When a property is sold, there may be a period of time between the transfer of ownership and the purchaser taking occupation of the property. During this period, the purchaser may occupy the property and pay a fee known as occupational rent to the seller.
Occupational rent is a daily fee that is paid by the purchaser for the use of the property before the transfer of ownership is completed. The amount of occupational rent is typically negotiated between the parties and can be included in the sale agreement.
The liability for paying occupational rent is typically negotiated between the parties and can be included in the sale agreement. Generally, the purchaser is liable to pay occupational rent from the date of occupation until the date of transfer of ownership.
It’s important to note that occupational rent is separate from other costs involved in the property transfer process, such as transfer duty, attorney fees, bond costs, and registration fees.
