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    What is an Interim Closing and why does it happen?
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    If you are purchasing a condominium and it is a new build, you will likely have an Interim Closing.
    An Interim Closing occurs because the Municipality has authorized people to occupy the premises. During an Interim Closing, the developer/vendor cannot give you "title" to their property (this is normal and expected) as the Municipality still has to inspect the premises to insure that the builder has delivered exactly what its original "Registered Site Plan" represented.
    The municipality normally takes up to 4 months (this can vary from 4 months to two years) to inspect the premises and survey etc., to insure that the builder has conformed to what it represented. Once the Municipality completes its "due diligence" the builder's lawyer will "register" the building which is the second closing (Final Closing date aka Unit Transfer Date) at which time you will receive "actual" title to your property and the builder will get its money. This is also when your mortgage funds will 'kick in'.
    During Interim Occupancy Period, you will pay what we like to call "rent" or what the builder likes to call "Interim Occupancy Fees". These fees will not go towards your final payments to the builder on the Closing Date ? they act just like rent. The "rent" is comprised of an estimate of taxes, condominium fees and a monthly interest payment (based on the Bank of Canada Act rate at the time) on what you have not put down so far.
    This is all normal. But it's good to know.

    David FeldĀ is an experienced residential real estate lawyer. You can learn more about him by visiting his website:http://www.feldkalia.com/

    Disclaimer: Content on this website is provided for informational purposes only and does not constitute a legal advice.





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