What happens at the notary’s office when you buy a property?

As soon as the promise to purchase or counteroffer is accepted and all conditions are met, the only remaining step is to formalize the transaction at the notary’s office. This visit is mandatory to finalize the sale.

The role of the notary

To take care of the legal and mortgage financing aspects;
Prepare and provide the purchase and sale agreements, as well as the mortgage deed;
Title transfers;
To discharge the mortgage and obtain the release document;
To conduct a thorough examination of the title deed, property dimensions, zoning regulations, encumbrances, easements, certificate of location, and all documents registered on the land register, as well as any additional documents provided by the seller, such as marriage contracts and divorce decrees;
To verify that the property is free from all debts;
To calculate adjustments and prepare a statement of adjustments taking into account professional fees, costs of discharging the existing mortgage, taxes, condominium fees if applicable, the broker’s commission, and other expenses;
Draft, sign and publish the deed of sale in the Land Register.

The advantages of this meeting

Certain aspects of a real estate transaction can be delicate to negotiate between a buyer and a seller. The notary acts as a guardian for buyers by carrying out the following verifications:

Does the seller have the legal authority to sell the property?
Is he the legal owner?
Who else, if applicable, must consent to this sale?
Is the certificate of location current and complete, accurately reflecting the property’s status?

The choice of the notary and the fees to be paid

Generally, the buyer chooses the notary and pays the associated fees. The amount can vary depending on the complexity of the case and the notary’s firm.

The seller must also reimburse the notary for any expenses incurred on their behalf:

The costs of publishing the cancellation deed in the land registry;
The cost of obtaining official municipal and school tax statements;
Fees for obtaining the condo corporation’s financial records;
Title insurance policy;
Bank transfer fees for the real estate broker, location certificate, and tax arrears;
The fees for managing the escrow account for the seller;
Copies of deeds ; Courier charges, etc.

The seller may have to pay certain fees, for example:

Obtaining the seller’s mortgage lender statement, repayment of the loan balance, preparation of the cancellation deed, and publication in the land registry;
Obtaining the municipal, school, and water tax statements;
Obtaining the statement of expenses for a condominium;
Obtaining title insurance;
Preparation of the mandatory form by the Land Registry;
Funds transfer;
Preparation of a power of attorney;
Escrow of funds including the holdback agreement and management;
Bridge loan;
Meeting postponed at the seller’s request, as opposed to the buyer’s;
Declaration of transfer of a property;
Regularization of title defects, etc.

Preparing your meeting

The notary ensures compliance with the regulations and supports buyers throughout the transaction process. Since the law involves several steps, this legal professional provides impartial support to accompany property buyers. In order to facilitate your first meeting, your broker can advise you on how to prepare.

Documents required for a buyer’s deed:

Identity documents
Copy of marriage or divorce contract, if applicable
Proof of home insurance valid from the date of possession (or signing of the deed of sale) of your future property, if applicable
The total amount due, including the down payment, legal fees, and adjustments

Documents required for a notarial deed for a seller:

Copy of the promise to purchase and its annexes;
Up-to-date certificate of location;
Property tax;
Title deeds ;
Marriage contract or divorce certificate;
Fire/theft insurance policy;
Copies of invoices and warranties for major renovations:
the property;
Copy of mortgage or discharge;

If applicable:

Declaration of co-ownership;
Coordinates of the condominium administrators’ union;
Rental contract (water heater, alarm system, etc.);
Copies of leases.

If any additional documents are required for the transaction in your specific case, your notary will be able to guide you.

The notary’s invoice includes fees, disbursements and taxes (GST and QST). (Chambre des notaires du Québec, March 20, 2024)

The opportunities of this collaboration

Your Proprio Direct realtor is here to assist you throughout the process and connect you with their network of resources. This support will alleviate your stress and ensure a smooth and successful transaction.