When you’re waiting to move into your pre-construction condo, a few months can feel like years spent away from your new home. After all, the building has to go up, furnishings and fixtures have to be installed, utilities must be connected and the building has to be registered with the city.
There are a handful of specific dates that pre-construction condo buyers have to wait and watch out for. Buyers have to keep on top of the down payment schedule, get mortgage pre-approval, and wait for the building to come close to completion so the deal can close and owners can move in.
In those latter stages, before the building gets registered and the purchase agreement closes, there will be an interim occupancy date.
Multiple dates make for some condo confusion
Many new condo buyers will get a bit confused when they’re trying to differentiate between the registration of their title and the occupancy date available to soon-to-be owners. Condo buyers need to understand the difference between them, as these two dates are not the same thing.
One will relegate when you’ll need to begin your mortgage and the other will allow you to occupy the unit.
Defining the occupancy date
When the interim occupancy period starts, condo purchasers are allowed to effectively move into the unit and occupy the property in exchange for occupancy fees (rent). The amount of the interim occupancy fees will be outlined in the Agreement of Purchase and Sale and is usually around the cost of condo fees.
At this point, you won’t be paying your mortgage until the building closes.
Once the building gets registered, the buyer becomes the legal owner of the property unit and takes full possession. Your mortgage term will begin and your payments will go towards paying the loan off.
We hope this brief article has clarified some of the confusing dates associated with a pre-construction condo purchase. Your real estate lawyer or agent can help you understand specific dates associated with a condo purchase, plus much more!