Occupational Rent

[Superjakes]

I am in the process (since f'ken beginning of November) of purchasing a new property. It was linked to the sale of my existing property from the beginning. Everything processed beautifully except for my buyer that was dragging her feet (IMHO). Now we have reached a point where my documents for the sale of my property have been lodged with the deeds office, but the property I am buying has not yet, as a payment still needs to be made to the municipality to get the needed receipt.

Long story short - the property I am selling will likely be registered on the new owners name before the one I am buying will be registered on mine, leaving me in a position to pay occupational rent on either the new or the old house, dependent on where I am. Apart from begging the seller for the keys to the new place, how do I get past this. Also, if I agree on occupational rent, what stops the owner from delaying the process in order to have me pay more occupational rent before registration? I know I am being paranoid, but I want to know what the worst case is.

Thanks!

 

[ScottulusMaximus]

Your "long story short" is longer than your long story.

 

[Superjakes]

Imagine how long it would have been if I had kept on rambling instead of getting to the point...

Thanks for the observation, though. Now you owe me advice from your extensive experience?

 

[joker08]

I would have rented some place in the meantime. Yes it will be a logistical nightmare but will take the pressure off

 

[binloud]

What does your offer to purchase say about occupation date? Other than that give the lawyers a call sometimes they can apply pressure or gently ask the new owner to allow you to occupy without rent. Thats what I did in my case, asked nicely and lawyers applied some pressure. Allowed the previous owner to vacate without a full clean etc. Always try the nice route first IMO. Remember its in the lawyers best interest to get it done, they don't get paid until the transfer is complete.

 

[Barbarian Conan]

The owner has to pay levies, rates & taxes and the bond until the place is registered in your name, so they don't want to drag it out too long. OR will usually be just enough to cover those.
On the flip side, since they will have a bond for a lesser amount than you have, it should be cheaper for you to pay OR than to pay your bond and all the rest.

 

[isie]

I am in the process (since f'ken beginning of November) of purchasing a new property. It was linked to the sale of my existing property from the beginning. Everything processed beautifully except for my buyer that was dragging her feet (IMHO). Now we have reached a point where my documents for the sale of my property have been lodged with the deeds office, but the property I am buying has not yet, as a payment still needs to be made to the municipality to get the needed receipt.

Long story short - the property I am selling will likely be registered on the new owners name before the one I am buying will be registered on mine, leaving me in a position to pay occupational rent on either the new or the old house, dependent on where I am. Apart from begging the seller for the keys to the new place, how do I get past this. Also, if I agree on occupational rent, what stops the owner from delaying the process in order to have me pay more occupational rent before registration? I know I am being paranoid, but I want to know what the worst case is.

Thanks!

Occupational rent will be based on what you agreed on your OTP.
Also how exactly is the seller dragging their feet?

 

[Steamy Tom]

they are meant to link the registrations at the deeds office...

 

[Superjakes]

Occupational rent will be based on what you agreed on your OTP.
Also how exactly is the seller dragging their feet?

Sorry for only responding now. My concern was that there were discrepancies with the numbers received from the municipality, I was uncertain about the incentive that the seller has to clear those.

As of yesterday, everything was clarified and paid, we are just awaiting the receipt from the municipality, then the lodgement will commence.

The buyer was dragging her feet, as I had explicitly stated - if not for her, my registration could have been completed before year end already. She waited until literally the last day to go and sign the contracts, etc...

 

[isie]

Sorry for only responding now. My concern was that there were discrepancies with the numbers received from the municipality, I was uncertain about the incentive that the seller has to clear those.

As of yesterday, everything was clarified and paid, we are just awaiting the receipt from the municipality, then the lodgement will commence.

The buyer was dragging her feet, as I had explicitly stated - if not for her, my registration could have been completed before year end already. She waited until literally the last day to go and sign the contracts, etc...

Ok cool - just seems odd for her to drag her feet as she will not her money
any way glad she signed now just the deeds office ?

 

[Superjakes]

Ok cool - just seems odd for her to drag her feet as she will not her money
any way glad she signed now just the deeds office ?

Yep - moving in this weekend, got the keys this morning...

 

[Pineapple Smurf]

when i bought a house in 2000 the owner took his time moving out and had to pay me 1% of the value of the house per month in occupational rent.