After reaching an agreement on the conditions of sale with a builder or developer, you will be asked to sign a preliminary contract.It is compulsory only in the case of the sale of a dwelling to be occupied by a natural person, It is not compulsory for a sale to a company. The preliminary contract precedes the purchase of any new or to be built property. Existing condos are generally the object of an offer to purchase. You must use it, irrespective of the fact that a real-estate broker is involved (or not) in the transaction.
You will find, hereunder, directives concerning the undertakings, provisions, and essential terms and conditions to include (or to consider) when preparing a preliminary contract.
Buying an apartment in a co-ownership is a major investment in a lifetime. In order to avoid being caught off guard during the steps prior to this acquisition, you will need to be well accompanied. After finding the apartment, the first thing to do is to appreciate the condition of it, as well as that of the building that houses it. To do things right, you need to seek the services of a building inspector.The latter will examine the unit and building that are of interest to you.
However, some buyers mistakenly believe, when it comes to a purchase in a tower, that it is not useful. However, buying without an inspection can generate significant and unpredictable costs. The purchaser will also find it difficult to demonstrate that he acted as a prudent buyer during a possible recourse for a hidden defect.
It is indeed a rare occurrence when a buyer pays its condo, in one single payment. Most of them must obtain a mortgage loan to finance their purchase. What are the criteria and conditions to get a mortgage loan? Whom should you get it from? Banks, credit unions or other sources? What are the policies of the major financial institutions in this market? What are the limitations when planning the financing of your new property?
The final step in the purchase of your apartment is the signing of the deed of sale. As soon as all the prior conditions of the sale are satisfied, the vendor must transfer the property upon the payment of the price.
Section 1719 of the Civil code of Québec states that the seller must provide the buyer with a copy of the deed of purchase, as well as with a copy of the owner history and of the certificate of location he has on hand. Prepared by a land surveyor, the certificate of location is part of the property titles the seller must supply.
In the interest of the buyer, the certificate of location should clearly describe the current condition of all private portions (for instance, an apartment, a parking or storage space, or even land). Should the seller not have a certificate of location on hand (and unless the promise to purchase states otherwise), they will need to have one prepared, at their own expense.
Before purchasing the apartment of your dreams, find out the status of the expenses (condo fees) of the apartment owing by the vendor, as you will have to pay the arrears once you become the owner of the apartment.
The Act respecting duties on transfers on immovables obliges local municipalities to collect a duty on the transfer of any immovable situated on their territory. Taxable to the purchaser, this right is called "welcome tax" not to qualify a sign of hospitality but in memory, perhaps a little in derision, of the minister of municipal affairs at the time, Jean Bienvenue. It is a significant source of revenue for municipalities. As a general rule, the duties on transfer of immovables tax account will be sent to you a few weeks after your acquisition. You will then have thirty (30) days to pay it.
Before acquiring a property, it would therefore be wise to provide for the payment of this right, in your budget in the same way as notary and real estate brokerage fees. Must appear at any request for registration of a transfer in the land register, the amount payable is generally provided for in the deed of sale. It should be noted, however, that the treasurer of the municipality has the power to revise the amount payable if he considers that it has been incorrectly calculated. This situation frequently occurs, in the context of the purchase of a new property for which the assessment roll does not yet include any entry of value, an information necessary for the calculation of the right. Keeping the roll up to date will then allow the treasurer to calculate the transfer duty in accordance with the Act.
Seeking the services of a real-estate broker, who was formerly referred to as a real estate agent, is not mandatory.
However, unless you are able to assume the purchase and / or sale of a fraction of a building held in divided co-ownership by yourself, which will require ample time as well as in-depth knowledge in various fields, you would benefit from being accompanied by a competent real estate broker during your procedures. When you use the services of a real estate broker to buy, sell or lease a property, you are protected by the Real-Estate Brokerage Act.
Since May 1, 2020, mortgage brokerage has been a discipline covered by the Act respecting the distribution of financial products and services and subject to the regulation of the Autorité des Marchés Financiers (Financial Markets Authority) to ensure the protection of the public. Not only must every mortgage broker have professional liability insurance, they must respect the rules of ethics applicable to mortgage brokers.
Its role is to advise you, whether you are a buyer or owner, about the best mortgage products available on the market. He will do it better than anyone, because this task is not simple. It involves careful and methodical research, so that the winning conditions are met, and you can make the most of them.