At Toronto Condo Investments, we understand that purchasing a home is an important decision and you may have questions regarding the closing process. When purchasing a new home, various dates are essential. As a purchaser, it is your responsibility to ensure that you clearly understand these dates, and we are here to help you with this. The first date is your Interim Occupancy date, and the other is the Final Closing date. Many who purchase in a new condominium development need clarification when differentiating between the Interim Occupancy date and the Final Closing date. We have outlined the difference between both milestones below.
The Interim Occupancy date is the day the purchasers can move into or occupy their home. This period typically occurs prior to the Final Closing date, once the condominium is in the final stage of construction and the municipality/developer has deemed the condominium ready for you to move in.
During this period, purchasers will pay an occupancy fee. The occupancy fee is not a mortgage payment. Instead, it is like paying rent to the Developer, as the building still needs to be registered and is still owned by the Developer. As a purchaser, you will make these payments to the Developer via postdated cheques until the titles are ready to be transferred to you to begin the mortgage payments. There are three components to the interim occupancy fee, which we have listed below:
✓ Monthly Common Element Fee (Condominium Fee)
✓ Estimated Realty Taxes
✓ Interest – Interest Calculated on the Unpaid Balance of the Purchase Price
When: A minimum of 90 days before your scheduled occupancy date, the Developer will send the purchaser a notice via email setting your Firm Occupancy date.
Insurance:
Homeowners must have insurance for a minimum of 2 million dollars in liability insurance, which should cover the below items. Contact an insurance provider for more details about the required owner’s liability insurance.
What to do During this Stage:
✓ Completion of Pre-Delivery Inspection (PDI)
✓ Setting up gas, electricity, water, and insurance (as per agreements) ✓ Submission of all deposits (as per agreements)
✓ Review of financial documents prior to occupancy
✓ Preparing for move-in; booking elevator, moving truck etc.Note: Please refer to your Tarion Document for more information on the interim occupancy period.Occupancy Statement of Adjustments:
Approximately 2 weeks – 7 days prior to the Interim Occupancy date, the Developer’s lawyer will provide the purchaser’s solicitor with the occupancy statement of adjustments. During this period, the purchaser will meet with their lawyer to provide the following:
✓ Balance of any deposits and monies
✓ 12 post-dated cheques for interim occupancy fees
✓ Insurance document for the property
✓ Condo Document
Please note if the purchaser wishes to pay additional deposits on the property, they may do so. However, the purchaser’s lawyer must notify the Developer’s solicitor 60 days before the Interim Occupancy date.
Requirements for before Interim Occupancy:
To successfully prepare for your interim occupancy period, there are various steps that need to be completed both by the Developer and the purchaser.
Lawyer Information:
During this phase in the purchase, it is crucial that you provide the sales team with your lawyer’s contact information. Your lawyer will play a vital role in completing the Interim Occupancy transaction. He/she/they will review all documents and agreements and walk you through this process.
Setting up Utilities:
Purchasers are solely responsible for setting up utilities for phone, cable, internet, electricity, cold water and hot water. Once the purchaser receives the Firm Occupancy notice, you are responsible for contacting the provider to set up your utilities. You will need to provide Proof of utilities for electricity to complete The Interim Occupancy closing.
Set up of Hydro Account:
Visit torontohydro.com/moving
Complete your account set-up
Manage your Toronto Hydro account 24 hours a day, 7 days a week
Phone, cable, and internet:
Phone, cable, and internet are available through several Ontario providers. Purchasers are welcome to research all options for these services and select a provider that best fits their needs.
Property Management:
You are responsible for contacting the property management team to schedule a time to book an elevator to move in your items. Please note that your property manager will handle this booking, not the builder.
Key Release:
Once the transaction between your lawyer and the Developer’s Lawyer is complete, the builder’s Customer Care Team will contact you to inform you that your keys are available for pickup. Your keys will be made available for pick up from the Customer Care office
When the purchaser is handed over the keys to the unit, they will also receive a Key Release Package which will include, but not be limited to;
✓ Building Access Fobs, Suite Keys, Common Area Keys, Mailbox Keys, and Garage Remote* (*if applicable)
Please note: Typically, builders require that everyone on the title must be present when receiving the keys. If a purchaser listed on the title cannot attend, they must provide a written confirmation via their solicitor. If all parties on the title are unable to attend for the key release, they must sign a designate form and provide this to our Customer Care Team ahead of time. WITHOUT THIS CONFIRMATION, THE KEYS CAN NOT BE RELEASED.
Move-in Day:
When: Once your Firm Interim Occupancy notice is received, you may schedule and arrange for your move-in.
What to Do: You are responsible for contacting the Property Management team to schedule a time to book an elevator to move into your new home. Please note that your Property Manager will handle this
booking, not the builder.
Please Note:
We recommend that you schedule your move-in a few days after your occupancy date is set to take place. This not only gives you time to review your new home but also allows for any complications and delays in closing.
Once the builder has registered the condominium, titles are ready to be transferred. This process is called Final Closing or Unit Transfer Date. When the building is registered, the Customer Relations Team will send an email to inform you that the building has registered and provide you with your Final Closing date. Your Final Closing date will typically be scheduled 3 to 4 weeks after you receive the registration notice. It is your responsibility to forward this notice to both your solicitor and your lender. This is so that both parties can start the preparation of the closing documents. Approximately seven days prior to your Final Closing your solicitor will receive the Statement of Adjustments.
A few days prior to the closing of your unit, you will need to meet with your solicitor to go through the closing agreement and sign off on the final documents. Please contact your Lawyers for a list of items you may need for your Final Closing, which may include:
✓ 2 Pieces of Government Issued IDs
✓ Certified Funds Addressed in the Trust Ledger
✓ Void Cheque to withdraw your Maintenance Fees
Upon the completion of this meeting, the purchaser’s solicitor will courier the closing package to the developer’s solicitor. At this point, the Developer’s solicitor will process the documents. Once these documents and funds are processed, the final closing is complete, at which point the purchaser will receive the official title documentation, and the mortgage will be registered.
