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buying & selling a property
How buying or selling works
of one property?
Buying a property can be as exciting as it is stressful for buyers. Buyers must make many decisions in this complex area of law.
The notary therefore plays an important role in their informed decision-making.
First of all, your purchase/sale file will be analyzed in depth according to the various preliminary documents provided.
Following this analysis, the notary will also proceed to
a title review, which is a due diligence of the title deeds in order to purchase a clear title.
In addition to verifying the identity of the parties, the notary also makes sure to have the money in his trust account prior to the transaction to ensure the smooth progress of your file. The relevant documents will then be drafted by the notary.
Purchase of a condominium
The notary will adjust his advice and tasks according to the type of property you are buying. For example, the purchase of a condominium involves several additional checks.
The notary will verify the declaration of co-ownership and its modifications in order to inform you of the easements that may be present, the restrictions, the uses
authorized, etc. Also, the notary will check the financial statements to ensure that the contingency fund is sufficient to pay for work that may arise in the future. A verification of the special contributions that have already been voted will also take place in order to avoid surprises when receiving the notice of payment.
The notary also obtains a form completed by the syndicate of co-ownership in order to protect the buyer, in particular if there are arrears in the condo fees, if legal proceedings are initiated against the seller and other situations that may
cause harm to the buyer.
As you can see, the acquisition of a co-ownership requires several checks in order to avoid any unpleasant surprises and the notary is the ideal advisor to assist you in your efforts.
Find out more about the legal guarantee
Under the law, the seller is bound by the legal guarantee towards his buyer. This warranty includes the warranty of title and the warranty of quality.
Guarantee of property rights
The seller must guarantee the buyer a “good and valid title deed”.
In other words, the seller vouches for his right of ownership of the building.
The quality guarantee
The sale made without legal warranty
The seller is also bound by the quality guarantee, that is to say the guarantee against hidden defects. The quality guarantee only covers major defects which exist during the sale, which are unknown to the buyer and which a careful and diligent buyer could not have discovered.
To the extent permitted by law, the parties may agree and decide to extend or reduce the scope of the legal warranty. It is therefore possible to sell without legal warranty if a clause in the contract provides for it. However, the seller can never free himself from his personal facts.
A professional seller cannot be released from liability for defects that he knew or could not ignore and that he did not reveal.
Who pays the fees?
The costs to cover everything related to the real estate transaction are the responsibility of the buyer.
However, since the seller must provide clear title, if the property is mortgaged, the seller will be responsible for the expense of preparing the discharge.
Also, the latter must reimburse the notary for the costs incurred by the latter, in particular the costs for
obtaining tax certificates, surveyor fees, fees for issuing a new certificate of location, brokerage fees, title insurance fees, etc.
When is a new certificate of location mandatory?
When selling the property, the seller agrees, through the promise to purchase, to provide a clear title. By the same token, the latter must provide buyers with a certificate of location representing the current state of the premises.
The property must therefore not have been subject to a cadastral renovation resulting in a modification of the lot number and no construction not appearing on the current certificate of location must have been made.
Moreover, since the Ostiguy c. Allie judgement, the certificate of location must be dated no more than 10 years to the day. Sellers will need to order a new one if the issue date of the one in their possession is more than 10 years old.