What is Occupation Rent?
Occupation rent is a payment that one person may have to make when they live in a home that they co-own with someone else, but the other owner is not living there. Often, this happens when a couple separates, and one person stays in the home while the other moves out or is forced out of the home. The person staying in the home may be asked to pay occupation rent to the other owner as compensation for having full use of the property.
A court can order occupation rent in certain situations, such as when the person living in the home is preventing the other owner from accessing it, or if it would be unfair for one person to have full use of the property without contributing to the other’s financial loss. The amount of rent is usually based on factors like the home’s value, the financial situation of both parties, and whether there are children living in the home.
Recent Cases
This issue came up in Non Chhom v. Green, 2023 ONCA 692, where the wife appealed a trial decision that included an order for occupation rent. She had been living in the matrimonial home alone since 2017, and at trial, the judge ordered that the home be sold, with the proceeds held in court until further agreement or court order. She was allowed to stay in the home until March 2023, but she also had to pay her husband $31,500 in occupation rent.
On appeal, she argued that the occupation rent order was unfair, but the Court disagreed. It confirmed that occupation rent isn’t something rare or exceptional—it just has to be reasonable. Since the trial judge had considered all the relevant factors, the appeal was dismissed, and the original decision stood. The case relied on the earlier case Griffiths v. Zambosco, 2001 CanLII 24097 (ON CA) and confirmed the factors to consider when Ordering occupation rent.
Are you entitled to Occupation Rent?
If you have questions about occupation rent or whether it may apply in your situation, we’re here to help. Contact our office to speak with a lawyer who can explain your options and guide you through next steps.