In considering the question of quantum, a number of cases have considered whether rental is actually payable due to the state of disrepair of the home or issues with code of compliance costs. Occupational rental would not normally be payable unless there is valuation evidence of market rental including an allowance for a nominal property management fee.
A proper evidential basis would be needed to refute claims or at least limit the extent of any compensation ordered. It is noted that in a number of cases the court had lamented the lack of an evidential foundation.
Where occupational rental is sought in relation to trust owned property occupational rental would not normally be available unless the trustees had made a resolution to that effect. A trust cannot claim occupational rent from a discretionary beneficiary where it has allowed the discretionary beneficiary to have free use of the property and has not revoked that permission.
Similarly beneficiaries of a trust may only bring a derivative action in special circumstances such as where the trustee has unreasonably refused to sue on behalf of the trust or has committed some other breach of his or her duties to the beneficiaries. A beneficiary does not have a right to any defined part of the income or capital of the trust fund. Recent cases have highlighted the difficulties which can arise when occupational rental is sought in respect of trust owned property.
Include properties in neighbouring suburbs Select All Deselect All. Property Types. Priced From. Priced To. Only display properties Web Ref Number Search. Advanced Search. Your quick guide to occupational rent. It's similar to rent, except that you are renting a property either that you used to own, or that you are about to own with a deal or transfer process in place.
Once you've signed on the dotted line to buy the home of your dreams, it's natural to want to move in as quickly as possible. However, the transfer process can take a few months to make the property legally yours, so you could choose to take advantage of an occupational rent clause in the agreement of sale document, which will allow you to move in on an agreed-upon date before the conclusion of transfer formalities.
Essentially, you will be a temporary tenant in the home that is about to become yours. Think of occupational rent as any other property rental. Nothing changes until the day that transfer goes through, and that means that as the "tenant", you are typically responsible for payment of rent as well as water and electricity, while rates, taxes and levies are for the account of the current owner.
The amount payable for occupational rent must be stipulated in the offer to purchase contract, and should be based on the ordinary rental amount that could reasonably be charged for the property. Occupational rent can also work the other way, where the seller of a property continues to live in a property after the date of transfer, and therefore pays occupational rent to the new owner. It is a fully optional clause, and as a seller, you cannot compel a buyer to agree to move in on a particular date and pay occupational rent.
Occupational rent has the potential to benefit both the seller and the buyer. For the seller, it can help with the ongoing bond payments and upkeep of the property, for which he or she is responsible until the date of transfer.
For the buyer, it can remove the need to pay rent elsewhere or, in some situations, to have to move twice. Added 19 minutes ago. Added 20 minutes ago. Property for sale in Gauteng. Property for sale in Western Cape. Property for sale in KwaZulu Natal. Rest of South Africa. Join Our Team. Agent Zone. Download the App.
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