over immovable property in South Africa.

Rental Housing Act

Rental Housing Act 50 of 1999

Sections: 5

Regulates the residential rental-housing relationship between landlords and tenants in South Africa.

PIE Act

Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998

Sections: 4, 5

Regulates the eviction of unlawful occupiers and prohibits eviction without a court order.

Common Questions

Frequently asked questions

Does huur gaat voor koop require registration?

No for short leases (ten years or less). Yes for long leases — registration against the title deed is required to bind successors beyond the first ten years, unless the purchaser had actual knowledge under the doctrine of notice.

Can a seller evict a tenant before selling?

Only in accordance with the lease terms and PIE/Rental Housing Act. The seller cannot end the lease simply because of the sale; any eviction remains subject to procedural fairness and court oversight.

Does the purchaser step into all lease obligations?

Yes, prospectively. The purchaser becomes the new lessor for the unexpired term, bound to honour all tenant rights under the lease (repairs, quiet enjoyment, deposit obligations) for the remainder of the term.

What happens to the deposit?

The deposit remains with the original lessor unless it has been transferred to the purchaser in the sale. Best practice is for the deposit to be transferred to the purchaser, who assumes the statutory interest and return obligations.

Does it apply to movable property?

No. The doctrine is specific to immovable property. Leases of movables are governed by the general rules of cession, novation and delegation.

Where it appears

Contract templates using this term

2 templates reference Huur Gaat Voor Koop.

Related terms

Other terms in Property & Leases