Projects can't be registered until the building is up and occupiable. Until a deed is delivered, buyers are reluctant to part with their money. To break this impasse, possession is separated from ownership, producing two closings. The first, interim closing, occurs once the municipality gives its blessing to occupy. Buyers pay the balance owing and get possession of their unit, but no deed.
Final closing is postponed until the condo is registered, when a deed transfers ownership.
During interim occupancy, buyers are in legal limbo. Not being tenants, they can't pay rent. Not being unit owners, they can't be billed directly for expenses like property taxes, condo maintenance and mortgage interest. Labelling it a mortgage is misleading. That's the figure on which the interest component of my monthly occupancy fee is calculated.