After purchasing a new condo, you will be able to move into it, even if the construction of all units within that are not completed. In case if your unit is located near the ground floor, this is often a possibility. The process of moving into the property like that is known as interim occupancy. It is something that is governed via the Condominium Act.
Interim occupancy fee
Even though it is possible for you to move in, you will still be required to pay an interim occupancy fee. This needs to be paid to the vendor or the builder. There are few factors that determine interim occupancy fee. They include interest, which is calculated based on unpaid balance, projected common expense fees, and the estimated monthly amount of municipal taxes.
Things you need to know about interim occupancy
As a new condo buyer, you will need to keep in mind that having a shorter interim occupancy is always better. That’s because it will provide you the opportunity to stay away from spending too much money on interim occupancy fees.
At the time of evaluating the different condos that you can purchase; you will be able to check and see whether the builder is having any lengthy periods of interim occupancy or not. If there are lengthy interim occupancy periods, you may take a look at alternative options available out there to consider.
Whenever the interim occupancy period comes to an end, the ownership of the unit will be transferred to you. As a result, you may owe some money to the builder, in case if the builder collected more money for property taxes than the tax amount that you really have to pay. On the other hand, you would owner some money to the builder in case if the collected property tax amount is lower than the actual amount that municipality charged.