#VerityAnswers – What is Interim Occupancy?
Interim occupancy is the period of time between the day you occupy your unit (move in) and the day you take ownership (close and get your mortgage). Interim occupancy is the point at which you are forced to move into your new construction condo and pay a fee (called the interim occupancy fee, which is like rent) to the builder. It is “like rent” because you are NOT paying off the principal amount of your mortgage. You do not have a mortgage at this point, which is why you cannot pay it off. The building needs to register for the builder to transfer ownership into your name, at which point you can get a mortgage. The interim occupancy fee that you pay every month is calculated based on how much money you still owe to the developer, plus your maintenance fees and an estimate of your property tax.
There isn’t a specified period of time that interim occupancy lasts and we’ve seen some buildings register in 2-3 months and others take 2 years. This is where the builder’s reputation and past track record comes into play and is worth examining.