The period when your unit is “livable,” but your condo tower is not entirely completed yet, is called the interim occupancy period. Before your pre-construction condo is built, you are not the legal owner but you still may be granted access, by the condo developer, to move into your unit.
INTERIM OCCUPANCY & FINAL CLOSING
Interim occupancy and the final closing are very different. During an interim occupancy period, the ownership of the property is not transferred to the buyer. However, in the final closing, ownership is transferred and the buyer is then the legal owner of the property. It is important to know the difference between interim occupancy and the final closing.
Interim Occupancy vs. Final Closing
- Condo tower construction isn’t fully completed and other units are still being finished off
- Your unit is still regarded as being “livable” and you can move in
- Ownership of unit cannot be transferred to your nameー due to incompletion
- Mortgage payments don’t start (because the real estate developer still owns your unit)
- Still required to pay a fee to the developer on a monthly basis until you are the legal owner of the unit
- You enter “final closing” after you have exited the interim occupancy period
- To exit interim occupancy, the entire condo building construction must completed & officially be registered with the Land Registry Office
- Once you enter the final closing period, title of ownership fully transfers to your name
- Interim occupancy fees will stop
- Mortgage payments commence
INTERIM OCCUPANCY FEES
Although mortgage payments do not commence during the duration of your interim occupancy period, there are still applicable fees to be paid to the developerー who still owns your unit during the interim occupancy period. The shorter the interim period, the better; as soon as the interim period comes to an end, you can start paying/paying off your mortgage payments. Due to the fact that you are not the legal owner of the unit during the interim occupancy period, leasing your unit may be difficult depending on the builder’s policies regarding the situationー they may or may not permit you to do so. There is no set interim occupancy fee as it varies depending on the builder and unit, however, under the condominium act, “any fees you are charged during interim occupancy must be structured in a way that only allows the builder to break even, with any potential profits having to be paid back to you.”