Occupation rent is the legal term given to the compensation that is owed by someone who lives in a property without authority. This was canvassed by Justice Karakatsanis in the 2004 decision of Dagarsho Holdings Limited v. Bluestone. The judge held that occupation rent is an equitable remedy, in other words, it is a fairness rule that the courts have at their at their disposal. If someone lives in a property without a lease, and even though there is no landlord and tenant relationship, the courts will imply a contract for rent to the landlord at a reasonable amount for the use and occupation of the landlord’s property. This principle is based upon the presumption that the parties have agreed to reasonable compensation. One can cancel that presumption if evidence exists. Occupation rent is also an appropriate measure of damages for trespass and unjust enrichment.
This is an equitable remedy that the courts can apply. It is a claim an executor can make when dealing with the problem adult child continuing to live in the family home.
So a common scenario for Will and Estate Lawyers, is an adult child, often a little excentric or dysfunctional who has lived with a parent for many years in the family home rent free. The parent dies and the problem child continues to occupy the home with no legal right to do so. There is no lease . What can the executor or estate trustee do? Well they come to us as Estate Litigation Lawyers. The executor realizes it is very difficult to sell a home with someone living in it. Well the claim, a part of estate litigation, is to ask for a writ of possession and additionally to ask that the problem child pay the estate occupation rent for the time they lived in the home.
