Can I request early possession before closing?

Can I request early possession before closing?

Steal a Move: Can You Move Into a Home Before Closing in Milton, Ontario?

Quick Answer

Yes — you can request early possession before closing, but it’s not automatic. Early possession (also called early occupancy or pre-possession) must be agreed to in writing and handled through a lawyer and a clear occupancy agreement. In Milton, Ontario, local market pressure, lender rules, and legal risk shape how often sellers agree. Read on for the exact steps, sample clauses, and how to protect yourself.

Why this matters

Asking for early possession changes who controls the property before title transfers. That creates risk: liability for damage, insurance gaps, lender objections, and a lawyer’s work. If you get this right, you save time and stress on moving day. If you get it wrong, you could lose money or even the deal.

What is early possession / early occupancy?

Early possession means the buyer moves in before the official closing and title transfer. The seller still legally owns the home. The buyer lives there, but ownership and mortgage haven’t changed hands.

Other common names:

• Early occupancy
• Pre-possession agreement
• Interim occupancy
• Occupancy agreement

In Ontario, this is a negotiated extra — it does not happen automatically just because you asked.

How early possession works in Milton, ON (practical steps)

1. Ask through your REALTOR: Put the request in writing as part of your offer or as an addendum.
2. Draft an occupancy agreement: Lawyers draft or approve a clear occupancy agreement with start/end dates, fees, insurance, and liability terms.
3. Get lender consent: If the buyer will occupy before title transfer, the lender must be comfortable funding the mortgage when closing occurs. Some lenders refuse to fund while the buyer already occupies. Get written confirmation.
4. Confirm insurance: The buyer must obtain homeowner and liability insurance that covers occupancy before closing. The seller must keep insurance until title changes.
5. Deposit or holdback: Expect compensation for the seller — a daily/weekly rent or lump sum held in trust. Some deals require a damage deposit.
6. Lawyer review & escrow: Lawyers insert the occupancy agreement into closing documents and hold funds in trust if required.
7. Final walk-through & inventory: A condition report or inventory of chattels and property condition at start prevents disputes later.

Typical terms you’ll see in an occupancy agreement

• Exact start and end date/time for occupancy
• Daily or monthly occupancy fee (example: 0.5%–1% of purchase price annually prorated, or a market rent figure)
• Security deposit for damages
• Who pays utilities, taxes, condo fees if applicable
• Insurance responsibilities and proof of coverage
• Indemnity clause: buyer holds seller harmless for damage or claims
• Access for seller/inspector and move-out obligations
• Consequences if closing fails (buyer must vacate immediately)

Legal and lending considerations in Ontario

• Title remains with seller: Until the deed is transferred, the seller is still the legal owner. That affects liability and rights.
• Mortgage discharge: The seller’s mortgage stays until closing. Lenders sometimes require mortgages to be paid out at closing. If the buyer moves in early and any damage occurs, the seller’s mortgage lender may still have claims.
• Lender consent for buyer occupancy: Some lenders will not register a mortgage on a property where the buyer already occupies pre-closing without special wording. Always notify the lender early.
• OREA forms: Ontario REALTORS® use standard forms (OREA) for offers. Occupancy agreements are typically custom addenda attached to OREA forms and reviewed by lawyers.
• Title insurance: Standard title insurance policies may not protect against the risks of pre-closing occupancy. Get advice from your lawyer and insurance broker.

Milton market nuances: why this looks different locally

• Fast-moving commuter market: Milton is a hot market for Toronto commuters. Sellers in demand properties often reject requests for early possession because they prefer clean closing days.
• Inventory pressure: When homes are scarce, sellers have the leverage and can say no to early occupancy requests, or demand higher compensation.
• New builds vs resale: New-build occupancy (interim occupancy) is a different process and often governed by the builder’s contract and Tarion rules. For resale homes in Milton, early possession is negotiated case-by-case.
• Local practice: Milton lawyers and REALTORS® commonly insist on written occupancy agreements and may refuse informal verbal deals. Use professionals.

Pros and cons — be realistic

Pros for buyers:

• Move in early and avoid two moves
• Start renovations quickly
• Lock in the home earlier in your timeline

Cons for buyers:

• No legal title yet — risk if closing fails
• Insurance gaps or disputes over damage
• Lender complications
• Extra fees and obligations until closing

Pros for sellers:

• Get compensation and keep the sale
• Avoid an empty home during a slow market

Cons for sellers:

• Risk of damage before receiving full funds
• Insurance/liability exposure until closing

Risk mitigation checklist (what your agent and lawyer should do)

• Insist on a written, lawyer-reviewed occupancy agreement.
• Get lender sign-off for any pre-closing occupancy.
• Require a security deposit and an occupancy fee.
• Confirm both parties’ insurance coverage dates and limits.
• Take dated photos and an inventory of chattels at handover.
• Specify repair standards and move-out cleaning expectations.
• Define who pays for utilities, property tax adjustments, and condo fees if applicable.
• Decide what happens if closing is delayed or cancelled.

Sample occupancy clause (simple, not legal advice)

“Buyer may occupy the Property from 9:00 a.m. on May 1, 20XX until completion. Buyer will pay an occupancy fee of $X per day, payable to Seller and held in trust by Seller’s lawyer. Buyer will provide proof of insurance and a $Y security deposit. Buyer occupies at own risk and will indemnify Seller for any claims or damages occurring during the occupancy period. This occupancy is conditional on written consent from Buyer’s lender. If closing does not occur by [date], Buyer will immediately vacate.”

Always have a lawyer convert this to a formal agreement.

Negotiation tactics that work in Milton

• Offer market rent or a premium to the seller to get the yes.
• Shorten the occupancy window to reduce seller risk.
• Provide a larger deposit held in trust.
• Get lender pre-approval in writing showing they accept pre-closing occupancy.
• Use timelines: promise occupancy only when funds are in trust and a specific confirmation from lawyers.

Moving logistics — what to plan if you get early possession

• Change utilities date to occupancy start date.
• Update your insurance effective date to the day you move in.
• Arrange movers after possession start time to avoid disputes.
• Keep receipts for any immediate repairs or cleaning — you may need them for settlement.
• For condo moves, coordinate with the condo board for elevator booking and parking.

Who pays for damage or missing items discovered later?

The occupancy agreement should spell this out. Usually the buyer accepts responsibility for damage incurred during early occupancy, and both parties document the property condition at handover with photos and signed inventory. Without documentation, disputes get messy.

When sellers say no — alternatives to ask for

• Ask for a possession time on closing day earlier than normal (e.g., 9 a.m. instead of 2 p.m.).
• Ask for a short-term rental or leaseback after closing so seller can stay a few days.
• Offer paid storage or moving assistance instead of early occupancy.

Local resources in Milton

• Use a Milton-based REALTOR to negotiate local seller expectations and typical concessions.
• Consult an Ontario real estate lawyer experienced in occupancy agreements.
• Talk to your mortgage broker/lender early about pre-closing occupancy rules.

Clear call to action

If you want early possession in Milton, do not guess. Call a local REALTOR and a lawyer who knows Milton practice. I can introduce you to trusted lawyers and lenders who handle occupancy agreements every month.

Contact: Tony Sousa, Milton Realtor — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

FAQ — Closing, Early Possession, and Moving in Milton, ON

Q: Can I move in before closing if the seller agrees?
A: Yes, but only with a written, lawyer-reviewed occupancy agreement and usually lender consent.

Q: Will my mortgage lender allow early possession?
A: Some will, some won’t. It depends on lender policy and the wording in the mortgage commitment. Get written confirmation.

Q: Who pays for insurance during early occupancy?
A: The buyer must obtain homeowner and liability insurance effective the day they move in. The seller should maintain insurance until title transfers. Confirm coverage limits with both brokers.

Q: How much should I pay the seller for early possession?
A: There’s no fixed rule. Expect a daily fee, prorated rent, or a small premium over market rent. In hot markets like Milton, sellers ask for more leverage.

Q: What happens if the sale collapses while I occupy early?
A: The occupancy agreement should require you to vacate immediately. You also risk losing your occupancy fee or deposit. This is why a clear agreement and legal advice are essential.

Q: Is early possession common in Milton?
A: It happens, but it’s negotiated. In a tight seller’s market, sellers often refuse. In slower markets, they may be more flexible.

Q: Can I get keys before registration?
A: Keys can be handed over under an occupancy agreement. Do not accept keys without signed paperwork.

Q: Do I need a lawyer for early possession?
A: Absolutely. Lawyers protect you by drafting the occupancy agreement, holding funds in trust, and coordinating closing adjustments.

Q: Are there condo-specific rules?
A: Yes. Condos have move-in times, key fob protocols, parking rules, and possible administrative fees. Get condo board approval in writing.

Q: What if I damage the property before closing?
A: Most occupancy agreements put liability on the occupying party. Make sure insurance covers damage and have a security deposit for repairs.

If you’re buying or selling in Milton and you want to ask for early possession, don’t gamble. Use a local expert who negotiates these deals every day. For answers tailored to your property and lender, email Tony: tony@sousasells.ca or call 416-477-2620. Let’s plan your move with zero surprises.