The Necessary “Steps” to Finalizing a Notarized Contract
Whether purchasing a new or used home, a condominium or a piece of land, any property deal requires certain “steps” before the acquisition can be notarized.
After making several visits to different houses or sites of your choice (residential projects, condominiums, or vacant land), and deciding which selection best suits your needs, you will enter into the negotiation phase.
Whether you are being assisted by a legal adviser or a real estate broker (representing an Agency), negotiations must be undertaken in order to reach a reciprocal agreement between parties, to everyone’s satisfaction.
The signing, for a new home, of a promise to purchase, is available on a special form provided by the “APCHQ” and/or by the “ACQ” or on any other form that includes all the required clauses in compliance with the Civil code of Québec. This promise to purchase will contain all the clauses especially enacted under the authority of article 1785 c.c.q. by paying a maximum amount of (0.5%) of the sale price and pursuant to the Civil code of Québec with regard to the right of revocation of the minimal delays (10 days) required during a transaction involving a new house (residential and/or condominium).
For the sale of a piece of land, the promoter will be able to use a standard form indicating various conditions foreseen in the sale, and especially the addition of taxes (GST and PST) WHICH WILL BE CHARGED TO THE EVENTUAL BUYER. However, there is no tax in the case of a private sale of a piece of land by physical person (not acting as a promoter).
If this promise to purchase contains specific conditions such as being:
- Subject to an evaluation by a mortgage creditor to determine the value of the immovable, in order to approve the loan;
- Subject to an inspection of the building to the satisfaction of the buyer;
- Subject to the sale of another building prior to the conclusion of our deal (clause of 72 hours…);
These conditions should be achieved before going further in the file.
After the conditions have been met, the vendor and/or his representative will send title deeds, including the certificate of location of the building, to the notary. The hypothecary creditor will forward the necessary documentation for the preparation of the mortgage.
The notary will examine the titles of the entire file to the complete satisfaction of the buyer. If there is something wrong it will have to be corrected prior to the deed of sale. It is customary that the vendor, who is a contractor, appoint his notary given that he uses the same legal adviser for the entire project. For the purchase of land, the promoter generally allow the buyer to chose his own notary. In any case, the buyer should hire someone who will do his best to give him satisfaction.
For more information, don’t hesitate to contact me at 450-227-7077 cell.514-688-3131 or by email at info@lecourtierdunord.com
 Michel Labrèche Notaire |
About the Author:
Me Michel Labrèche. This column was prepared by Mtre Michel Labrèche, notary, practising in Saint-Sauveur-des-Monts and Laval since 1983. Me Labrèche is also the president of Domaine le Sanctuaire des Lacs. For more information please see www.monlac.com. |