Occupancy & Closings – New Condo FAQ’s
What is the Interim Occupancy Period?
After a condominium is substantially completed by its builder, Ontario law allows the builder to have the condo units occupied by the buyers while the builder applies for the registration of the condominium corporation and the municipality inspects the building . This is called the interim occupancy period. During this period, the buyer pays occupancy fees while occupying the unit but these fees will not be credited as payments of the purchase price.
The interim occupancy period is completed when the condominium corporation is registered and the individual unit titles can then be transferred to the buyers. This second stage is called the final closing and also marks the start when condo buyer’s mortgage takes effect.
The tentative occupancy date will be set out in the document called Statement of Critical Dates that is attached to the APS. There are consequences for the builder when it fails to meet the dates.
This question was answered by Shaffiq Dar (Real Estate Lawyer)
What closing costs do I need to be aware of when purchasing Pre-Construction Condos?
When you buy pre-construction, there are some additional closing costs that are not part of the unit purchase price. These additional closing costs may include the following:
- Development and educational levies
- TARION warranty enrolment fee
- Miscellaneous fees such as Law Society transaction levy, discharge fee, deposit administration fee, tree planting, etc.
- Occupancy FeesCommon expenses
- HST
- Land Transfer Taxes
- Utility connection charges
- Property taxes
- Occupancy fees
- Contribution to reserve fund
The good news is that you can have these closing costs ‘capped’ at the time of signing the APS. Once your lawyer or real estate agent has reviewed the APS and you have an idea of what the closing costs will be, you can negotiate a cap on the closing costs, allowing you to plan ahead and budget for them.
This question was answered by Shaffiq Dar (Real Estate Lawyer)
