The Necessary "Steps" to Finalizing a Notarized Contract

Hello,

To follow-up on the last publication of my legal column in this magazine, I thought of offering you specifics on:

The necessary “steps” to finalizing a notarized contract.

Whether it is to buy a new house, a condominium or even a piece of land, any property deal requires certain “steps” before the acquisition can be notarized.

Visit
After making several visits to different sites of your choice (residential projects, condominiums or vacant land), and deciding which selection best suits your needs, you will enter into the negotiation phase.

Negotiations
Whether your are being assisted by a legal adviser or a real estate agent (representing a broker), negotiations must be undertaken in order to reach a reciprocal agreement between parties, to everyone’s satisfaction.

Promise to Purchase
The signing of a promise to purchase, is documented on a special form provided by the “APCHQ” and/or by the “ACQ” or on any other form that includes all the required clauses in compliance with the Civil code of Quebec. This promise to purchase will contain all the clauses especially enacted under the authority of articles 1785 and pursuant to the Civil code of Quebec with regard to the right of revocation and the minimal delays required during a transaction involving a new house (residential and/or condominium).

For the sale of a piece of land, the property developer will be able to use a standard form indicating various conditions foreseen in the sale, and especially the addition of taxes (GST and PST) which will be charged to the eventual buyer. However, there is no tax in the case of a private sale of a piece of land by physical person (not acting as a promoter).

Conditions
If this promise to purchase contains specific conditions such as being:
-Subject to an evaluation by the buyer or by a mortgage company (creditor) to determine the value of the immovable;
-Subject to an inspection of the building to the satisfaction of the buyer;
-Subject to the obtaining of a mortgage loan within the required delay;
-Subject to the sale of another building prior to the conclusion of our deal (clause of 72 hours…) these conditions should be achieved before going further in the file.

Title Deeds
After the conditions have been meet, the vendor and/or his representative will send title deeds, including the certificate of location of the building sold, to the notary. The hypothecary creditor will forward the necessary documentation for the preparation of the mortgage.

Examination of the Titles
The notary will see to the examination of titles and to the entire file to the complete satisfaction of the buyer for residential projects, a new single family home or a new condominium. It is customary that the vendor appoint the notary given that he/she uses the same legal adviser for the entire project. For the purchase of land, the property developers generally agree the buyer chose his own notary.

About the Author:
Me Michel Labrèche. This column was prepared by Mtre Michel Labrèche, notary, practising in Saint-Sauveur-des-Monts and Laval for the past twenty years. Me Labrèche is also the president of Domaine le Sanctuaire des Lacs. For more information please see www.monlac.com.