Occupational Rent

[S1ght]

Hi all,

So I'm looking at buying my first place a in a new development and I was hoping someone here could help enlighten me on the whole occupational rent story. I know the basics of it are that if I move in before the deed is in my name, I will then pay occupational rent but here are my questions:

1. Are they allowed to stipulate a date that I have to be moved in by?
2. If so, what guarantee do I have that I won't sit for months waiting for the deed to be transferred and then end up paying a good chunk to occupational rent?

Thanks in advance,
Michael

 

[Maverick Jester]

Why can you not simply delay moving in until the deed has been transferred onto your name? Just asking...

Anyway, perhaps these might be of use to you:

http://www.property24.com/articles/how-long-must-i-pay-occupational-rent/17081

http://www.property24.com/articles/analysing-occupational-rent/9539

EDIT: Sorry, didn't answer your questions...

1. Are they allowed to stipulate a date that I have to be moved in by? No, the property is yours once the deed is in your name. This is my understanding of the situation, so I may be wrong.
2. If so, what guarantee do I have that I won't sit for months waiting for the deed to be transferred and then end up paying a good chunk to occupational rent? If you commence occupation of the property prior to the deed being transferred onto your name, you have no guarantee of a due date. But check out the links that I have provided, it might be of use.

 

[S1ght]

Why can you not simply delay moving in until the deed has been transferred onto your name? Just asking...

Well that's actually my main point. Can the developers set a date as to when the latest I can move in by? Personally I'd rather just wait till it's in my name but I see on this form for the apartment they have specified :

"Occupation date to be : …………….………………(latest 30th August 2013)"

And I'd like to know if that's something that I can fight back on and tell them no I'll wait till the deed is in my name or can they actually enforce a date on me as part of the conditions of sale?

 

[Maverick Jester]

Well that's actually my main point. Can the developers set a date as to when the latest I can move in by? Personally I'd rather just wait till it's in my name but I see on this form for the apartment they have specified :

"Occupation date to be : …………….………………(latest 30th August 2013)"

And I'd like to know if that's something that I can fight back on and tell them no I'll wait till the deed is in my name or can they actually enforce a date on me as part of the conditions of sale?

Then no, they cannot force you, and nor should you pay occupational rent, given that the property is in your name...

 

[The_Ogre]

I take it this is one of those Plot and Plan jobbies? If so and you took out the bond, they will go out of their way to build it as quick as possible because the bank will only pay them the last of the total amount once you've inspected the place and sign that you are happy. You pretty much dictate the pace. But like I said, that's how the plot and plan places work.

 

[S1ght]

I take it this is one of those Plot and Plan jobbies? If so and you took out the bond, they will go out of their way to build it as quick as possible because the bank will only pay them the last of the total amount once you've inspected the place and sign that you are happy. You pretty much dictate the pace. But like I said, that's how the plot and plan places work.

Nop, this 1 is built already I went to quite a few "show houses" that was just showing their plans to build and I don't like that approach. I like to actually see what I'm signing the next x amount of years of my life away to

 

[ToxicBunny]

No they cannot force you to move in prior to the deed being in your name.

 

[S1ght]

Thanks guys. Gonna see if I can get some clarity from the agent as to why they want to specify a date and if I cannot just make it that I'll wait till the transfer has been completed.

Edit: So a short email later and apparently it's all good to just do occupation on transfer so I guess that's 1 less worry