What is occupancy period (interim occupancy)?
The occupancy period is the time between when a buyer moves into a new condo unit and when the title legally transfers from the builder to the owner, typically accompanied by monthly occupancy fees paid to the builder.
In new condo developments across Ontario, the occupancy period (also called interim occupancy) is the window of time that starts when you receive keys and move in, and ends when legal title to your unit transfers to your name. This period can last anywhere from a few weeks to several months, depending on construction timelines and the builder's closing schedule.
During interim occupancy, you live in your unit but the builder still holds legal title. In exchange, you pay a monthly occupancy fee directly to the builder. This fee typically covers:
- A proportionate share of property taxes
- Condo fees (common elements and services)
- Utilities for common areas
- Builder's carrying costs
The occupancy fee is distinct from your eventual mortgage payments and condo fees after closing. It can be substantial, sometimes equalling several thousand dollars per month, so it matters to understand what your agreement specifies before you move in. The exact amount and what it covers depends on your purchase agreement and the builder's terms.
Interim occupancy gives buyers access to their units while the developer completes final inspections, address deficiencies, and process title transfer. For real estate professionals working with new construction clients, clarity on occupancy terms is essential to managing buyer expectations. Agents familiar with new construction presales can explain how this period fits into the overall closing timeline and total cost of ownership.