Real Estate

Completion Date and Interim Occupancy

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  • Jul 8th, 2021 3:57 am
Deal Addict
Oct 8, 2015
4282 posts
4638 upvotes
Province of Bring Ca…

Completion Date and Interim Occupancy

My apologies for many questions as purchasing a presale condo unit is way way more complicated that I throught, and I kind of regret making this decision 4 years ago when I just moved to Canada.

My condo is about to close but when I google for the procedure, a new term "interim occupancy" pops out and seems very scary (to me). From what I understand, interim occupancy is like renting the unit from the developer because I haven't legally owned it so I will still be paying the mortgage interest + strata fee + other fees during the period, and worst case it may last many years.

So on the latest notice from my developer, they're telling me the "completion date" is some day in Augest. Does that mean the start of "interim occupancy", or by that day I will be legally own the unit? Is Closing and Completion referring to the same process? And normally will there be any other fee that will surprise me (in a bad way) during completion?

I'm in BC. Thank you very much!
2 replies
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
You should have an occupancy date and a final closing date. Look over your purchase agreement for the dates. Now, these dates can change but your developer notifies you. You should contact your developer to see if they're on schedule.

Typically, interim occupancy lasts anywhere from a month to years. It really doesn't last years though unless your developer is inept. It's usually 6 months or so. Also the lgnth of interim occupancy depends on where your unit is. If it's on a lower floor it's likely one of the first units to occupy. You then have to wait for the rest of the building to be finished. So your length of occupancy depends on that. If your unit is on a high floor, your occupancy wont' last that long as you're nearing the completion of the building.

Keep in mind closing doesn't necessarily mean the building is completely finished. Depending on the builder, the common areas and amenities may still be under construction.

Hope that helps. Plenty of info on this online.
Deal Addict
Nov 13, 2013
4525 posts
3687 upvotes
Ottawa
naticom wrote: My apologies for many questions as purchasing a presale condo unit is way way more complicated that I throught, and I kind of regret making this decision 4 years ago when I just moved to Canada.

My condo is about to close but when I google for the procedure, a new term "interim occupancy" pops out and seems very scary (to me). From what I understand, interim occupancy is like renting the unit from the developer because I haven't legally owned it so I will still be paying the mortgage interest + strata fee + other fees during the period, and worst case it may last many years.

So on the latest notice from my developer, they're telling me the "completion date" is some day in Augest. Does that mean the start of "interim occupancy", or by that day I will be legally own the unit? Is Closing and Completion referring to the same process? And normally will there be any other fee that will surprise me (in a bad way) during completion?

I'm in BC. Thank you very much!
Closing and completion are different. You can't close until the Strata Corp is formed. In a skyscraper this might take 6 months or more. Yes people call it renting but really you are paying only the interest and fees as you would as an owner. Essentially you are paying an interest only loan. The builder also wants you to close as soon as possible as their construction loan is almost certainly twice or more what you are paying them.

If you bought 4 years ago you should have made a nice return on your investment and be happy. Enjoy your new apartment!

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