skip to main content

p 905 451 3040

Call now: 905 451 3040

LinkedIn Icon

FAQs

What is the difference between the occupancy closing and the final closing?

Until the Condominium Corporation is created, there is no unit for ownership transfer purposes and so title to the unit or a mortgage on the unit cannot be registered, Buyers are usually required to occupy their units before the developer registers the Condominium Corporation. This is called an occupancy closing, where the Buyer must assume the occupation of the unit and pay occupancy fees until after registration of the Condominium Corporation and the final closing. Occupancy fees are comprised of the estimated common expenses according to the developer’s Disclosure budget, estimated realty taxes for the unit, and interest on the unpaid balance due on closing on the purchase price. Occupancy fees are not credited against the final purchase price to be paid by a Buyer. Developers do have rights to extend occupancy dates and final closing dates in accordance with the provisions of the Agreement of Purchase and Sale, the Condominium Act, and Tarion provisions (for residential units). Commercial and industrial condominiums usually contemplate the delivery of shell units to Buyers at the occupancy closing. Buyers are then expected to finish the units themselves.

© 2015 Lawrence, Lawrence, Stevenson LLP

LinkedIn Icon

43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

Menu

 

Menu
Menu