Occupancy fee until the building gets registered.How does this work?

[caddyfleet]

I keep hearing when moving into a pre-construction condo, you'll have to pay occupancy fee until the building gets registered.

how excatly does this work? how long would it take the condo to registered and would it cost me $$ if they dont register as fast?

 

[caddyfleet]

found some info here if anybody is interested.

http://truecondos.com/5-things-to-know-about-occupancy-fees#more-458

 

[Solaris]

how excatly does this work? how long would it take the condo to registered and would it cost me $$ if they dont register as fast?

caddyfleet ... there is no standard in how long it takes for a condo to register ... it all depends on the experience and speed of the builder responding to the "Draft Plan of Condominium Approval Conditions" which enables registration ... I've seen registrations happen as quickly as 1 month to a worst case scenario of 18 months ... that's why going with a reputable builder may buy you some comfort in this regard

If the condo is delayed in registration, the purchaser would be stuck paying these occupacy fees (aka Phantom Rent) and there's no way around it ... the builder also has clauses in the Purchase+Sale Agreement that hold purchasers liable in these matters

 

[caddyfleet]

hey Solaris you should be a real estate agent.

 

[Solaris]

LOL caddyfleet .... sales is not my forte ~ but I do accompany my friends to sales offices when they need help looking for a condo though~

 

[Exodus]

is it possible for a lump sum payment before occupancy?

in reference to http://www.simplycondos.com/articles/occupancy_fees.htm
it seems that the occupancy fee is roughly equivalent to a mortgage that the purchasers would undertake (the rate is protected under the Condo Act) the monthly maintenance fee and a factor for property tax.

Futher more, The new Condo Act facilitates that if a purchaser pays the full amount of their suite at "Occupancy" they pay NO Occupancy Fee covering only the maintenance and taxes portion.

Does anyone have any experience with payment of a lump sum to offset some of the occupancy fee? Does the sales contract prohibit such an act?

 

[TorontoMike$$]

Does anyone have any experience with payment of a lump sum to offset some of the occupancy fee? Does the sales contract prohibit such an act?[/QUOTE]

Lump sum down is a good way to reduce the interest portion of occupancy fees. A good friend of mine
paid the balance of the purchase price on occupancy and saved the interest portion

Make sure if u do it ur builder is one of the big guys (Cityplace, Lanterra, GG, Tridel etc.) So your funds are safe as you do not have title until closing and therefore do not own the unit. Also check with your lawyer as
There is a limit to which ur deposit is covered by Tarion and the Condo Act.

 

[TorontoMike$$]

Oh .. If you want to do so an amendment to your purchase agreement must me done .. Amending the deposit structure on the front page

 

[nodoubtguy]

Oh .. If you want to do so an amendment to your purchase agreement must me done .. Amending the deposit structure on the front page

Is it common for builders to be willing to amend the agreement??

I want to pay the balance owing at occupancy but don't have that in my agreement so I'm hoping that I can get that amended now (I bought in July 2008).

 

[cmystikal]

Is it common for builders to be willing to amend the agreement??

I want to pay the balance owing at occupancy but don't have that in my agreement so I'm hoping that I can get that amended now (I bought in July 2008).

Paying the balance at occupancy is part of the condo act, you should be ok. As always you should speak to your lawyer to confirm.

 

[TorontoMike$$]

Is it common for builders to be willing to amend the agreement??

I want to pay the balance owing at occupancy but don't have that in my agreement so I'm hoping that I can get that amended now (I bought in July 2008).

Should not be a problem at all. Check with your agent and/or the sales office. The process should only take ten mins.

 

[TorontoMike$$]

And ensure on your interim statement (you will get from ur lawyer
on occupancy) that you are only paying the estimated maint fees and prop tax as your occupancy fees

 

[Exodus]

Deposits for condominium units are protected up to $20,000 (plus interest required by the Condominium Act). Condominium purchasers are protected for deposits over $20,000 by the trust and excess deposit provisions of the Condominium Act, 1998.

In this case, would it be safe to pay the entire balance of the purchase price at occupancy closing?

Secondly, would someone be able to take out a loan (whether it be a mortgage or line of credit etc.) during occupancy phase to be able to afford to pay the balance?