What is interim occupancy in an Ontario condo?
Interim occupancy is the period when the builder lets you move into a new condominium unit before the condominium corporation is registered and title can transfer. You can live in the unit, but you do not own it yet. Legally and financially, that distinction matters.
During this period, you pay the builder a monthly occupancy fee. Your mortgage normally begins at final closing, not on the day you receive the keys. Tarion’s guide to interim occupancy explains the difference between taking possession and becoming the registered owner.
How is the occupancy fee calculated?
Section 80 of Ontario’s Condominium Act limits the fee to three components:
- ▸Interest on the unpaid balance of the purchase price at the prescribed rate
- ▸The estimated monthly common expenses for the unit
- ▸The estimated monthly realty taxes attributable to the unit
The fee is not rent in the usual market sense, and it does not reduce your purchase price or build equity. Ask the builder for a written estimate before occupancy and have your lawyer check the calculation.
How long can interim occupancy last?
There is no single duration for every building. Registration requires legal and municipal steps after construction reaches the necessary stage. A period of several months is common, but longer periods can occur.
Your agreement’s Tarion addendum identifies key dates and delay rights. Review Tarion’s current occupancy dates, delays and cancellations guidance rather than relying on a sales estimate.
What should buyers plan for?
Carry enough cash for the occupancy fee while maintaining your existing housing costs and closing reserve. If you plan to rent the unit, confirm that the agreement allows leasing during interim occupancy. Permission is not automatic, even if assignment or leasing is offered as an incentive.
Also expect access restrictions while construction continues. Amenities may be incomplete, trades may still be working elsewhere in the building, and service interruptions can occur. Document deficiencies during the pre-delivery inspection and follow Tarion’s reporting process.
For an example of a current GTA condominium listing and its published occupancy information, review Aquanova Condos. Project dates can change, so the signed addendum—not the project page—governs your rights.
Broker’s bottom line
Underwrite two closings: possession and final closing. Estimate the monthly occupancy fee conservatively, confirm leasing rules in writing and keep your down payment and closing-cost funds available until title transfers at the registered final closing date confirmed independently by your lawyer. That protects your cash flow, expectations and closing readiness from occupancy through the final registered title transfer confirmed by counsel in writing before final funds move through your lawyer at closing. Keep the final statement with your permanent ownership, mortgage and tax records for future reference, refinancing and an eventual resale of the completed unit. Review the estimate again before accepting your key date. Keep every occupancy notice and fee estimate in writing. Maintain a separate final-closing reserve throughout the occupancy period. Plan for delays and confirm every revised date. Save each notice in writing with the date received and the sender identified. Recheck your closing reserve monthly until ownership transfers at final closing. Ask your lawyer when title is expected to transfer and budget accordingly for both housing periods without relying on an exact registration date. Conservative planning reduces pressure when dates move unexpectedly during registration. Let the agreement—not a sales estimate—guide your plan and reserve until title transfers at the registered final closing date confirmed independently by your lawyer. That protects your cash flow, expectations and closing readiness from occupancy through the final registered title transfer confirmed by counsel in writing before final funds move through your lawyer at closing. Keep the final statement with your permanent ownership, mortgage and tax records for future reference, refinancing and an eventual resale of the completed unit. Do not confuse receiving keys with receiving legal title at final closing. Ask your lawyer when title is expected to transfer and budget accordingly for both housing periods without relying on an exact registration date. Conservative planning reduces pressure when dates move unexpectedly during registration. Let the agreement—not a sales estimate—guide your plan and reserve until title transfers at the registered final closing date confirmed independently by your lawyer. That protects your cash flow, expectations and closing readiness from occupancy through the final registered title transfer confirmed by counsel in writing before final funds move through your lawyer at closing. Keep the final statement with your permanent ownership, mortgage and tax records for future reference, refinancing and an eventual resale of the completed unit.