It's morally correct that I occupy a new chalet (7)
I believe the answer is:
ethical
'it's morally correct' is the definition.
(I've seen this before)
'i occupy a new chalet' is the wordplay.
'occupy' means one lot of letters goes inside another (inserted letters occupy or enter the word).
'a new' is an anagram indicator.
'chalet' anagrammed gives 'ethcal'.
'i' put inside 'ethcal' is 'ETHICAL'.
'that' acts as a link.
(Other definitions for ethical that I've seen before include "Relating to morals" , "Morally good or correct" , "Abiding by moral principles" , "Morally correct, in accordance with principles" , "Morally acceptable" .)