The Rent Arrears Repayment Agreement is a crucial document used in South African property management when tenants fall behind on their rental payments but demonstrate willingness to settle their debt. This agreement provides a formal framework for managing rental arrears while maintaining the landlord-tenant relationship. It is designed to comply with South African property law, including the Rental Housing Act and Consumer Protection Act, and can be used for both residential and commercial properties. The document typically includes detailed payment schedules, consequences of default, and provisions for maintaining current rent payments alongside arrears repayment. It serves as a practical alternative to immediate legal action or eviction proceedings, offering a structured approach to debt resolution while protecting both parties' interests.
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1. Parties: Identification of the Landlord/Lessor and Tenant/Lessee with full legal names and details
2. Background: Context of the original lease agreement, the accumulated arrears, and the parties' intention to enter into a repayment arrangement
3. Definitions: Key terms used in the agreement including 'Arrears Amount', 'Repayment Period', 'Regular Rental Payment', etc.
4. Acknowledgment of Debt: Tenant's formal acknowledgment of the arrears amount and confirmation of the calculation
5. Repayment Terms: Detailed structure of the repayment plan including installment amounts, payment dates, and payment method
6. Current Rent Obligations: Confirmation that current rent payments must continue alongside arrears repayments
7. Default Provisions: Consequences of failing to meet the repayment schedule and landlord's remedies
8. General Terms: Standard contractual provisions including entire agreement, amendments, and governing law
1. Interest Charges: Terms regarding interest on the arrears amount, if applicable - used when interest is being charged
2. Security Provisions: Additional security measures such as deposits or guarantees - used when extra security is required
3. Payment Method Specifications: Detailed requirements for payment methods - used when specific payment arrangements are necessary
4. Debt Counseling Declaration: Tenant's declaration regarding debt counseling status - used when required by National Credit Act compliance
5. Early Settlement Terms: Provisions for early repayment of the arrears - used when early settlement options are offered
1. Schedule A - Arrears Calculation: Detailed breakdown of the arrears amount including dates and amounts of missed payments
2. Schedule B - Repayment Schedule: Month-by-month repayment schedule showing installment amounts and dates
3. Schedule C - Original Lease Agreement: Copy or reference to the original lease agreement
4. Appendix 1 - Payment Instructions: Detailed banking or payment information for making repayments
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