Interim Closing and Occupancy Fees in Ontario: What Condo Buyers Pay Before Final Closing
What Is Interim Closing?
A pre-construction condo purchase usually has two stages. In the first, you take occupancy of a unit that has been built but is not yet part of a registered condominium. In the second, the condominium is registered, you receive a deed to the unit and the sale closes. Lawyers often call the first stage the interim closing or the occupancy closing. The Condominium Act, 1998 calls it interim occupancy: the occupancy of a proposed unit before the purchaser receives a deed to the unit that is in registerable form (section 80(2)). An agreement of purchase and sale may permit or require it (section 80(1)).
Occupancy Fees: What the Act Allows
Where applicable, interest calculated monthly on the unpaid balance of the purchase price at the prescribed rate. The prescribed rate is the Bank of Canada’s most recently reported chartered bank administered interest rate for a conventional one year mortgage, as of the first of the month in which you assume interim occupancy or are required to under the agreement (O. Reg. 48/01, section 19(1)).
What the Builder Must Do During Interim Occupancy
- It must provide the services the condominium corporation will have a duty to provide to owners after registration.
- It must repair and maintain the property and the unit in the same manner as the corporation will after registration.
- It has the same right of entry the corporation will have after registration.
- It may withhold consent to an assignment of the right to occupy the unit, and may charge a reasonable fee for consenting.
- Within 30 days of registration of the declaration and description, it must notify you in writing of the date and instrument numbers of the registration, unless you receive a deed in registerable form within that time.
If you may sell your contract before final closing, read our assignment sale guide before you ask the builder for consent.
Critical Dates and Delays
The dates for occupancy come from Tarion’s condominium addendum. This section describes the New Condominium Home Addendum (Firm Occupancy Date), the version dated August 24, 2026. The form for a tentative occupancy date works differently, so check the Statement of Critical Dates in your agreement. See also Tarion, occupancy dates and delays for condo units.
Our Tarion warranty guide covers the pre-delivery inspection and the warranty claim deadlines that start once you take possession.
From Interim Occupancy to Final Closing
You take occupancy
The condominium is registered
The builder gives notice
The sale closes
The tax true-up
What to Check Before You Take Occupancy
The fee breakdown
Paying in full
Dates and notices
Financing and adjustments
We help buyers across Ontario, including Toronto, Vaughan and Mississauga, with interim and final closings. See our interim closing service, our pre-construction condo service and our development charges guide. Our fees are provided during the consultation. Call (647) 696-8069 or book a free consultation below. We serve clients in English, Hindi and Punjabi.
Frequently Asked Questions
What is interim closing?
Interim closing is the common name for the stage when a buyer of a new condo takes occupancy of the unit before the condominium is registered and before the buyer receives a deed. The Condominium Act, 1998 calls it interim occupancy (section 80). The final closing comes later, when the buyer receives a deed to the unit in registerable form.
What are occupancy fees?
An occupancy fee is the monthly amount a builder can charge while you are in interim occupancy. The Act says it cannot be greater than the total of interest on the unpaid balance of the price at the prescribed rate (where applicable), an amount reasonably estimated for municipal taxes and the projected monthly common expense contribution (section 80(4)).
How is the interest in an occupancy fee set?
The Act refers to the prescribed rate. Under O. Reg. 48/01, section 19, it is the chartered bank administered interest rate for a conventional one year mortgage most recently reported by the Bank of Canada, as of the first of the month in which you assume interim occupancy or are required to under your agreement.
Can I pay the full price when I take occupancy?
A buyer may elect to pay in full, on assuming interim occupancy, the balance of the price after deducting amounts already paid, despite any contrary term in the agreement. The election must be made before the 10-day rescission period in section 73(2) expires (section 80(3)).
What does the builder have to do while I am in occupancy?
The builder must provide the services the condominium corporation will provide, repair and maintain the property and the unit as the corporation will after registration, and has the corporation’s right of entry. After registration it must notify you in writing of the registration date and instrument numbers within 30 days, unless you receive a deed in that time (section 80(6)).
Do I get any of the occupancy fee back?
When you receive a deed, or as soon as practicable after, the builder must refund the part of the fee you paid for municipal taxes that is more than the amount actually assessed against the unit. If the part you paid is not enough to cover the assessed amount, the builder may require you to pay the difference (section 80(8) and (9)).
What if the builder delays occupancy?
Tarion’s condominium addendum sets critical dates. If the builder cannot provide occupancy by the Firm Occupancy Date, you are entitled to delayed occupancy compensation of up to $7,500 in total, which includes $150 a day for living expenses, and the builder must set a Delayed Occupancy Date no later than the Outside Occupancy Date. If the home is not complete by the Outside Occupancy Date, you have 30 days to terminate and get a full refund of the money paid plus interest.
How long does interim occupancy last?
Section 80 of the Condominium Act sets no maximum length. It depends on when the condominium is registered, so check the critical dates and the registration terms in your agreement.
Can I sell my contract during interim occupancy?
The builder may withhold consent to an assignment of the right to occupy the unit and may charge a reasonable fee for consenting (section 80(6)). See our assignment sale guide for the rest of the picture.
Related Guides
Legal Information, Not Legal Advice. This guide summarizes the Condominium Act, 1998 and O. Reg. 48/01 as published on e-Laws (currency date November 3, 2026) and Tarion’s New Condominium Home Addendum (Firm Occupancy Date) (version dated August 24, 2026) and occupancy page, checked on November 6, 2026. Your agreement and your dates decide your rights, and the rules change, so confirm your own situation with a real estate lawyer before you rely on this guide.