Best Mortgage Montreal brokers can show you how to save on the costs of your Notary and other fees.
Talk to one of our experts today and save on property transaction expenses.
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Notaries play an important role in all Quebec property transactions and are there to ensure that the buyer obtains a clean and fully legal property title.
In Quebec, the buyer is responsible for choosing and paying the fees of the notary whose job it is to complete the transfer of ownership process.
Read on below to find out more about the important role of notaries in property transactions in Quebec.
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When you are ready to buy a property in Quebec your notary will ensure that due legal process is followed so that you can rest assured knowing that you have full legal title to your new home.
Among their many roles, you notary will:
What is the Title Search?
The title search establishes the sellers’ rights to transfer ownership of the property by confirming the identity of the current legal owner and if any other parties also hold interests in the property. A thorough title search is essential so that any liens, claims, restrictions, debts or other assessments are revealed and resolved effectively before the bill of sale is signed.
What is the Certificate of Location?
This is an up-to-date report and plan of your property showing its exact location, size, dimensions of windows and other structural features, including fences, tool sheds, decks, swimming pools etc. In Quebec this is usually provided by the seller and has to be confirmed as accurate by the buyer or their representative.
What is the Mortgage Deed (acte d’hypothèque)?
The mortgage deed (sometimes also known as a deed of trust) is the document in which you agree to pledge your property as security for your loan. If you default on your monthly mortgage payments your lender will use the mortgage deed as the legal justification for foreclosing on your loan.
Property transfer forms
In the property transfer forms you agree to pay a specific sum in exchange for which the legal ownership of the property is transferred from the seller to you. Once these forms are signed by both parties in the presence of the notary the contract becomes legally binding.
What are Property Transfer Taxes?
Land transfer taxes are calculated differently in Montreal than in other parts of Quebec. For a full explanation of land transfer taxes in Quebec go to http://www.ratehub.ca/land-transfer-tax or talk to your notary.
What is the Certificate of Payment?
Certificate of Payment forms are required as part of the sale of a condominium and confirm that all strata, association and other fees and assessments have been paid in full.
What are Statements of Adjustments and Disbursements?
Some expenses such as property taxes and other fees may have to be adjusted between buyer and seller, depending on when they were paid, the period that they cover, who made the payment and the date of sale. The Statement of Adjustment clarifies such outstanding financial and other matters. The Statement of Disbursements specifies the time-frame in which payments will be made and by whom.
Managing the in-trust account
The in-trust account is where you will make any deposit that is agreed upon between you and the seller (deposits in Quebec are discretionary, not obligatory, and depend upon agreement between buyer and seller). In addition, the in-trust account is where your mortgage lender will make payment once the Bill of Sale is signed by both parties and prior to your notary registering the transfer of ownership with the Land Title Office.
Registering the Property Transfer/Bill of Sale
When you buy a property, besides the physical building you are buying what is known as fee simple or fee simple absolute title. The term derives from the old French term fief simple which is still used in Quebec today.
Fee simple is just another way of saying freehold tenure and is the most common type of property ownership, meaning that the property can be owned or inherited by any person.
The Bill of Sale and ownership of fee simple titles is registered in Quebec at the Land Title Office (Régistre foncier or Bureau de la publicité des droits).
What is the State of Title Certificate
This certificate is issued by the Registrar of Land Titles once the property has been transferred and the mortgage paid, with the original going to the lender and a copy provided to you, the buyer. It guarantees that the named person is the registered owner of the property and lists any encumbrances.
In general, the cost of a notary varies throughout different regions in Quebec. Notaries usually charge by the hour and their rates vary according to what needs to be done and how much time it takes to complete the work. Normally, you can expect to pay at least $1,200 – $1,600 in legal fees, transactions costs and taxes for a straight-forward transfer of ownership for a single family home, and more if there are any complications involved.
However, when you negotiate your mortgage with Best Mortgage Montreal we can show you how to save on notary and other fees – saving you hundreds of $$$ in overall expenses.
For more information about how Best Mortgage Montreal can assist you in finding an excellent mortgage with advantageous terms and low interest rates, as well as showing you how to save on notary and other closing costs, please contact one of our expert brokers today.
Telephone 1 (514) 994-1030 or 1 (514) 819-9181