Deeds Review - Before you hand over your keys read this

Many of the items mentioned in last month?s column is also important for you as the Seller to take note of; what is the purchase price, when does the offer expire, what is the commission amount, what are your breach of contract penalties and is your fabulous antique chandelier listed as an item which you definitely will be removing from your home.

However, there is one clause that is arguably the most important for you to read and take note of and that is the occupational rent clause. The new owner of your property may take occupation of it either on transfer of the property in the Deeds Office or on a date of occupation specified in your OTP. When an occupation date is included in an OTP occupational rent becomes applicable (unless you are an incredibly nice person who is not at all money driven). Occupational rent is rent payable to the owner of the property either prior or post registration thereof.

Here is how it works.

You may move out of your property before it has been registered in the new owner?s name, thus leaving your home empty. If you choose to hand over your keys to the new owner, you are making the symbolic gesture that transfer of possession has now taken place and they are free to occupy the property.

Before handing over your keys please ensure that the date on which this will occur is in your OTP, together with the rental amount and who will be responsible for the rates, taxes and levies (if the property is in a sectional title scheme). If you are certain occupational rent will not be necessary then the date of occupation can be made the date of transfer.

Transfers do occasionally take longer than planned, if this happens and you do find yourself wanting to give your purchaser early occupation please approach your conveyancer to draft an addendum to your OTP outlining the occupational rent and make sure it is signed BEFORE handing over your keys.

If you plan to stay in your home after registration has taken place, you will become liable for the payment of occupational rent to the new owner.

Happy house hunting, and remember if you would like any further information regarding your next offer to purchase, or any conveyancing enquiries speak to us CBA at Office No 1, The Circle Business Centre, Douglas Crowe Drive, Ballito, or call 032 946 5919 or email info@cbainc.co.za. We are happy to ensure your occupational rent clause is in order.