Interim Occupancy on a Presale: Living There Before You Own It

On some presale projects the building is finished enough to live in before the paperwork is finished enough to transfer title. Buyers move in, pay the developer monthly, and watch their mortgage balance sit exactly where it was.

Why the gap exists

A presale strata unit cannot have title transferred to you until the strata plan is registered at the Land Title Office.

Construction finishing and registration finishing are two different events. When the first happens well before the second, a developer may allow buyers to occupy in the meantime. That window is interim occupancy, and you pay an occupancy fee during it.

Whether this applies at all depends on the project and the contract. Plenty of BC presales complete without an occupancy period. Read your disclosure statement and purchase agreement rather than assuming either way, and have your lawyer walk you through the relevant provisions.

The fee is not a mortgage payment

This is the misunderstanding worth clearing up first.

An occupancy fee compensates the developer for you living in a home you do not yet own. It does not reduce a loan balance, because there is no loan yet. Your mortgage begins at completion, when title transfers and your lender advances funds.

So a buyer in a long occupancy period is paying real money each month toward no equity. That is not a scandal, it is the nature of the arrangement, but it belongs in your budget as a housing cost rather than a mortgage payment. Our total monthly cost guide covers how to think about the full picture.

Confirm who pays what during the window

Ask this in writing, because the amounts are not small.

Property taxes, strata fees, and utilities during the interim period all have to land on someone. The contract decides who. Our strata fees guide covers what those fees fund once you are an owner, and the first-year budget guide covers what new owners tend to underestimate generally.

A buyer who budgeted for one number and is paying three is a buyer under avoidable stress in their first months in a new home.

Your rate hold and a moving completion date

Presale contracts typically give a developer latitude on timing, with an outside date beyond which things change.

That latitude matters to your financing. A rate hold has an expiry, and our rate hold guide covers how those periods work. If completion moves past your hold, you are financing at whatever rates exist then rather than the ones you planned around.

Ask your mortgage broker how the outside date in your specific contract interacts with what they can hold for you. Ask your lawyer what the delay provisions actually permit. Both conversations belong before signing, and our presale buying guide covers the wider set of questions.

Occupancy can start your warranty clock

Here is a detail buyers rarely connect.

BC Housing's home warranty insurance page states that for speculative detached homes and strata units, coverage begins at first occupancy or transfer of title, whichever comes first. BC Housing also notes that coverage stays with the home rather than the owner.

So moving in during interim occupancy can start the 2-5-10 periods running. That matters because the shortest coverage windows are the ones most likely to expire before you notice a problem. Our new home warranty guide covers the coverage periods, and the warranty claim guide covers what to do when you find something.

Document the deficiency walkthrough

Before occupancy you should have a walkthrough where deficiencies are recorded.

Do it in writing, item by item, with photographs. That list is the basis for what gets addressed, and a verbal assurance from someone on site is not a record. Our deficiency walkthrough guide covers how to approach it and what buyers typically miss.

Take the time. A new home is not a finished home, and the walkthrough is where the difference gets written down.

The rescission rules are different here

Buyers sometimes assume BC's three-business-day rescission period applies to their presale. It does not.

Presales fall under the Real Estate Development Marketing Act, which carries a separate seven-day rescission right for developers selling units before completion. Our rescission period guide covers the distinction between the two regimes.

Know which one applies to your contract, because the windows and the mechanics differ.

We are agents rather than lawyers, and none of this is legal advice. Presale contracts and disclosure statements should be reviewed by your lawyer before you sign.

Key takeaways

• Interim occupancy is living in a presale home before the strata plan is registered and title transfers.
• The occupancy fee is not a mortgage payment and builds no equity.
• Confirm in writing who pays property taxes, strata fees, and utilities during the interim period.
• BC Housing states strata unit warranty coverage starts at first occupancy or title transfer, whichever comes first.
• Presales fall under REDMA's seven-day rescission right rather than the three-business-day home buyer rescission period.

Frequently Asked Questions

What is interim occupancy?

Interim occupancy is a period where a presale buyer occupies the home before title transfers, because the building is finished enough to live in but the strata plan has not yet been registered at the Land Title Office. A presale strata unit cannot have title transferred until that registration happens, so when construction finishes well before the paperwork does, a developer may allow buyers to move in during the gap. During that window the buyer pays the developer an occupancy fee rather than a mortgage payment, since there is no loan yet on a home they do not legally own.

Does interim occupancy happen on every presale?

No. Whether an interim occupancy period applies depends on the specific project and the contract, and plenty of BC presales complete without one at all. Interim occupancy only comes up when a building is finished enough to live in before the strata plan is registered at the Land Title Office, which is not the case on every project. Read the disclosure statement and purchase agreement rather than assuming either way, and have a lawyer walk through the relevant provisions before you sign.

Is the occupancy fee a mortgage payment?

No, and this is the part that catches buyers. The occupancy fee compensates the developer for a buyer living in a home before title has transferred, and it does not reduce any loan balance, because there is no mortgage yet on a home the buyer does not legally own. The mortgage only begins at completion, when title transfers and the lender advances funds. A buyer in a long occupancy period is paying real money each month toward no equity, so it belongs in the budget as a housing cost rather than as a mortgage payment.

When does my mortgage actually start?

A presale mortgage starts at completion, when title transfers to the buyer and the lender advances the funds, not when the buyer moves in during an interim occupancy period. The rate hold arranged earlier has to still be valid at that completion date, which is why a moving completion date matters to financing. Presale contracts typically give the developer latitude on timing, with an outside date beyond which things can change, so a rate hold arranged today may not survive a completion that moves further out than planned.

Who pays the property taxes and strata fees during occupancy?

Responsibility during an interim occupancy period depends on the specific contract, so confirm in writing who is responsible for property taxes, strata fees, and utilities during that window rather than assuming the developer covers them. These are real monthly amounts on top of the occupancy fee itself, and a buyer who budgeted for one number and ends up paying three is a buyer under avoidable stress in their first months in a new home. Ask this question before signing rather than after moving in.

Can the developer change my completion date?

Presale contracts typically give the developer latitude on timing, and outside completion dates beyond which things can change are common. A lawyer should walk through those provisions before signing, because a shifting completion date affects both a buyer's rate hold and their moving plans. If completion moves past a rate hold's expiry, the buyer is financing at whatever rates exist at that later point rather than the rate they planned around, which is why this question belongs in the pre-signing conversation with a mortgage broker as well.

Does the 2-5-10 warranty start at occupancy?

BC Housing states that for speculative detached homes and strata units, 2-5-10 warranty coverage starts at first occupancy or transfer of title, whichever comes first. That means moving into a presale during an interim occupancy period can start the warranty clock running before title has even transferred, which is a detail buyers rarely connect. Since coverage stays with the home rather than the owner, this timing matters even more on a unit that later changes hands, because the shortest coverage windows are the ones most likely to expire before an issue is noticed.

Do I get a deficiency walkthrough before occupancy?

Before moving into a presale during an interim occupancy period, a buyer should have a walkthrough where deficiencies are documented item by item, in writing, with photographs. That list becomes the basis for what the developer addresses, and a verbal assurance from someone on site is not a record a buyer can rely on later. A new home is not the same as a finished home, and the walkthrough is where that difference gets written down before the buyer takes possession.

Is the rescission period the same on a presale?

No. BC's three-business-day home buyer rescission period excludes presales entirely. Presale contracts instead fall under the Real Estate Development Marketing Act, which gives buyers a separate seven-day rescission right when purchasing units before completion. Buyers sometimes assume the three-day rule applies to their presale contract, and it does not, so knowing which regime governs a specific purchase matters because the windows and mechanics between the two differ.

What should I ask before signing a presale contract?

Ask whether there is an interim occupancy period on this specific project at all, since many BC presales complete without one. Ask what the occupancy fee is, what it covers, and who pays property taxes, strata fees, and utilities during that window. Ask what the outside completion date is and how a delay affects a rate hold's expiry. And ask whether occupancy starts the 2-5-10 warranty clock, since BC Housing ties coverage to first occupancy or title transfer, whichever comes first.

Sources

• Home warranty insurance on new homes, BC Housing
• Real Estate Development Marketing Act, BC Laws

Verified September 12, 2026. General information only, not legal advice. Have your lawyer review a presale contract and disclosure statement before signing.

Related FRIVE guides

• Buying a presale, the wider set of questions
• Deficiency walkthrough, how to document what is unfinished
• New home warranty, the 2-5-10 coverage periods
• Rate holds, why a moving completion date matters
• Presale vs resale, the underlying choice

Next Steps: Work with FRIVE

If you are weighing a presale, the occupancy question and the outside completion date are two of the terms worth understanding before you sign anything.

Start a conversation with the FRIVE team and we will go through the contract questions with you, or browse current Fraser Valley listings.