Lessee's right to compensation for improvements

Question 1

What happens in a situation where a lessee has made improvements to the lessor’s property, and then the lease comes to an end?

Answer 1

A claim based on unjustified enrichment can be bought and the rights and remedies are the same as those of the bona fide possessor of property who has effected improvements.

Question 2

What are the requirements of an enrichment action?

Answer 2

1. Owner is enriched
2. Without legal cause
3. At the expense of
4. the lessee, who is impoverished by having expended money/material on the improvements.

Question 3

What are the remedies a lessee has in such circumstances?

Answer 3

1. A claim for compensation
2. Removal
3. Lien.

Question 4

What is the claim for compensation dependent on?

Answer 4

Whether the improvements were:
1. Necessary
2. Useful
3. Luxury.

Question 5

What is the leading authority for a claim for compensation?

Answer 5

Lechoana v Cloete.

Question 5

What is a lien?

Answer 5

A right of retention that a lessee has to stay in occupation of the premises to motivate the lessor to compensate the lessee.

Question 5

What is ius tollendi?

Answer 5

Right to remove the improvements or get an order to this effect.

Question 6

What is the leading case on liens?

Answer 6

Business Aviation v Rand Airport.