Purchasing a condomunium unit and signing the required documents (mortgage and deed of sale) are dependent on several factors, including the approval of plans by the municipality and the Cadaster Registry Service (government).

Because of these approval times, which are often unpredictable, sometimes during the cadastral planning in creating the lot numbers of units can be filed in the land register, thus delaying the publication of the declaration of co-ownership. Therefore, even if the construction of the building is nearing completion, the signing of the deed at the notary can not take place on the date that was originally scheduled to take possession of the apartment by the buyer .

In this hypothesis, and if the buyer wants or needs to still occupy the apartment, and, pending the completion of the final sale (signature of the notarial deed of sale), the sponsor-vendor requires a contract to be signed between the parties: it is the Pre-occupancy Agreement.

This agreement should include, at minimum, the following elements:

• The right to the prospective purchaser to occupy the apartment pending the signing of the deed at the notary, even if it has not signed the deed;

• An explicit recognition that the agreement does concern in any case, the transfer of ownership;

• A ban on rent promise and a commitment of no tenant-buyer will occupy the apartment as the condominium has not been published in the Office of the District Registrar;

• A commitment by the prospective purchaser to enjoy the apartment and use the public areas of the building in accordance with the provisions of the draft declaration of co-ownership;

• A term (period end of the Convention) which coincides with the signing of the deed;

• In case of failure of the sale, the undertaking to the effect that the premises will be refurbished by the prospective purchaser at his own expense or quoted verbatim by the promotor-seller, with or without financial compensation.

Although it may be free, the pre-occupancy of a unit will be based on financial compensation. This corresponds, in general, to what the buyer would pay if he was already co-owner of the unit. It will often be establish considering the cost of the property taxes (municipal and school), a share of maintenance costs and building management, and the amount corresponding to a monthly payment of interest calculated on the amount that the purchaser must pay to satisfy the balance of the purchase price.

The Pre-occupancy Agreement may include any other conditions of occupation or financial arrangement. To avoid any misunderstanding, it is in the interest of all parties to clearly specify their respective obligations.

WARNING! Do not sign such an agreement inadvertently. Be sure to get good advice!

WARNING ! The developer's insurance does not protect your personal belongings and your civil liability. It is necessary to take out casualty insurance for the duration of the concern. Be sure to be well insured.

Determination of common (factsheet) Preliminary contract (factsheet) Location certificate (factsheet) What you should know ... so as not to delay your purchase / sale (chronic)