In a significant ruling, the High Court of Zimbabwe has declared sections 22 and 23 of the Commercial Premises (Rent) Regulations 1983 to be ultra vires the Commercial Premises (Lease Control) Act and set them aside. This ruling marks a dramatic shift in the realm of commercial property rentals, as tenants are no longer protected from eviction after their lease agreements have expired.
The Commercial Premises (Rent) Regulations 1983 previously protected tenants from eviction through sections 22 and 23. These sections authorized tenants to continue using the premises after the expiration of their lease agreements, as long as they were abiding by the terms and conditions of the expired leases. However, High Court Judge Justice Webster Chinamhora declared these provisions to be unfair and placed heavy restrictions on the rights of property owners.
Justice Chinamhora explained that sections 22 and 23 of the regulations created a forced relationship between the tenant and the property owner, known as a statutory tenancy. This relationship limited the powers of the court to order an eviction, effectively preventing property owners from increasing rent or leasing the property to another person once the statutory tenancy protection applied.
The ruling was a result of a legal dispute between Harare-based company Elnour United Engineering Group and Industry and Commerce Minister Sekai Nzenza. Elnour United, which owns Gulf Complex and Sunshine Bazaar in the Harare central business district and Mbare, argued that the regulations went beyond the powers of the Commercial Premises Act.
With this ruling, commercial property rentals face a major shift as property owners gain more control and tenants face the possibility of eviction with no legal protection. The impact of this decision on the industry remains to be seen, but it is clear that the balance of power between property owners and tenants has been altered.
Here at Zimpricecheck we will continue to monitor developments in the commercial property rental industry and provide in-depth analysis and commentary on the future implications of this landmark ruling.
The High Court ruling on the Commercial Premises (Rent) Regulations 1983 marks a significant shift in the world of commercial property rentals. Tenants are no longer protected from eviction after their lease agreements have expired, giving property owners greater control. The impact of this decision remains to be seen, but it is clear that the balance of power between property owners and tenants has been altered. The Economist will continue to provide analysis and commentary on the future of this rapidly evolving industry.
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