The Promise to Purchase

Dear readers,

Whether purchasing a new or used home, a condominium or a piece of land, any type of real estate transaction is the result of an agreement between two (2) parties, duly documented in a promise to purchase containing the general conditions pre-established between the buyer and seller.

The seller, generally a member of APCHQ (Association provinciale des constructeurs d’habitation du Québec) or ACQ (Association des contracteurs du Québec), should provide all the necessary forms related to the sale of a new home.  The general conditions listed in these forms are determined by the above mentioned associations in accordance with several law policies and the Civil Code of Québec.  Notaries can also provide the appropriate forms to be used in this case.

I invite you to read and carefully examine these forms to get accustomed to their content.  For example, the specific clause stating the sales price, must be properly worded and contain applicable GST and QST taxes once tax credit refunds have been applied between parties.

According to the law, it should be noted that all new home purchasers can take advantage of a release clause applicable up to ten days following the signature of a preliminary contract (article 1785 c.c.q.) by paying a maximum amount of .5 per cent (.5%) of the sale price.

As for the titles provided by the vendor, it would be wise to request a recent land surveyor reflecting the current situation of the property.  For example, if the property was under construction at the time of promise to purchase, it would be wise to ask that a certificate of location showing the completed dwelling, be available by the signing of the deed of sale.

For vacant lots, a technical subdivided or part of an original lot.  For a renovated lot (cadastral renovation) a plan of the lot from the registry office should be sufficient.  For the sale of used homes, documents should be provided by the real-estate agents involved in the sale or by the notary if the latter is unavailable.

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.