6 HOMES The Ottawa Sun n Saturday, auguSt 19, 2017 HOMES Interim versus final closing for a new build condominium may still be under construc- standing balance of the pur- home insurance, would be pied, the buyer must com- tion during the occupancy chase price. (For exam- additional to this amount. plete interim closing and Jacques Robert period. Once the condo- ple, if the purchase price If the buyer wants to avoid begin paying occupancy minium project is declared, is $350,000.00 and the paying the interest on the fees. The buyer is not able to the individual units will be buyer has paid deposits of outstanding balance of the defer until the final closing in REAL ESTATE recognized with the Land $50,000.00, the outstand- purchase price, the buyer order to avoid paying occu- Registry Office and title can ing balance is $300,000.00. will have to notify the builder pancy fees altogether. LAW be transferred to the buyer, The interest is the Bank of within the 10-day rescis- Once the Condominium known as final closing. Canada 1-year conventional sion period after signing the has been declared and regis- When a buyer signs an tion. Until the condominium In between the interim mortgage rate for the month agreement that the buyer will tered with the Land Registry Agreement of Purchase and project has been declared, occupancy closing and the that the buyer takes posses- provide the remainder of the Office, the buyer can receive Sale for a new build condo- there are no recognized units final closing, the buyer will sion. If the interest rate is purchase price in cash at the title to the unit they have minium unit, the first ques- to own. In the event that the pay occupancy fees to the 3%, the interest payable is interim closing date, and will purchased, through the final tion to the sales represent- units are ready to live in, but builder. These fees will not be $750.00 per month.) not be needing a mortgage at closing. This will require the ative should be whether the condominium project is allocated to payments due at Therefore, the monthly the final closing date. If the payment of the balance of the condominium project not declared, no unit own- the final closing. occupancy fee in this exam- buyer provides the remain- the purchase price, as well as has been declared with the ership can be transferred to ple would be $200.00 (esti- der of the purchase price, the any adjustments. Land Registry Office. A con- the buyers. Instead of hav- These occupancy fees are mated common expenses) buyer will only have to pay dominium project has been ing units sit empty until the a monthly amount calcu- plus $300.00 (estimated the estimated property taxes co-authored with Robin declared when the Decla- condominium project is lated from: monthly property taxes) and the estimated common Goski, associate lawyer. ration is registered with the declared, the builder will 1. The estimated common plus $750.00 (interest on expenses per month in occu- Land Registry Office. The allow the buyer to move into expenses for the unit per outstanding balance), for a pancy fees. Jacques Robert is an Ottawa Declaration is the found- the unit under interim occu- month. total of $1250.00 per month. In the Agreement of Pur- real estate lawyer. For more ing document of the Cor- pancy closing. As well as 2. The estimated property Any other costs that are the chase and Sale, the builder information, visit www. poration, similar to a Con- other units, building ameni- taxes per month for the unit. responsibility of the occu- will stipulate that once the jacquesrobert.com stitution for the Corpora- ties and common elements 3. The interest on the out- pant, such as utilities and unit is ready to be occu- RENTAL GUIDE Fee for changing units within same apartment is allowed, providing it is correctly applied

By DIckIE & LyMAn LLP charge me a transfer fee? month tenancy). A tenant building, a landlord pays for vacancy decontrol. Many rent in the first month of a who practice landlord/tenant law may also reach an agree- such repairs to two units as other provinces, other coun- new tenancy. If the $600 is and other areas of law A: While there are good ment with their landlord to opposed to one. Also, if you tries and U.S. states have no called part of the rent for the reasons for the landlord terminate their tenancy on move into the vacant unit, rent control at all. In that sit- first month, then it is legal. Q: I have been living to want to charge that fee, shorter notice. It is common rather than someone new uation, landlords and ten- However, a section in in a two-bedroom apart- whether it is legal depends enough for a tenant to pay a to the building, the landlord ants negotiate a new rent at the Residential Tenancies ment for several years with on what the fee is called. fee to the landlord in order to may well lose a month’s rent every tenancy renewal. How- Act held over from the days my son. My son recently Although you will be mov- end their tenancy early, and waiting to rent your current ever, in Ontario, free-market before vacancy decontrol moved out and I asked my ing within the same build- that is legal. unit. rent negotiation only takes provides that a landlord may landlord if I could move to ing, from a legal perspec- Just as with tenants who As to the rent for the new place when a tenant rents a not charge a separate fee to a one-bedroom apartment tive you will be moving into move into a building, when unit, you and your land- new unit. a tenant as a condition for in the building to save some a new unit. You need to ter- tenants move between units lord are able to negotiate a Since you will be moving granting a tenancy. There- money. The landlord said minate your current tenancy within a building, landlords new rent. Legally, the rent to a new unit, the guideline fore, a fee described as a fee that they are willing to let and enter into a new tenancy usually incur expenses. For you pay now for your cur- is not relevant to you. For or charge for granting a new me move, and I would save agreement for the new unit. example, your landlord will rent unit is not relevant, nor you to get the new one-bed- tenancy would not be legal. about $150 per month. But Normally, a tenant needs to likely pay for minor repairs to is the amount that the pre- room apartment you and the What would be legal would they said they would charge give their landlord 60 days’ remedy wear and tear in your vious tenant paid for the landlord need to agree on be a premium for the first me a one-time transfer written notice to the end of current unit. When an exist- lower unit. The setting of a the rent you will pay for it. month or an agreement to fee of $600 to allow me to their lease (or to the end of ing tenant moves to a newly new rent on unit turnover In negotiating a new rent, a pay the $600 to end your cur- move. Are they allowed to any month in a month-to- vacated unit in the same between tenants is called landlord can charge a higher rent tenancy early. Please send questions for rental experts or suggestions for topics to: Rental Guide, c/o Advertising Features, Ottawa Citizen, 1101 Baxter Rd., Ottawa, K2C 3M4 or by email to: [email protected]. Selected questions will be answered in future columns. For immediate assistance call the Landlord Tenant Board at 1-888-332-3234