How Long Does Interim Occupancy Last in Scarborough?

What Is Interim Occupancy?

Interim occupancy refers to a phase in real estate transactions, particularly in pre-construction condos, where the buyer can move into the unit before officially owning it. This period begins once the builder deems the unit ready for occupancy but before the title is transferred to the buyer during final closing.

For Scarborough residents purchasing pre-construction condos, understanding the timeline and legal implications of interim occupancy is crucial to avoid surprises and protect your interests.

How Long Does Interim Occupancy Last?

The duration of interim occupancy can vary depending on several factors, including the construction schedule and administrative processes. On average, interim occupancy in Scarborough typically lasts:

• 3 to 12 months: For most pre-construction condos, depending on the builder’s progress.

• Longer periods: In cases where construction delays or permit issues arise.

  
  

It’s important to note that during interim occupancy, you don’t yet own the property, but you are responsible for paying interim occupancy fees. These fees can include:

• Interest on the unpaid balance of the purchase price.

• Estimated property taxes.

• Maintenance fees for shared amenities.

Key Differences Between Interim Occupancy and Final Closing

Aspect	Interim Occupancy	Final Closing
Ownership	Buyer occupies the unit but doesn’t own it.	Title is transferred to the buyer.
Payments	Interim occupancy fees are required.	Mortgage payments begin.
Legal Status	Agreement to occupy, not own.	Buyer becomes the legal owner.
Responsibilities	Maintenance and basic upkeep.	Full ownership responsibilities.

Why Is Interim Occupancy Important?

Interim occupancy allows buyers to move into their new homes sooner, but it comes with certain risks and responsibilities. It’s important to review the interim occupancy agreement carefully to avoid unexpected financial obligations or disputes with the builder.

Common Risks During Interim Occupancy

1. Delays in Final Closing: Extended interim occupancy can increase your overall costs.

2. Construction Issues: Incomplete amenities or finishing delays may arise during this phase.

3. Unclear Fee Calculations: Misunderstanding interim occupancy fees can lead to financial stress.

At NLCI Your Real Estate Lawyer Professional Corporation, we ensure Scarborough buyers are fully informed and protected during interim occupancy.

Real-Life Example: How We Helped a Scarborough Client

A client purchased a pre-construction condo in Scarborough and moved in during interim occupancy. They faced unexpected delays in final closing due to construction setbacks, leading to higher interim fees. We reviewed their agreement, identified discrepancies in the builder’s calculations, and successfully negotiated a fee reduction.

This experience highlights the importance of having a trusted lawyer to protect your rights during this phase.

Frequently Asked Questions

Q: Can I make changes to my unit during interim occupancy?A: Typically, no major alterations can be made until after final closing. However, minor changes may be allowed with the builder’s consent.

Q: Do I need to pay property taxes during interim occupancy?A: Interim occupancy fees often include estimated property taxes, but you’re not paying actual property tax until after final closing.

Q: What happens if the final closing is delayed?A: You’ll continue paying interim occupancy fees until the title is transferred. We can help negotiate fair terms in case of delays.

For more answers, visit our Real Estate FAQs.

The NLCI Process for Interim Occupancy

1. Agreement Review: We review your interim occupancy agreement to ensure it protects your interests.

2. Fee Analysis: We confirm the accuracy of occupancy fees and identify any discrepancies.

3. Builder Negotiations: If issues arise, we negotiate directly with the builder to resolve them.

4. Transition to Final Closing: We prepare you for title registration and property ownership.

Contact Your Scarborough Real Estate Lawyer Today

Navigating interim occupancy can be complex, but we’re here to help. At NLCI Your Real Estate Lawyer Professional Corporation, we provide experienced legal guidance to ensure you’re protected throughout the process.

📧 Email: YOURLAWYER@BELLNET.CA 📞 Phone: (416) 292-4667

Call us today or Contact Us to schedule your consultation and get the support you need.