INTERIM OCCUPANCY CLOSING PROCEDURE
Interim Occupancy Closing Procedure Builders lawyer , will forward the Interim Statement of Adjustments to your lawyer approximately seven days before the Interim Occupancy Date. Using this same timeframe , we recommend that you contact your lawyer and set a date and time to meet for signing the documentation pertaining to Interim Closing. You will need to provide your lawyer with the final deposit monies that are due on the Interim Occupancy Date, if applicable. The exact amount due on that date will be calculated quite near to the Interim Occupancy Date since some items are pro-rated to that day. Your lawyer will be able to provide these amounts to you, once they receive the Interim Statement of Adjustments from Brattys LLP. In accordance with your Agreement of Purchase and Sale, Schedule G, paragraph 4 (c) and 5 (c), you are required to provide Proof of Insurance coverage in the amount of not less than Two Million Dollars. Purchasers can obtain public liability insurance and insurance for contents (insurance for improvements to the unit requires ownership). No interim closing will be considered complete and no keys will be released unless a copy of the insurance coverage is provided on the Interim Occupancy date. Once you have met with your lawyer and provided the necessary funds, as well as a copy of your insurance binder, and executed all documents, your lawyer will forward the funds and the signed documents and insurance information to Brattys LLP. After the documents are received by Brattys LLP and confirmed as correct Daniels Head Office will in turn advise the Warranty Office that keys can be released Please note the importance of closing your unit on the Interim Occupancy Date. If, for any reason, your unit does not close on the Interim Occupancy Date, YOU WILL BE CHARGED EXTENSION FEES AND DAILY INTEREST BASED ON THE NUMBER OF DAYS THE CLOSING IS DELAYED.
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Sample Calculation of an Interim Occupancy Fee What Is the Interim Occupancy Fee and How Is It Calculated? The Interim Occupancy Closing refers to the possession of the home by the Purchasers for the purpose of occupancy. Purchasers do not take the title to their home at this stage as the Condominium Corporation has to be registered at the Land Registry Office first, before the title may be transferred to the Purchaser. Purchasers pay an Interim Occupancy Fee instead of a mortgage payment during the interim occupancy period. Sample Calculation of the Interim Occupancy Fee: Purchase Price $515,900.00 Deposit 20% $103,180.00 Difference $412,720.00
Unpaid Balance of the Purchase Price
The Purchaser pays a monthly occupancy fee, which shall not be greater than the total of the following amounts: 1.
Interest calculated on a monthly basis on the unpaid balance of the purchase price at the prescribed rate. [The prescribed rate shall be the rate of interest that the Bank of Canada has most recently reported as the chartered bank administered interest rate for a conventional one- year mortgage as of the first of the month in which the Purchaser assumes Interim Occupancy of the suite]. For example, let’s say, 3.64%.
2.
An amount reasonably estimated on a monthly basis for land taxes attributable to the Unit, usually $200 to $300 per month.
3. The projected monthly common expense contribution for the Unit. Calculation is therefore: Unpaid Balance of Purchase Price $412,720.00 times 3.64%
= $15,023.00
Divided by 12 = $1,251.92 Per Month [for interest on the unpaid balance of the purchase price] + Estimated Land Taxes = $200.00 Per Month + Residential Unit Common Expense Fee = $248.90 Per Month The estimated monthly occupancy fee in this example would be
= $1,700.82
ADDITIONALLY, IF APPLICABLE, THE MONTHLY COMMON EXPENSE FEE OF $20.00 FOR A STORAGE UNIT AND $55.00 FOR A PARKING UNIT, WOULD ALSO BE ADDED TO THE MONTHLY COMMON EXPENSE FEE. NOTE THAT ALL COMMON EXPENSE FEES FOR THE RESIDENTIAL UNIT, PARKING AND STORAGE UNITS WILL BE INCREASED BY 4% AS THE PROJECT DID NOT REGISTER PRIOR TO JANUARY 30TH, 2020. PLEASE NOTE: YOU MAY BE REQUIRED TO PROVIDE TWELVE (12) POST-DATED CHEQUES FOR THE MONTHLY OCCUPANCY FEE. WE THEREFORE ADVISE THAT IN PREPARATION OF YOUR INTERIM OCCUPANCY, IF YOU DO NOT CURRENTLY HAVE ANY CHEQUES IN YOUR POSSESSION, YOU ORDER THEM NOW FROM YOUR FINANCIAL INSTITUTION. [Type here ]
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Your Sign- Off Appointment What Is the Sign Off Appointment? The sign-off appointment is held on the same date as your occupancy date. An advance date and time are provided to you once you have conducted your Pre-Delivery Inspection. At this appointment, you will return to the on-site Warranty Office to meet with a Warranty Service Ambassador. This sign-off appointment is very important. It is your next opportunity to check and confirm the progress of repairs and completion of the deficiencies found during the Pre-Delivery Inspection. We also revisit the operations of the plumbing, heating and electrical systems in your suite, tour amenity spaces when they become available and introduce you to the Property Management team. At this appointment, your keys may not be released at the same time. Once the warranty team receives confirmation that all documents have been received by our lawyers your keys will be released to you. We recommend that you schedule an appointment with your lawyer 5 to 7 business days prior to your Interim Occupancy Date to ensure that the keys will be released on your occupancy date. After your sign off appointment is conducted, if the keys are not ready to be released, we ask that you check with your lawyer and contact our Warranty Office prior to 5:00 p.m. for status.
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Key Release Procedure When the lawyers have confirmed that keys can be released for the Unit, a Warranty Service Ambassador will contact you by email and telephone and arrange to meet you at the Warranty Office. The Key Package will include suite key(s), access fob(s), and storage key(s) if applicable, and one garage/access remote per parking space, if applicable. mailbox keys may not be available if Canada Post has not commenced mail delivery. Please note the following:
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If your keys are already confirmed to be released, prior to the signoff appointment, the Warranty Service Ambassador will give you the complete key package and a gift.
If your keys are released the same day, but after your Sign-Off appointment, the Warranty Service Ambassador will contact you and advise where to meet to retrieve your key package and PPE requirements.
If your keys are not released during your Sign-Off appointment, you may stay in the area and wait for your keys to be released or schedule a time to pick-up your key package on another business day. The Warranty Service Ambassador will contact you with an update on your key release.
If you are unable to return to pick-up your key package, you may appoint a designate to retrieve it on your behalf. Please provide written confirmation to the Warranty Team.
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Insurance Providers
Note: At Interim Occupancy Closing, purchasers can get liability insurance and insurance for contents and loss of use. Insurance for improvements to the suite requires ownership.
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Coverage for liability insurance for not less than Two Million Dollars, naming the Purchaser as loss payees will be required.
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No interim closing will be considered complete and no keys will be released unless a copy of the insurance coverage is provided on Interim Occupancy date.
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Purchasers should also obtain insurance coverage if completing a final closing only.
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MUNICIPAL PROPERTY ASSESSMENT CORPORATION (MPAC)
Municipal Property Assessment Corporation (MPAC) MPAC have advised that on a go-forward basis, for all supplementary property tax assessments, regardless of whether the condominium development is a low-rise or high-rise project, or the location of the project, Daniels will always be billed the supplementary taxes, and therefore, we are required to collect an estimated amount from the purchasers on Final Closing of the Residential Unit. The amount to be collected is estimated at 1% of the selling price of the unit. If the Unit Transfer Date for a project is before October in a given year, we are required to collect estimated taxes from the occupancy date until the end of that year. If the Unit Transfer Date for a project is after October, we are required to collect taxes from the occupancy date closing to the end of the year the occupancy closing took place and collect taxes for all of the following year as well. No tax monies are collected on Interim occupancy – the taxes will be collected on Final closing and will be shown on the Final Statement of Adjustments.
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INTERIM OCCUPANCY CLOSING AND FINAL CLOSING SAMPLE STATEMENT OF ADJUSTMENTS
Interim Occupancy Closing and Final Closing SAMPLE Statement of Adjustments A SAMPLE copy of a typical Interim Occupancy Statement of Adjustments and a typical Final Statement of Adjustments is attached for your information. Our lawyer prepares these statements and forwards them on to your lawyer approximately 7 days in advance of the occupancy closing and the final closing date (also known as Unit Transfer Date). Please note that these sample documents contain strictly rough estimated figures only and the content applies to no specific Unit. The sample documents are provided only to give you some familiarity with the items that may appear on the Statement of Adjustments. You may wish to use these samples to make a rough estimate of your anticipated costs on Interim Occupancy Closing and Final Closing for your budgetary purposes. The attached are for GENERAL INFORMATION Only, and do not represent the specific details of the Unit you purchased. Please note that the budget will be increased by 4% as the project did not register prior to January 30th, 2020, thereby increasing your monthly common expense fees for the Residential unit, Parking and Storage fees accordingly.
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