The Promise to Purchase

Dear readers,

As a follow-up to the last publication of my legal column in this magazine, here are a few of my thoughts on:

The Promise to Purchase

Whether you are buying a new home, a condominium or a piece of land, any type of real estate transaction is the result of an agreement between two (2) parties, duly documented in a promise to purchase containing the general conditions pre-established between the buyer and seller.

The seller, generally a member of APCHQ (Association provinciale des constructeurs d’habitation du Québec) or ACQ (Association des contracteurs du Québec), should provide all the necessary forms related to the sale of a new home. The general conditions listed in these forms are determined by the above mentioned associations in accordance with several law policies and the Civil Code of Québec. Notaries can also provide the appropriate forms to be used to this effect.

I encourage you to read and carefully examine these forms to get accustomed to their content. For example, the specific clause stating the sales price, must be properly worded and contain applicable GST and QST taxes once tax credit refunds have been added up between parties.

According to the law, it should be noted that all new home purchasers can take advantage of a release clause applicable up to ten days following the signature of a preliminary contract (article 1785 c.c.q.) by paying a maximum amount of .5 per cent (.5%) of the sales price.

As for the titles provided by the vendor, it would be wise to request a recent certificate of location reflecting the current situation of the property. For example, if the property were under construction at the time of the promise to purchase, it would be best to ask that a certificate of location, showing the completed dwelling, be available by the signing of the deed of sale.

For vacant lots, a metes and bounds description, prepared by a land surveyor is required in the case of a subdivided lot or part of an original lot. If it is the case of a renovated lot (cadastral renovation) a schematic drawing of the lot obtainable at the bureau of law publications could be sufficient. For the sale of used homes, documents should be provided by the real-estate agents involved in the sale or by the notary if the latter is unavailable.

To resume, before signing any documents committing you to responsibility and consent, it would be wise to have your file looked at by a professional in the field (notary, real estate agent and/or lawyer).

For additional information do not hesitate to communicate with me at (450) 227-7077 or at (514) 745-6673 (NORD) or at (514) 688-3131.

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.