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  • Commercial Property

    Service occupancy agreement

    service occupancy agreement

    Hi guys what do you think the situation legally would be IF

    staff who live on site and have signed a service occupancy agreement and the company didn't collect the rent from them, FYI the company never intended to charge them rent but got them to sign it to cover himself legally.. What do you think the legal standing would be eg would it nullify the contract if the rent wasn't collected ?


    THanks
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    FYI its called  weekly charge and they have to leave when employment ends and it's called a licence to occupy
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    This does sound like a lease which is government by property law. This sounds like a contractual dispute so you need to review the contract you have and exercise what rights you have in there.

    Usually employment based accommodation results in a termination of the right to occupy sometimes with a short gap to allow orderly exit.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    Hi Movieman

    It sounds like you need some sound professional advice from someone to who you show all the documentation.

    Occupation for the better fulfilment of duties is usually covered by a service occupancy agreement and does not necessarily require payment of rent. This would cover, for example, a caretaker/handyman, nanny, cook.  If properly drafted the agreement ends with the employment with the tenant having no rights to remain in the property.

    It is not clear though what you company has actually done here and it sounds like some home made agreements have been used, perhaps a cross between an AST and  service occupancy agreement.  The latter would need to tie in with the employment contract. As I say, best to involve a professional to go through the documents.

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    Thanks for your thoughts to to clarify the staff are not well paid and the owner has the spare room so because it's a care home it's ideal for him to have stuff on site.

     he only drafting the agreement because he wanted to protect  by himself legally and to protect them so he doesn't in  actually wsnt to charge them rent.

    Its indicated in the agreement they lose the right to stay if the employment ends. . 

    So although he has stated that he will charge them rent in the agreement he has never actually collected it because as daft as it sounds he didn't intend for them to pay I guess what I'm trying to understand is that does this nullify the agreement

    A good call to seek professional help I don't think it is straightforward one this one but thought I would run it past the more knowledgeable heads on here as there have been some excellent posters on this Forum in the past
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