Closing the sale at a notary’s office
When an offer to purchase has been accepted and all of the conditions met, all that is left to do is to meet with the buyer at a notary’s office to make the transaction official. To draft the deed of sale, the notary will need the following documents:
- The completed and signed Offer to Purchase
- The previous deed of sale, from when you purchased the property
- The certificate of localisation
- The co-ownership agreement (if selling a condo)
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The municipal and school tax bills
Who pays what?
The notary is chosen by the buyer. The buyer pays the notary’s professional fees and charges for the deed of sale, its publication and the copies prepared for the parties and the mortgage lender. The seller pays the fees for discharging their mortgage, among other things.
The buyer’s share
In addition to the notary’s fees, the buyer must pay for the following:
- Title review
- Analysis of the certificate of localisation
- File opening, closing and storage
- Copies of the deed of sale for all parties
- Adjustment and apportionment preparation (municipal and school taxes, rent, condo fees, etc.)
The seller’s share
The seller will also have certain things to pay pertaining to the transaction. In addition to the mortgage discharge fees, the seller must issue cheques for:
- Land surveyor’s fees (if the seller hasn’t already paid for the new certificate of localisation)
- Payment of arrears in municipal or school taxes, and where applicable, condo fees
- Any other cheques requested by the seller, other than for the balance to the seller
- Management fees for the trustee account for the cheques issued by the notary
- Deposit of the buyer’s cheque to the seller’s bank, or electronic transfer or cheque certification if required by the seller
- Any other just and reasonable fees established by the executing notary for the specific real estate file
If it takes more than one appointment to sign the deed of sale, this may result in additional fees. These fees must then be paid by the party who requested the additional steps and who benefits from them.
Lastly, you should know that there is nothing preventing the buyer and seller from agreeing on a different way of paying the fees and costs involved.
The notary’s role
In Quebec, all real estate transactions must be finalized by a notary. The notary opens the file once they receive the Offer to Purchase signed by the seller and the buyer.
While not every notary follows the exact same procedure, the closing of the sale will be carried out as follows:
1. Examining titles and other documents
The acting notary will examine the titles to ensure that the seller is indeed the owner and that there are no charges (e.g. servitude or mortgage) affecting the property. Using the certificate of localisation, the notary will also ensure that the property respects the applicable laws and regulations, particularly zoning regulations. The notary will also ensure that the land dimensions are accurate and that there is no encroachment. The notary will also check that property taxes have been paid.
2. Drafting the deed of sale
The purpose of this step is to formalize the purchase of the house. The notary must specify the terms and conditions essential to protecting your rights.
3. Stating adjustments and disbursements
Certain charges that affect the property (e.g. property taxes, rent, condo fees) will require adjustments. The notary prepares the adjustments for each party.
4. Securing the transaction
The notary’s role in the transaction is also to secure the proceeds of the sale and the reimbursement of any mortgage. When you sign the deed of sale at the notary’s office, you are assured that the money for your property is no longer in the buyer’s hands, but in the notary’s trust account. You receive it after the deed of sale is published in the land register.
5. Registering the sale to the Land Register of Quebec
After the deed of sale is signed, the notary will publish it at the registry office of the registration division to publicize the buyer’s title of “owner.” Thus, all real estate transactions become public when they are entered in the land register.
FAQ
Do I have any recourse if my buyer keeps putting off our appointment at the notary’s office?
The Civil Code of Québec states that a party’s failure to sign the deed of sale gives the other party the right to obtain a judgement in lieu thereof. If you are in this situation, use the telephone assistance service offered by DuProprio’s team of notaries* or contact a notary in private practice to find out what recourse is available to you.
Legal notice
The information on this page does not constitute a legal opinion and must not be construed as such, nor reproduced. It is provided for informational purposes only. It is advisable to consult a notary to obtain a legal opinion on a given situation.
*Depending on the package selected.