Definition of "Interim use"

James Viscome real estate agent

Written by

James Viscomeelite badge icon

RE/MAX Prestige

People often ask themselves, what does interim mean? By definition, interim means a break or pause in a particular activity. As an adjective, interim means a temporary, provisional, or short-lived measure until something enduring replaces it. Interim as a noun relates to a period of the intervening time.

What does interim real estate financing imply?

Suppose you wish to obtain a short-term mortgage loan to secure a real estate transaction. You want to buy your next home, but you haven’t received the proceeds from your first home’s sale yet. In that case, you’d be applying for an interim loan

Under such circumstances, real estate interim financing defines the process of acquiring a temporary loan. Typically, interim financing is applied when homebuyers wish to compensate for the missing amount from the second property’s purchase price until they receive the earnings of their first sale. Thus, interim real estate finances translate to buying time.

A borrower can also choose interim financing because their budgetary strength is momentarily insufficient to get advantageous financial terms from a bank. They can even apply for a temporary loan with bad credit. In other instances, the borrower’s revenue-producing property, which functions as collateral,doesn’t hit the spot to get an attractive loan. Undoubtedly, interim loans presuppose paying special interests.  


Need help as a:

I'm interested to:


I work in:

Reach out to the local professionals for help
I agree to receive FREE real estate advice.

Agents, get listed in your area. Sign up Now!

Here's what you'll get:

1. Full zipcodes coverage for the city of your choice for 3 months

2. The ability to reach a wider audience

3. No annual contract and no hidden fees

4. Live customer support/No robo calls

$75 - Any City - 3 Months Coverage
loader gif

Please wait ...

I agree to receive FREE real estate advice
I agree with Terms & Conditions and Section 5-5.9.

Interim describes a property’s temporary use.

Interim use in real estate terminology defines a property’s temporary use until local authorities reach a formal zoning ordinance. In other words, an interim use is a real estate’s nonconforming use. 

What lies behind an interim occupancy agreement?

Suppose the new homebuyers will want to move into their new house sooner than the close of escrow. At the same time, the seller is still the property’s legal owner. Are the new occupants allowed to do that? They can reach a consensus and settle with an interim occupancy agreement. According to this contract, the seller agrees with the buyer moving in earlier. Like a lease’s structure, the interim occupancy agreement outlines each party’s responsibilities and the buyer’s extra charges for the period before the closing day

Can interim occupancy agreement backfire?

However, the seller’s expert local real estate agent must be on top of their game and protect their client’s interests. Unfortunately, unforeseen accidents can occur that potentially ruin the property or valuables within said real estate. Let us stress one fact! Though parties sign the agreement, the subject or endurer of the financial loss can shift theirresponsibility to the other party during this interim period.

Accidents during escrow can be messy. For example, imagine a buyer hoping to move to the new home two weeks before escrow. However, the seller agrees for the buyer to carry only their assets into the new property’s basement. Naturally, they sign the interim occupancy agreement beforehand. Then comes the kicker. A water pipe bursts on the second story, inundating the entire premise and damaging the buyer’s stored assets. Now, they intend to sue the seller. 

Play it safe and avoid interim occupancy!

Let’s remind you that even more severe misfortunes can happen, resulting in deaths. 

On the one hand, the legally-binding agreement mentioned before comes in handy, explaining all the clear accountability. On the other hand, many civil litigations ensue due to unpredicted accidents. For this reason, and though it may seem harsh, sellers should hand over the keys when the buyer becomes the legit homeowner. It’s called playing it safe.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.


Popular Real Estate Terms

Voluntary giving up of a right of a lien, usually on a temporary basis. The waiver may be explicitly stated or implied. An example is when a lender waives its right of lien against ...

(1) Licensed broker employed to represent and match both buyers and sellers. Usually employs several real estate agents in an office. (2) Commission or fee charged to sell real estate or ...

Levied on those benefiting from the installation of a sewer. ...

A covenant real estate definition covers covenants in the context of residential real estate, condominiums, neighborhoods, or housing co-ops that are ruled by an agreement of the owner to ...

Real estate sales contract where possession and use is provided to the buyer, but the deed is kept by the seller until the full purchase price is met whereupon the title is placed in the ...

The minimum age required for legal competency ( in most states 18 years). ...

Considerations used by lenders in appraising a prospective homebuyer' credit application. They are: Character, Capacity (cash Flow), Capital, Collateral and Conditions (economic status) ...

Metal or wood channel attached immediately below or along the eaves of a building for the purpose of channeling rainwater away from the structure. The gutter prevents rain runoff from ...

Laws enacted by every state governing the activities and requirements of real estate salespeople and brokers. Upon satisfying the necessary age and residency requirements and satisfactorily ...

Popular Real Estate Questions