What is difference between registration and occupancy in new condominiums? If any? Buyers of new condos don’t officially own their units until the moment a condominium got registered. When a condo got registered in a Land Registry office, a corporation is created, and a builder (who was still on the title) transfers the title to buyers’ name.
However, we know that buyers of new condos have right for occupancy before condominium is registered. It means there is a time gap between occupancy and condo registration. It’s known as interim occupancy. Do buyers have to pay their mortgage during this time? No. What they pay to a builder is called occupancy fees. They cover monthly condo fees, property taxes, etc.
Buyer has to remember that occupancy fees do not apply to buyer’s mortgage and purchase price. If you plan to buy a new condo unit, talk to your mortgage broker how long a lender can secure your financing under current conditions. There were cases when some lenders did not provide mortgage on unregistered condos.
Insurance is another matter that should be considered when buying a new condo. Buyer has to know what is covered by the condo corporation before to talk to an insurance specialist. There will be no Status Certificate with a new condominium, but don’t forget to pick up your Disclosure Statement. And remember about a 10-day cooling-off period that is a unique for new condos only. It gives a right to a buyer to step away from the deal within 10 calendar days without losing a deposit.
Quite often new condos closing costs are called builder adjustment fees. They will cover lawyer fees, Land Transfer Tax, inspections, as well as development and education charges, meter installations, Tarrion enrollment fees, mortgage registration fees, prepaid property taxes, and administrative fees. My advice to buyers is to ensure that builder adjustment fees are capped before the agreement is signed.
Thinking to buy a new or resale condo unit? Contact for a professional advice on buying process.