Understanding Occupancy Dates
There are situations when construction may be delayed and buyers may not be able to take occupancy as set out in the purchase agreement.
The Statement of Critical Dates can be helpful here, as it contains several important milestones:
- The Firm Occupancy Date — is the date the condominium unit will be completed. This date is agreed upon by the builder and the buyer.
- The Outside Occupancy Date — if the builder fails to meet the Firm Occupancy Date, they must set what is referred to as an outside occupancy date or outside closing date.
If the builder does not meet the Firm Occupancy Date, the buyer may be entitled to receive delayed occupancy coverage from Tarion. If the builder fails to meet the outside occupancy date, the buyer may choose to terminate the purchase within 30 days.
Visit Tarion’s page for more information.
Interim occupancy occurs in pre-construction condo projects when the builder lets the buyer take occupancy of the condo unit before the declaration has been registered and the title can be transferred to the buyer. During interim occupancy, a buyer cannot make mortgage payments until the condo corporation is registered with the Land Registry Office. The builder will advise buyers of their interim occupancy date as the condo building nears completion. On the interim occupancy date, buyers take occupancy of their condo unit, but they do not own it yet. Ownership of the condo unit can only be transferred once the condo corporation has been registered with the Land Registry Office.
During the interim occupancy period, the buyer will be required to pay the builder an interim occupancy fee, regardless of whether they move into the condo unit or not. The interim occupancy fee cannot be more than the total of:
- The interest (calculated monthly) on the unpaid balance of the purchase price at the prescribed interest rate
- The estimated monthly municipal taxes for the condo unit
- The projected common expenses fees for the condo unit