Els v Venter and Another

The respondents, a married couple, owned a residential property in Stellenbosch which had been their family home before they relocated to Australia in 2018. Unsure whether the move would be permanent, they rented out the property to the appellant under a three-year lease ending in December 2023. In August 2023, after deciding to settle permanently in Australia and to sell the property, the parties concluded a second written lease for a further three years commencing January 2024. This second lease expressly allowed the respondents to terminate on three months’ written notice. The property was sold in December 2023 with vacant possession due on 1 April 2024. The respondents gave notice terminating the lease with effect from 31 March 2024. Although the appellant initially accepted the validity of the termination, he later contended that the lease was protected by the Consumer Protection Act 68 of 2008 (CPA) as a fixed-term consumer agreement, and that it could not be terminated without a material breach. The respondents approached the High Court for declaratory relief and an order that the appellant vacate. The High Court held that the CPA did not apply, upheld the termination, and ordered the appellant to vacate by 31 March 2024. The appellant appealed to the Supreme Court of Appeal.

The appeal succeeded in part. Paragraph 49(iv) of the High Court’s order directing the appellant to vacate the property by 31 March 2024 was set aside. The remainder of the appeal was dismissed, and the appellant was ordered to pay costs on the attorney and own client scale.

The judgment provides authoritative guidance on the application of the Consumer Protection Act to residential lease agreements, clarifying that the CPA applies only where leasing occurs in the ordinary course of the lessor’s business. It confirms that private, once-off or incidental leases by homeowners fall outside the Act. The case also reaffirms that courts may not grant de facto eviction orders without compliance with the PIE Act, even where a lease has been validly terminated.