The Promissory Note For Late Rental Payment is a crucial document in South African property law, typically employed when tenants fall behind on their rental payments but demonstrate willingness to settle their arrears. This instrument, governed by the Bills of Exchange Act 34 of 1964 and the Rental Housing Act 50 of 1999, provides a legally enforceable solution for documenting and structuring the repayment of rental arrears. It includes essential details such as the exact amount owed, payment schedule, interest rates, and consequences of default. The document serves multiple purposes: it protects the landlord's interests by creating a clear legal obligation, offers tenants a formal pathway to settle their debt, and can help avoid more severe legal actions such as eviction proceedings. It's particularly relevant in both residential and commercial rental contexts where there's a need to formalize payment arrangements for overdue rent.

1. Identification of Parties: Full legal names and details of the maker (tenant) and payee (landlord) of the promissory note

2. Amount of Debt: Clear statement of the total amount owed in numbers and words, including the original rental arrears and any agreed additional charges

3. Promise to Pay: Unconditional promise to pay the specified amount, including the payment schedule and terms

4. Interest Rate: Specification of any applicable interest rate, ensuring compliance with the Prescribed Rate of Interest Act

5. Payment Terms: Detailed payment schedule, including installment amounts, due dates, and payment method

6. Default Provisions: Consequences of missing payments and acceleration clause in case of default

7. Signatures: Space for signatures of all parties and witnesses, with date of execution