Interim Closing
Learn what interim closing means in Canadian real estate, why it applies to new builds, and how buyers should prepare for this transitional phase.
May 22, 2025
What is Interim Closing?
Interim closing is a temporary stage in new construction purchases where the buyer takes possession of the property before full ownership is legally transferred.
Why Interim Closing Matters in Real Estate
In Canadian pre-construction real estate, especially condos, interim closing occurs when the unit is ready for occupancy but final registration of title hasn't happened yet.
During this period:- The buyer can move in.
- The builder retains legal ownership.
- The buyer pays an occupancy fee (not mortgage payments).
- Interest on the unpaid balance
- Estimated property taxes
- Maintenance fees (if applicable)
This stage can last several months depending on the building’s registration timeline. It doesn’t reduce the purchase price or count toward the mortgage principal.
Buyers should budget for interim occupancy costs and understand their rights and responsibilities. Legal review of the purchase agreement is strongly advised to avoid confusion during this phase.
Interim closing allows developers to manage occupancy in large projects while completing administrative requirements like land registration and condo board formation.
Example of Interim Closing
A condo buyer in Toronto moves into their unit in April but doesn’t receive title ownership until October due to interim closing. They pay monthly occupancy fees during that period.
Key Takeaways
Related Terms
- Interim Occupancy
- New Construction
- Occupancy Fee
- Condo Registration
- Closing Date
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)