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Interim occupancy: what does it mean?

Wednesday, August 17, 2016 Written by Emmanuelle in General

Some of you may have seen the expression “interim occupancy” recently but without really understanding its meaning.
 When people buy a condo, and may move in it, their home is ”not theirs yet.”
 
At this stage, the buyer is not yet the owner. This is a phase called “interim occupancy”. It “allows a builder to finish construction while also organizing an orderly move-in process for what could be hundreds of buyers.”
 
When a building is declared fit for occupancy by the municipality, condo buyers can start moving in, usually beginning with the lowest floors, as the builder works his or her way up to complete each suite as well as the common elements.”
 
In this case, the buyers can start move in their new home, even though theory are not yet owners.
 
Usually those on the lowest floors shall move first meaning they will have a longer interim occupancy period.
 
There is a price to pay in order to live in your new home before being the owner of it: the interim occupancy fee. It will be charged by the developer or the vendor and will be made up of the following:

  • interest on the unpaid balance of the purchase price of your condo,
  • an estimate on the municipal taxes for your unit,
  • and a projected common expense contribution to keep the building running.”

 
There is no benefit for the builder to extend this “interim occupancy” period. On the contrary it is the best interest of the builder to transfer title as quickly as possible as they make their money at this time.
 
Do you know that if you are willing to buy a new home to a builder you can have your own real estate agent who will be paid by the builder. Don’t miss the opportunity to have a good professional defending actively your interest
, and don’t appoint the builder's agent! Do you want to get the best deal? And don’t worry a builder is always willing to sell.

 

Source: Howard Bogach, first posted in the Toronto Sun on July 4, 2016