03 Jun


Since the enactment of this Act, it seems that a lot of people are left a bit bewildered. I therefore think that it is only appropriate that we dedicate the first few posts to the CPA.

 So for the next couple of posts, expect to be given some enlightening information and tips regarding the CPA and its effect, mostly on the property field.


With the enactment of the Consumer Protection Act 2011(CPA), which came into effect on the 1 April 2011, the landscape regarding fixed term agreements (which generally includes lease agreements) has changed dramatically.

 We urge all OMDW clients, as well as the public at large, who are either landlords or tenants to keep the following in mind when entering into or renewing any lease.

  • Section 14 of the CPA, which deals with the ‘expiry and renewal of fixed term agreements’ applies only to fixed-term agreements entered into by natural persons.
  • Section 14 of the CPA does not apply to fixed term agreements between juristic persons (i.e. between two companies).
  • Fixed term agreements are defined as being agreements providing for a definite duration. The CPA Regulations has set 24 months as being the maximum period.
  • Consumers are now permitted to cancel any fixed term agreement at any time prior to the expiration of the agreement, provided the consumer gives the supplier a 20 business days’ notice of such cancellation.
  •  Upon the expiration of a fixed term agreement, the agreement will automatically continue on a month to month basis, unless the consumer expressly directs the supplier to cancel such agreement on the expiry date.
  • 40-80 days prior to the expiry date, a supplier (i.e. lessor) needs to send the consumer (i.e. lessee) a written notice notifying the consumer of the impending expiration, as well provide the consumer with all material changes that will take place if the agreement is renewed or continues automatically on a month-to-month basis.

For a copy of the more extensive summary on section 14 or for general information regarding fixed term agreements contact our offices (follow the provided links).

1 Comment

Posted by on 03/06/2011 in Content


One response to “CONSUMER PROTECTION ACT: part 1

  1. Meyer de Waal

    22/06/2011 at 4:38 pm

    It appears that an estate agent will have no other option but as to comply with the CPA – rather take precaution early – than cry in court afterwards


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