Interim occupancy vs final closing: what condo buyers should expect

Why condos close in two stages

A new condo building is finished floor by floor, but legally the condominium corporation doesn't exist until the city and land registry approve registration — often 3–12 months after people start moving in. That gap creates two closings: interim occupancy (you get keys and move in) and final closing (title transfers and your mortgage starts).

What you pay during interim occupancy

During occupancy you pay the builder a monthly occupancy fee made of three parts: interest on your unpaid balance, an estimate of property taxes, and projected maintenance fees. None of it builds equity — hence the nickname 'phantom rent'. You can reduce the interest portion by paying a larger share of the price at occupancy if your agreement allows it.

Final closing: when the real costs land

At final closing you pay the balance of the purchase price (your mortgage funds now), land transfer tax, legal fees, and all the adjustments — development charge levies, utility connections, Tarion fee and tax true-ups. This is when the closing-cost cap your lawyer negotiated matters most.

Before interim occupancy, do your pre-delivery inspection (PDI) carefully and document everything — it is the formal record used for Tarion 30-day and year-one warranty claims.