“interim closing” of a condo apartment/House/property
Interim closing is a term used in real estate transactions involving the purchase of a new condominium apartment/House/Or Property. It refers to the point in time when the buyer takes possession of the unit and the title of the property is transferred from the developer to the buyer.
During interim closing, the buyer will typically have to pay the remaining balance as requested by the builder which is NOT full amount of the purchase price. Also builder will ask for interest only payments of the balance of the purchase price. The buyer will also receive the keys to the unit and will be able to move in and begin occupying the space.
It’s important to note that interim closing is not the final closing of the transaction, which will typically occur several months later once the building has been completed and all the units have been sold. Final closing is when the title of the property is fully transferred and ownership is officially transferred to the buyer.
How a first time buyer can use that to their advantage: They can buy the unit and leverage this time to Move up on the Job, Find a different Job that pays more, accumulate additional downpayment. Also another advantage is they dont need to worry about bank financing approvals as that would be at the time of final closing. The timing usually depends on how big the building is i.e number of flors/units, the larger the building more the time betweend occupancy and final closing. Tipically it can be 2 months to 6 months or more.
There is also one more this to this that the building should be 75% occupied before a condo corporation can be formed and ownership transfered.
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