StepsYou havethe rightto foresee.

There are generally two steps
to buying a property:àTHE OFFER TO PURCHASE(PROMISE TO PURCHASE)

You must present the vendor with an offer
to purchase. It will contain your conditions for buying
the property, the most obvious being the price.
The vendor may accept or reject your offer, or makea new one (the “counter-offer”). If the vendor accepts
the offer, the offer to purchase constitutes a contract
for which the terms and conditions are difficult
to amend or cancel.

Consult your notary!

www.cnq.org© Chambre des notaires du Québec, 2021 - DEP207 - PHOTO : ISTOCKàBuyinga property
Do business withyour notary!

SIGNINGTHE DEED OF SALE

To officially become the owner, you must sign the deedof sale. Signing generally takes place at the notary’soffice. It is only then that the transfer of property takes
place. Your notary will advise you on the conditions toinclude in the offer to purchase a house, a plot of land,a cottage, a duplex, a condominium or a multiplex.
He will explain the conditions proposed by the vendor
and will advise you during negotiations.
He will also prepare the documents required
to transfer ownership and will make sure thatyour title of ownership is valid.

Buying a condominium ora new property requires additional
documents and verifications so you
can avoid unpleasant surprises.
Ask your notary for more information.

Here are the 10 main
points the notary
will assess with you:DATE OF SIGNING
1 THE
THE DEED OF SALE
The date of signing the notarized deed of saleis the date of the property transfer. You thenofficially become the owner.
The signing date may be negotiated according
to your needs and to those of the vendor, among
other things. For instance, if you already own
a house, you will probably want the money fromits sale before signing for a new property.
It is generally from this date that you become
responsible for municipal taxes, school taxes
and other costs relating to the property.
If the date of signing the deed of sale is not
the same as the date you take possessionof the property, your notary will advise you onprotection measures to take in the meantime.

2 DEPOSIT ON

THE SALE PRICE

The vendor will generally require a depositon the sale price. To give the vendor and the buyer
adequate protection, it is recommended that thisdeposit be paid into a notary’s trust account,rather than directly to the vendor.
If the sale does not go through, your deposit
will be reimbursed to you or be used to compensate
the vendor if stipulated in the offer to purchase.

3 LEGALGUARANTEES

5 FINANCING

THE PURCHASE

The vendor must guarantee his right of ownershipby declaring the following:
He is the rightful owner of the building and has
the right and the capacity to sell it.
No one else has any rights over his property,
except those he has declared (such as a mortgage
by the bank or a neighbour’s right of way).
The property does not encroach on any neighbour’sland and vice-versa.
The building complies with the laws and by-laws
in effect, aside from the restrictions that he must
declare in the offer to purchase (e.g. additionof a bachelor dwelling in the basement withouta permit and in violation of the by-law, or the numberof accessory buildings exceeds the limit allowedby municipal by-laws).
Your notary will analyze the vendor’s representations
on the basis of the location certificate and the titlesof ownership (the property deeds).

The notary will make sure he has received all themoney needed to proceed with the transfer of ownership.

Vendors must also provide a guarantee against
hidden defects (such as cracks in the foundationthat could make the building unstable).

The location certificate is prepared by a land surveyor
and allows the notary to ensure the exact size of theland you wish to buy and the dimensions and locationof the buildings on it. The location certificate also
notes irregularities and non-compliances observedby the land surveyor when he visited the premises
and conducted the checks.

This guarantee protects you against major defects thatexisted at the time of purchase but were unknown to you
and could not be discovered even by someone acting
prudently and diligently. Before waiving these guarantees,
ask your notary about the consequences.

4 INSPECTING
BEFORE BUYING
Having the property inspected by a certified inspector
makes it possible to detect defects that could affectits value. It may also allow you to negotiate a pricereduction—for example, if the inspector’s reportstates that the roof has to be redone.

To do so, he will check the following:
Thepurchase priceThe down payment
The financing for the mortgage
Any taxes to be reimbursed to the vendor
The notary’s fees
Be careful of an umbrella mortgage, which covers all
current and future debts contracted with the lender,
not only the borrowed amount for the purchase.
As a result, the mortgage would be for an amounthigher than the loan. The umbrella mortgage has
many pros and cons. Learn more from your notary.

6 CHECKING THE LOCATIONCERTIFICATE

7 MUNICIPAL BY-LAWS

Upon request, your notary can complete all
the necessary checks with the municipality to see
if your property conforms to all municipal by-laws,
and if your project is feasible.
For example, he will see if municipal by-laws would
allow you to operate a business on the property.

TWO OR MORE
8 WHENPEOPLE BUY TOGETHER
When two or more people buy a property together,
your notary will counsel you on the advisabilityof signing a contract among yourselves.
This contract would put in writing:each person’s financial contribution to the purchase;the terms and conditions for reimbursing themortgage and other costs (such as taxes,maintenance and repairs) related to the property.

9 PRICEThe price is generally determinedby several factors, including:Municipal assessment
Market value
Date of purchaseMaintenance and repairs needed

10 OTHER POSSIBLE TERMS
AND CONDITIONS
Because each case is unique, your notary will advise
you according to your own situation.

àHOW TOPREPAREInformationto collect¡ The full name and contact information ofthe purchasers and the vendors¡ The address of the property or its lot number.
¡ Documents confirming the civil status of
the purchaser and vendor (marriage certificate,marriage contract, judgment of divorce, etc.)¡ The complete offer to purchase and the property
documents (tax accounts, location certificate, etc.)

Signing
the deed of sale
The signing of the deed of sale generally
takes place at the notary’s office. This iswhen the right of ownership is transferred.
Your notary will take care of all the verifications
and procedures required to properly transfer
ownership of the property.
Among other things, your notary
will make sure that:
The
sale conditions stated in the promise
to purchase have been respected.
The financing for your mortgage istransferred to him before the signing, and thefinancial institution’s mortgage is properly
registered on your property.
 he transfer of money between himself andT
all the parties involved is entirely safe.
Every problem is resolved before the signing
to protect your interests and those of yourfinancial institution.
The ownership transfer is smoothand the deeds are registeredaccording to law.

¡ Any other information requested by your notary

Foodfor thought¡ Have you planned to meet with your notary
before signing your offer to purchase?
¡ Have you told the notary of your plans forthe new property—such as operating a businessor building a garage?
¡ Have you read the location certificate
for the property?
¡ If you are buying a property with other people,
have you made plans for a notarized contract
among the purchasers?
¡ Any other question raised by your notary.

Did youknow?
à If your notary uses the assets or money
entrusted to him for purposes other thanthose agreed, you may submit a claim
to the compensation fund of the Chambre
des notaires du Québec.