Can I get early possession of a home?
Can I get early possession of a home? — Yes, but only if you negotiate it the right way.
Quick, blunt answer
Early possession is possible, but it’s not automatic. It requires clear agreement, legal paperwork, money, and protections. Without those, sellers risk liability, damage, and confusion on closing day.
This post explains how sellers in Georgetown, ON can offer early possession safely, what to charge, what paperwork to use, and how to avoid nightmares on move-out and closing day.
Why early possession matters in Georgetown real estate
Georgetown, ON is a growing market. Buyers want flexibility. Sellers want predictability. Early possession bridges the gap — it helps buyers move in sooner, and it can close deals faster. But if you’re a seller, giving keys early without a solid plan is how you lose leverage and money.
Be direct: the only sellers who can offer early possession without risk are the ones who use a contract, get paid, and protect themselves with insurance and clear move rules.
The realities: closing date vs. possession date
- Closing date: the day the purchase funds and documents transfer legally at the lawyer/notary. Title changes hands.
- Possession date: when the buyer can physically enter the home.
In many Ontario deals the dates are the same. But they can differ. Many buyers ask for possession early (days or weeks) to move in. As a seller, you decide whether to allow it — and on what terms.
What sellers must never do: assumptions
Never assume early possession is harmless. Common mistakes:
- Handing over keys before paperwork is signed.
- Letting buyers move while closing funds haven’t cleared.
- Skipping an interim occupancy agreement.
- Relying on a handshake about repairs, utilities, or damages.
Those lead to liability for injuries, unpaid utilities, damage disputes, and title complications.
How to structure early possession — the step-by-step playbook
- Say yes or no up front
Make your stance clear in showings and negotiations. If you allow early possession, display the terms you require: occupancy fee per day, security deposit, insurance proof, and written agreement.
- Use an Interim Occupancy Agreement (IOA)
This is non-negotiable. The IOA outlines:
- Start and end of occupancy
- Daily occupancy fee or fixed amount
- Security deposit for damage
- Who pays utilities, property taxes, condo fees (if applicable)
- Insurance and liability clauses
- Indemnity for the seller
- Move-in rules and access for the seller until closing (if needed)
Your lawyer prepares or reviews this. Don’t sign anything without legal eyes on it.
- Charge an occupancy fee — and make it worth it
Occupancy fees protect you. Common methods:
- Daily fee equal to market rent for similar properties
- Daily fee based on annualized interest and carrying costs (mortgage, taxes, condo fees) plus margin
- A flat amount negotiated in the deal
A practical rule: charge what a property manager would charge for short-term rent. That puts the buyer on the hook for the fair cost of occupying.
- Require proof of insurance and a security deposit
Buyers must show home insurance that covers them and names the seller as additional insured or loss payee. Collect a security deposit to cover damage or unexpected cleaning.
- Clarify utility transfers and keys
Put utility transfer dates in the IOA. Decide who pays utilities during occupancy. Require the buyer to provide meter readings on move-in and move-out.
- Walkthrough before they move in and at move-out
Document the condition with photos and a signed checklist. This protects both sides when it comes to damage claims.
- Lawyer involvement on closing day
Even during early possession, closing must be handled by lawyers/notaries. Ensure your solicitor knows about the IOA and the occupancy timeline so funds and title transfer aren’t delayed.
Special considerations for sellers in Georgetown, ON
- Local market: Georgetown sits in Halton Hills. Buyers are often commuting to Toronto or looking for family-friendly space. Flexibility is attractive but so is certainty.
- Seasonality: Summer and late spring moves are busiest. Early possession requests spike. Be firm on occupancy fees during peak moving season.
- Condo buildings vs detached homes: Condos usually have stricter move-in rules. You’ll need to coordinate with condo management for early access and moving elevator bookings.
- Municipal and tax adjustments: Confirm how property tax adjustments and utility billing will be prorated during early possession. Your lawyer should handle municipal account changes.
If you’re a seller in Georgetown, leverage local market demand: set a clear fee and you’ll convert more offers while protecting yourself.
How to calculate a fair occupancy fee (practical examples)
Example A — Short window (7 days):
- Market short-term rent for a similar Georgetown house: $2,100/month = $70/day. For 7 days = $490.
Example B — Longer interim (30 days):
- Monthly rent market value $2,100 + 10% premium for short-term = $2,310.
- Or calculate pro-rated carrying cost: annual carrying cost (mortgage + taxes + condo fees) divided by 365, times the days.
Add a security deposit equal to one week’s fee or a fixed $1,000 minimum. Make the fee payable in certified funds before keys change hands.
What to include in the written occupancy clause (must-haves)
- Names of buyer and seller
- Address and unit description
- Start and end dates
- Occupancy fee and payment terms
- Security deposit amount and conditions for its return
- Insurance requirements (buyer to maintain homeowner’s insurance and name seller as additional insured)
- Liability and indemnity language
- Maintenance and repairs responsibility
- Access rights for seller for inspections (if needed)
- Consequences for overstaying (daily penalty, eviction process)
- Signature lines and witness or lawyer acknowledgement
Your lawyer should draft or review this clause. If your listing agent suggests a one-paragraph note in the purchase contract, insist on a full IOA.
Contingency plans: what if closing falls through?
If the sale collapses while the buyer already lives in your home, you need clear remedies in the IOA:
- Immediate removal and forfeiture of occupancy deposit
- Right to hold buyer liable for damages and unpaid occupancy fees
- Specific eviction process to follow Ontario law
Without clear clauses, you risk a long, costly legal process to remove occupants.
Moving logistics that sellers should control
- Schedule final walkthrough for the buyer before their early move-in and again before closing.
- Require movers to provide insurance certificates for damage during move-in.
- Keep a set of original keys until closing, and log any copies given.
- Hold the seller’s personal items in a locked room or storage until fully moved out.
For sellers in Georgetown, arrange local services (reliable movers, locksmiths, utility contacts) ahead of time. Good local vendors prevent headaches.
Negotiation tactics for sellers who want to grant early possession without losing leverage
- Make early possession a seller-favouring concession: charge a fair fee, require certified funds, and shorten the window.
- Use the occupancy fee to offset seller carrying costs and to punish overstays.
- Tie early possession approval to proof of insurance and a refundable security deposit.
- If a buyer insists on free early possession, counter with a price increase or a strict short list of allowed days.
Be firm. Buyers will accept sensible terms if it secures move-in flexibility.
When NOT to grant early possession
- Buyer refuses insurance or deposit requirements
- Buyer wants to occupy before closing funds are confirmed
- The home has significant items still being removed by seller
- You face potential liability (hazardous conditions, unfinished repairs)
In those cases, say no. It’s better to stay safe and sell clean than to accept a risky early move-in.
Bottom line for Georgetown home sellers
Early possession can be a tool to close quicker and make buyers happier — if you control the terms. Use an Interim Occupancy Agreement, charge a fair occupancy fee, require insurance and a deposit, and get your lawyer involved. That protects your money, your property, and your timelines.
If you want to turn early possession into a negotiation advantage, you need a firm, repeatable process. That’s how local sellers close deals faster and sleep at night.
Frequently Asked Questions (FAQ)
Q: Can a buyer move in before closing in Ontario?
A: Yes — but only with a written agreement (IOA) that protects the seller. Never hand over keys without documentation and funds.
Q: Who is responsible for insurance during early possession?
A: The buyer should provide proof of homeowner’s insurance that names the seller as additional insured. The seller should maintain their own policy until title transfers.
Q: How much should I charge for early possession in Georgetown?
A: Common approaches are daily market rent, or a fee covering carrying costs plus a premium. Practical example: $60–$90/day depending on property and season. Always get certified funds up front.
Q: What if the buyer overstays after closing falls through?
A: A clear IOA must state remedies: forfeiture of deposit, daily penalties, and eviction rights. Consult your lawyer immediately.
Q: Do condo buildings allow early possession?
A: Condos often have strict rules. You must coordinate with condo management and include their move protocols in the IOA.
Q: Can I negotiate early possession as a seller concession?
A: Yes. Use it to get higher price, faster closing, or a larger deposit. Make every concession earn you value.
Q: Who should prepare the occupancy agreement?
A: Your lawyer or real estate lawyer should draft or review it. Don’t rely solely on templates from buyers or agents.
Q: What local steps should Georgetown sellers take?
A: Line up local movers, locksmiths, and municipal account contacts. Know peak moving seasons and set your fees accordingly.
Want a simple, enforceable occupancy agreement tailored for a Georgetown sale? I draft standard clauses sellers use to get paid and protected. Contact Tony Sousa at tony@sousasells.ca or 416-477-2620. Visit https://www.sousasells.ca for local seller resources and vendor recommendations.
Disclaimer: This post provides general information about real estate practices. It is not legal advice. Consult your lawyer for binding legal documents and jurisdiction-specific rules.
