The Surprise Many Buyers Miss: Tenants Who Stay After Transfer

Buying a property is an exciting milestone... until you realise the current tenant has no plans to leave.

It is a scenario that catches many buyers off guard, especially those purchasing a home they intend to live in. But the situation is more common than people think, and the key to handling it well is understanding the rules before you sign.

The most important principle to know is simple: a lease survives a sale.

In South African law, this is known as huur gaat voor koop, and it means that if a tenant has a valid lease agreement in place, they have the right to stay until that lease ends, even if ownership of the property changes. The new owner steps into the shoes of the landlord, with all the responsibilities that come with it.

For buyers, this is where clarity becomes critical. Before committing to an offer, ask for the lease agreement, payment history, and confirmation of whether the tenant is in good standing. A well-behaved, rent-paying tenant can be an asset. A tenant in arrears or in breach of their lease can quickly become a challenge.

If a tenant is not paying rent or violating the lease terms, the new owner does have options, but these must follow the correct legal process. Cancelling a lease or pursuing eviction is not something that can be done informally or hurriedly. Evictions must comply with the Prevention of Illegal Eviction Act (PIE), and the courts will always consider fairness, procedure, and reasonable notice before granting an order. That means timelines can extend longer than many buyers expect.

This is why the agreement of sale matters so much. Buyers who want vacant occupation should ensure this requirement is written into the contract. If the seller cannot provide vacant occupation, the agreement can specify occupational rent, penalty clauses, or other protections that prevent financial strain if the transfer happens before the property is empty.

For investors, tenants who stay on after transfer are often part of the plan. For owner-occupiers, however, the experience can be disruptive. In both cases, due diligence is the safest way to avoid surprises.

Clear communication, proper documentation, and a realistic timeline can turn a stressful situation into a manageable one. 

With the right guidance, buyers can protect both their investment and their peace of mind, even when a tenant is part of the deal.