TOLATA 1996—occupation rent
TOLATA 1996—occupation rent

The following Family practice note provides comprehensive and up to date legal information covering:

  • TOLATA 1996—occupation rent
  • The court’s powers
  • Case law examples
  • Factors to consider

An order may be made for the payment of an occupation rent where one party leaves a property owned beneficially by both parties and the other remains in occupation enjoying the use of the property. Prior to the enactment of the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996), such issues were determined by the equitable principles of 'equitable accounting' or 'equitable compensation'. In Stack v Dowden, Baroness Hale stated that those equitable principles were replaced by TOLATA 1996, ss 12 and 13. However there are references to those principles and pre-TOLATA 1996 case law in subsequent case law and in Stack v Dowden itself Baroness Hale stated that 'The criteria laid down in the statute [TOLATA 1996] should be applied, rather than the cases decided under the old law, although the results may often be the same'.

The court’s powers

The court has wide-ranging powers where an application is made under TOLATA 1996, see Practice Note: Eligibility to apply under TOLATA 1996—The court's powers. Potential scenarios in which an occupation rent may be payable include:

  1. where one party has vacated the property, the other party remains in occupation and the sale of the property is to be deferred, an occupation rent may potentially be payable for the duration of the deferment, and

  2. where one party has vacated the property, the other party

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