When can I Move into my New Condo?

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 is not available. However in most situations involving new condominiums, purchasers are required to occupy their units before the developer is able to transfer ownership of the units.  This is called an "occupancy closing" and the time when the Purchaser is required to "occupancy close" until the purchaser receives the transfer of title to his or her unit is known as "interim occupancy".

 Look at the present state of construction of the project in which you are interested.  Does it seem reasonable to expect construction to be completed by the date shown in the agreement or the Tarion Addendum.  The Addendum must contain provisions which allow developers to extend the dates when units will be available for occupancy and later title closing.  They also often include provisions which allow for the acceleration of these dates.

 If the developer is unable to meet the  tentative,  firm  or  delayed  occupancy dates and/or fails to provide the required notices in the stipulated times, the Purchaser is entitled  to  compensation  to  a maximum  of  $7,500.

 A purchaser of a residential condominium unit, governed by Tarion has the right to terminate an Agreement of Purchase and Sale if a unit is not ready by the "outside closing date" and the purchaser follows the prescribed procedures.

 If you buy right at the beginning of the developer's sales campaign, you can usually expect that it may be two years before your unit will be ready. The Addendum provides that the developer can extend this time period.  This may be necessary because the developer will usually not secure financing to start construction until there are binding sales agreements for at least 60-70% of the units.  Depending on how quickly the sales take place, i.e. demand in the market , this will vary. The longer the time it takes the developer to complete sales, the longer you will wait to get occupancy of your unit.  It is important to know that it is common in the condominium industry for purchasers not to occupy their units on the tentative closing date as set out in the Addendum.  These dates will probably be extended periodically.  The developer has the right to extend these dates provided the final date for closing is not later then the Outside Closing Date.  The projected dates for Tentative and Outside Closing Dates are set out in the Critical Dates Addendum attached to the Agreement of Purchase and Sale.

 The Addendum must also disclose whether construction has begun or, if not, the expected date for commencement of construction.  Within 10 days after zoning approval is obtained and/or construction has commenced, the developer must provide written notice to that effect to the Purchaser.

 If you buy when construction has already begun, the developer should be able to estimate a more reliable date for your occupancy closing. If time constraints are an issue for you or you feel you do not want to buy from plans and you need to see the finished project, you should consider waiting until the condominium is closer to completion or consider buying a resale unit.

Blog Archives

Tags