Campbell Property Group Logo
You are here: Campbell Property Group / Latest News / Occupational Rent Explained

Occupational Rent Explained.

SHOWING ARTICLE 28 OF 33
GALLERY

Occupational Rent Explained.

Category News
Occupational rent is a concept that most buyers and sellers have some idea about - but they are not always certain of the finer details.
 
Who pays the rent to whom? How is this rent calculated? And when does it become payable?
The amount is agreed upon in the agreement of sale, and is usually equal to the amount the property can be let for.
 
The occupational rent clause in an agreement of sale is to make sure that the seller is financially compensated if the buyer moves into a property before registration and transfer occurs. It can also protect the buyer if the seller stays on in the property after transfer.
"Where the occupation date is stipulated then occupational rental is a must. This is to ensure that the party enjoying occupation of the property, while not being the registered owner, pays an appropriate amount to the registered owner.
 
If the seller is unable to move out by that date he or she is liable to pay occupational rent from the day after transfer.
Occupational rent is pro-rata based on the number of days in occupation.
The conveyancing attorneys may assist again by deducting the pro-rata occupational rent from proceeds of sale.
Author Campbell Property Group
Published 15 Aug 2022 / Views -
Disclaimer:  While every effort will be made to ensure that the information contained within the Campbell Property Group website is accurate and up to date, Campbell Property Group makes no warranty, representation or undertaking whether expressed or implied, nor do we assume any legal liability, whether direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information. Prospective purchasers and tenants should make their own enquiries to verify the information contained herein.