The second stage of the closing occurs after the condominium’s declaration and description have been registered in the land titles office. At this “final closing,” payment to the seller is completed, title is transferred to the buyer, the buyer’s mortgage is registered, and further documents, including a status certificate, will be exchanged by the parties. The interim occupancy agreement terminates when the final closing is completed.
Why two stages? Why is the two-stage closing procedure required? There can be a lengthy delay between the time that the first units become ready for occupancy at the start of the first stage, and the date that the land titles office is ready to begin unit registrations (the second stage). The builder will not want these completed units sitting idle because the builder is paying the carrying costs of them. The interim closings therefore begin as soon as the common elements and at least some of the dwelling units are approved for occupancy.