| 03 March 2005
Many new homebuyers are confused by the difference between occupation
and possession of their property - and by the provisions in a sale agreement
for the payment of occupational rent.
David Rogers, MD of Homenet, SA's biggest estate agency group, explains
that actual possession, or the change of ownership from the seller to
the buyer, only takes place on the day that the transfer is registered
in the Deeds Office.
However, buyers are often given occupation of their new home before
transfer and this can lead to confusion. "Many sale agreements
make provision for the buyers to take occupation of the property once
their bank has supplied 'guarantees' to the transferring attorney that
the purchase price will be paid.
"But this does not mean that they own the property yet, and in
most instances, they will be required to pay occupational rent to the
sellers for the period between their date of occupation and the actual
date of transfer," he says.
On the other hand, Rogers explains, it sometimes happens that home
sellers need to stay on in the property even after the date of transfer.
"They might be waiting for a new home to be finished, for example,
or want to move only after a work contract or school term has ended.
"And that should not be a problem, provided they have arranged
it with the buyers beforehand, and agreed, in their turn, to pay occupational
rent for the time between the date of transfer and the day they actually
move out."
Whatever the arrangement is, though, the actual date on which the buyer
will be given occupation (as well as the anticipated transfer date),
and the rate of any occupational rental to be paid, should be clearly
written into the sale agreement..
"In addition," says Rogers, "the buyer should not be
allowed to store anything on the property while the seller is still
in occupation, and the seller should not be allowed to leave any belongings
on the property after the buyer has taken occupation.
"The potential for disputes over damage - real or imagined - to
the other party's goods is just too great, and insurance issues also
become very complicated in such circumstances."
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
