Occupational Rent

[yebocan]

Need some assistance. Sold a property, transfer occurring tomorrow. In the past week, received notification from the buyer, that they would like to take occupancy on Monday 1st. This is not possible...As per the communication with the transferring attorneys , a couple of months back , laying out my timeline...as some renovations need to be done at new property, ...by the ****fest of irritation in the last 72hrs, it is clear the attorneys did not communicate this to the buyer...will be able to exit sold property for the latest 2018/10/15...I now get a mail from the estate agent, that the buyer, has resolved their housing emergency and will only move in end of Oct and now wants me to pay full month rental for Oct. Do I just accept and move on or fight for pro-rata...

 

[beefymoocow]

First question will be what does the contract say? If nothing then when the transfer of ownership happens you no longer become the owner.

 

[inanabhay]

How do you know that the transfer is taking place tomorrow?

 

[beefymoocow]

How do you know that the transfer is taking place tomorrow?

Sometimes the lawyers get informed. When I bought the latest house. The lawyers told me a day in advance the transfer was gonna be finalized on a specific day and it did.

 

[yebocan]

First question will be what does the contract say? If nothing then when the transfer of ownership happens you no longer become the owner.

Sets out occupational rent amount and terms ... if seller is still in property post transfer / buyer moves in before transfer. . my issue is that time line was communicated to attorney months ago, and was clearly not communicated to buyer...now to add insult to injury , want to bill a full month..when email in Aug advised that only two weeks will required to do renovations.

 

[yebocan]

How do you know that the transfer is taking place tomorrow?

Was advised by attorneys.

 

[SauRoNZA]

Sets out occupational rent amount and terms ... if seller is still in property post transfer / buyer moves in before transfer. . my issue is that time line was communicated to attorney months ago, and was clearly not communicated to buyer...now to add insult to injury , want to bill a full month..when email in Aug advised that only two weeks will required to do renovations.

“Communicated”?

So basically not in the contract.

Contract ultimately wins.

 

[beefymoocow]

Sets out occupational rent amount and terms ... if seller is still in property post transfer / buyer moves in before transfer. . my issue is that time line was communicated to attorney months ago, and was clearly not communicated to buyer...now to add insult to injury , want to bill a full month..when email in Aug advised that only two weeks will required to do renovations.

So when you signed the contract this communication wasn’t included in the contract. Even if it was communicated these details must be checked and in writing or else it could be the case of he says she says situation.

 

[yebocan]

“Communicated”?

So basically not in the contract.

Contract ultimately wins.

Basically, the attorney acknowledged the receipt of the timeline but did not inform the buyer...nor highlight any concerns nor clashes with contract...I was working on an unopposed timeline...but you right, not in contract and seems will just be another kak experience with attorneys...and put it down as an expensive lesson.

 

[yebocan]

So when you signed the contract this communication wasn’t included in the contract. Even if it was communicated these details must be checked and in writing or else it could be the case of he says she says situation.

Have the email that was send , acknowledged and replied upon...discussing timeline...not a peep nor cautionary.

 

[beefymoocow]

Have the email that was send , acknowledged and replied upon...discussing timeline...not a peep nor cautionary.

Seems like the contract will still stand and pay occupational rent. You could try claim damages from the lawyers but I doubt you will succeed. Cause it’s also negligence on your part and I’m sure there’s some provisio limiting the liability of the lawyers.

 

[yebocan]

Seems like the contract will still stand and pay occupational rent. You could try claim damages from the lawyers but I doubt you will succeed. Cause it’s also negligence on your part and I’m sure there’s some provisio limiting the liability of the lawyers.

Yeah, as I am in the business of doing property transfers for a living ...and assume that those that you pay to handle your affairs , will do so without causing balls ups.

 

[Arthur]

As you know, by statute, contracts for sale or lease of land must be in writing, to which the parties in writing signify their assent. The signed contract is what binds you and buyer. Your subsequent email does not form part of the contract. Seems you'll have to dock up for occupational rent from date of transfer. Court decisions prevent you from unreasonably delaying transfer.

 

[Lupus]

Well technically they can only charge you occupational rent once the property has indeed transferred into their name.

 

[yebocan]

As you know, by statute, contracts for sale or lease of land must be in writing, to which the parties in writing signify their assent. The signed contract is what binds you and buyer. Your subsequent email does not form part of the contract. Seems you'll have to dock up for occupational rent from date of transfer. Court decisions prevent you from unreasonably delaying transfer.

Full month or pro-rata?

 

[beefymoocow]

Full month or pro-rata?

I think it will be more likely to be pro rata but again what’s in the contract. But by default it should be pro rata.

 

[rietrot]

How do you know that the transfer is taking place tomorrow?

Tge lawyers determine and know exactly when the transfer will take place. They lodge it in the deeds office and them if they didn't do anything wrong it takes 10 days.

 

[yebocan]

I think it will be more likely to be pro rata but again what’s in the contract. But by default it should be pro rata.

Thanks, ...sorry for being snappy a couple of posts up...just so over this already.

 

[rietrot]

Full month or pro-rata?

For the exact amount of days between the transfer taking place and you moving out.

 

[beefymoocow]

Thanks, ...sorry for being snappy a couple of posts up...just so over this already.

I don’t think you are losing out that badly. It’s likely gonna be pro rata and now you gonna get your money sooner. If you can put it in an interest bearing account you should get about 7% a year so that should offset your occupational rent.