[Question] Sale of Property

[Roger15]

Hi there,

Regarding a sale of property and occupational interest(rent), does the seller charge occupational interest(rent) from the date the agreement was signed to transfer date or when the new owners actually move in to the transfer date? Or can it be both?

Thanks

[HR Solutions]

Normally occupational rent is charged if the new owner moves in before the transfer has taken place. But as far as I know you do not charge occupational rent if they have not moved in especially if the bond is not registered.

[Dave A]

Occupational interest is intended to set a rate for the period when one party is in occupation of the property while the other is the owner.

If the purchaser takes occupation prior to the actual transfer of ownership, the purchase will be paying occupational interest to the seller.
If the seller remains in occupation after the actual transfer of ownership, the seller will be paying occupational interest to the purchaser.

Occupation dates should be set out in the offer to purchase / sales agreement, and could be a fixed date or an event, such as "the purchaser takes vacant occupation" - effectively when the purchaser is formally handed over the keys.