Situations Likely to Setback a Real Estate Transaction

Real estate transactions such as the sale or the financing of a property are subject to a wide number of formalities and require drawing up numerous documents.  There are several situations likely to slowdown the processing of a file.  Here are some of them.

Documents

It’s very important that the vendor supply the buyer and his notary with all the proper documents relative to the property such as former ownership titles, a certificate of location, tax and heating accounts, rental contracts, guarantees, etc. as well as all pertinent documents that the vendor has agreed to provide or all proof of fulfilment of the undertaking as per the promise to purchase.

Mortgage

The proof of financing with a lender or a letter of intension does not necessarily mean the notary has all the information needed to prepare the mortgage deed before the deed of sale.  Make sure your lending institution forwards all the necessary documents to your notary, in due time,  so that he may proceed with the mortgage preparation.

Certificate of Location

This document takes into account the overall plan of the premises on a cadastral level.  The certificate may be irretrievable, non-existent or outdated perhaps due to its age, or to changes that may have taken place since it was done.  Certain lending institutions require a new certificate of location when the existing certificate is over ten years old, even if the certificate is still an accurate description of the property.  Make sure you plan ahead; the land surveyor will need a reasonable amount of time to do the work.

Marital Status and Family Assets

The notary must also verify the legal status of each person to be included in the deed.  Do not assume anything when it comes to information concerning your personal profile.  Supply as soon as possible all information relative to your marital status, may it be single (never married), divorced, in the midst of a divorce, in a state of legal separation, or married under a different regime ( separation of property, community of property, partnership of acquests), with or without a marriage contract.  The properties used as family residences may be subject to certain restrictions.  A tardy declaration of your true situation could set-back the transaction or result in far-reaching implications.

Defect of Titles

The notary must make sure the present owner can hand over a clear title to the new property owner by examining all previous transactions regarding the property (chain of title).  In certain cases, this exam will reveal irregularities (defects) to which the notary must remedy.  The seriousness of the defect may taint the property ownership considerably and setback the closing.  Since the buyer wishes no less than to acquire a clear title, the choice of a resourceful notary is very important.

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.