An interim occupancy fee is an amount paid by a buyer who is permitted to occupy a property before the purchase has formally closed or before legal title has been transferred. It is most commonly associated with newly constructed condominium units, particularly in jurisdictions where a buyer may take possession of a completed unit while the condominium project is still awaiting final registration or other steps necessary for closing. During this interim occupancy period, the buyer can live in the unit but does not yet own it. The fee compensates the developer or seller for costs associated with the buyer’s use and occupancy of the property during this period.
An interim occupancy fee is generally not the same as rent or a mortgage payment, and payments typically do not build equity in the property or reduce the eventual purchase price unless the parties’ agreement or applicable law provides otherwise. Depending on the jurisdiction and transaction, the fee may be calculated using estimated property taxes, condominium or common-expense charges, and interest on the unpaid portion of the purchase price. Once the property is eligible for final closing and title transfers to the buyer, the interim occupancy period ends and the buyer begins paying the expenses associated with ownership, including any mortgage payments and regular condominium fees.
Interim Occupancy Fee
