Does the Consumer Protection Act Apply to Private Residential Leases? Els v Venter Explained

 

Written by Roy Bregman, admitted attorney with over 51 years’ experience in consumer, property and housing law.

Does the Consumer Protection Act Apply to My Residential Lease?

The case of Els v Venter and Another (SCA 2025) considered whether the Consumer Protection Act 68 of 2008 (CPA) applies to once-off, private residential lease agreements and the procedural requirements for eviction under South African law.

Key Takeaways

The Supreme Court of Appeal (SCA) had to consider whether a residential lease of a family home, concluded as a temporary arrangement by private owners, falls within the ambit of the CPA, and how this interacts with eviction protections under the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act 19 of 1998 (PIE). 

If a private owner leases out a property on a once-off basis and is not in the business of leasing, the CPA does not regulate the agreement or provide the tenant with additional protections regarding lease duration or termination. 

Contractual termination clauses in private leases are enforceable.

Even where termination of a lease is contractually valid, a landlord cannot obtain an eviction order without complying with the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act (PIE).

The judgment draws a clear boundary: the CPA regulates commercial leasing activity, while private residential leases remain governed by contract law, with evictions strictly controlled by PIE.​

What Did the Court Decide in Els v Venter?

The SCA delivered judgment in an appeal from the Western Cape High Court. The appeal was mostly dismissed, except that the High Court’s order forcing the tenant (Mr Johann Els) to vacate the property was set aside.

Facts of the case

The parties were private individuals: The Venters, after moving to Australia, leased their family home to Els on a renewed residential agreement with a clause permitting termination on three months’ written notice if the owners decided to sell.

The dispute arose when the Venters exercised the termination clause to sell the property. Els claimed CPA protections as a tenant under a fixed-term lease arguing the principle huur gaat voor koop (a lease survives a sale).

High Court Decision

The High Court agreed with the owners, held the CPA did not apply, and ordered Els to vacate. Els appealed.

Summary of the SCA Judgment

The SCA was asked to decide if such a lease was a fixed-term “consumer agreement” in the “ordinary course of business” and whether an order compelling the tenant to vacate was permissible without following PIE.

At the heart of the case lay three key issues: the statutory meaning of “transaction” and “rental” under the CPA; the scope of section 14 on fixed-term agreements; and the limits on granting eviction-type relief without compliance with PIE’s just and equitable process. The SCA’s answer draws an important line between commercial rental activity subject to the CPA and private, once-off leasing of a family home pending sale.​

The SCA’s analysis turned on the CPA definitions of “transaction” and “rental”, both of which require that the supplier acts “in the ordinary course of business” and is engaged in the continuing marketing and supply of services. For a lease to qualify as a “rental” under the Act, the lessor must carry on a business of letting property and routinely market rental services to consumers; a single lease for consideration is not enough.

The SCA held that the CPA did not apply to the lease because the Act regulates rental agreements only where the landlord is acting “in the ordinary course of business.” For a lease to qualify as a “rental” or “consumer agreement” under the CPA, the lessor must be engaged in the ongoing business of letting property and must routinely market or supply rental services to consumers.

In this case, the Court found that the owners were not suppliers operating a rental business but private individuals who had let their family home temporarily while arranging its sale. As the lease was a once-off, private arrangement and not part of any business activity, it fell outside the CPA.

Practical Implications for Landlords and Tenants

The judgment in Els v Venter and Another confirms that the CPA regulates commercial leasing by landlords in the business of letting property, not once-off residential leases of a family home concluded as a temporary measure pending sale. Tenants in such private arrangements cannot rely on the CPA’s fixed-term protections to displace clear termination clauses where the Act does not apply.

At the same time, the decision reinforces that even a valid contractual termination does not authorise eviction without compliance with PIE and its just and equitable safeguards. For landlords and tenants alike, the case provides certainty on when the CPA bites and underlines the central role PIE continues to play in protecting occupiers of residential property.

FAQs

Does the CPA always apply to residential leases?

No. The CPA generally applies only where the landlord is in the business of letting property and continually markets rental services, not to once-off private leases of a family home. All 

Can a landlord terminate a fixed-term lease on notice if the CPA does not apply?

Yes, provided the lease contractually allows such termination and there is no other legal bar; section 14 of the CPA cannot be used to override a valid termination clause in a private lease outside the Act. 

If my lease is validly terminated, can the landlord evict me without following PIE?

No. Even after lawful termination, any eviction from residential premises must comply with PIE, and a court must decide whether eviction is just and equitable. 

How do I know if my landlord is acting “in the ordinary course of business”?
Relevant indicators include whether the landlord owns multiple rental properties, advertises rentals to the public, and routinely lets properties for profit, as opposed to a once-off letting of a personal home pending sale or emigration. 

If you are a landlord or tenant facing a dispute about a residential lease, CPA rights or an eviction, you should obtain timely legal advice before acting. Contact Bregman Moodley Attorneys to review your lease, assess whether the CPA or PIE applies, and help you navigate your next steps confidently and lawfully.