Interim Occupancy

Learn what interim occupancy means in Canadian condo purchases, what costs it involves, and how to prepare for this transitional phase before final closing.

Interim Occupancy

May 22, 2025


What is Interim Occupancy?

Interim occupancy is the period in which buyers of new construction condos are allowed to move into their units before the official transfer of ownership, typically while the building awaits registration.

Why Interim Occupancy Matters in Real Estate

In Canadian real estate, especially in urban condo markets, interim occupancy is a standard part of the new construction process. During this phase:
  • Buyers can occupy the unit.
  • Builders retain legal ownership.
  • No mortgage is in effect yet.
  • Buyers pay monthly occupancy fees.

These fees cover the builder’s financing interest, estimated property taxes, and condo maintenance. Importantly, these payments do not contribute to the mortgage principal.

Interim occupancy begins once the unit is deemed habitable by inspectors and ends when the condo building is registered with the local land registry. This can take several months depending on the developer’s administrative timelines.

Buyers should carefully review their purchase agreements and budget for this transitional cost. Since the property title hasn’t transferred, buyers have limited rights, and cannot secure a traditional mortgage until final closing.

Understanding interim occupancy ensures financial preparedness and legal clarity during the transition to full ownership.

Example of Interim Occupancy

A condo buyer moves into their new unit in July and pays occupancy fees until December when the building is registered and title transfers.

Key Takeaways

  • Occupancy begins before title registration.
  • Builder still owns the property.
  • Buyer pays monthly occupancy fees.
  • No mortgage yet in effect.
  • Important for budgeting in new builds.

Related Terms

  • Interim Closing
  • Occupancy Fees
  • New Construction
  • Condo Registration
  • Closing Process

Additional Terms

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

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