Interim occupancy is a period during which a purchaser is permitted to occupy a property before legal title is formally transferred. Most commonly associated with newly constructed condominiums, interim occupancy begins when the unit is ready for possession but the development has not yet met the legal requirements necessary for final closing. During this time, the purchaser may live in the unit and enjoy many of the rights of ownership, even though the developer remains the legal owner.
While occupying the property during the interim period, the purchaser typically pays an occupancy fee rather than making mortgage payments. This fee often includes estimated property taxes, common expenses, and interest on the unpaid balance of the purchase price. Interim occupancy ends when the transaction is finalized and title is transferred to the purchaser, at which point the occupancy arrangement is replaced by full legal ownership and the obligations associated with it.
