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To Buy |
Seven steps to acquire real estate in Québec and to enjoy it ever after |
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| Québec is different from the other Canadian provinces, in that foreigners can own real estate 100%. However, in order to protect agricultural land in Québec, those who want to acquire agricultural property must have an address in the province. | |
| Step one: Motivation | |
Real estate is real: it will always have value and in most cases that value will increase over time. It might be that the value is above materialistic. You may think of buying, but then postponing, for whatever reason. While you are thinking about it, other people who had done their research and had the guts bought the property. Don’t wait to buy real estate: buy real estate and wait. You are wasting valuable time and money if you start looking around without being ready to buy. |
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Step two: Financial resources |
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| Your bank is not the only source to determine your financial resources. When working with an independent mortgage broker, you will be surprised how much more you can possibly do with your money. There are costs other than the property itself related to acquiring real estate and we have listed these separately for your information. | |
| Step three: Identify properties of interest | |
There are more properties for sale out there than there are buyers. Big choice, big challenge! Stay focused on what you really want and what your budget allows. Especially in commercial, make sure that you have enough resources to buy inventory and run the business for at least six months. Geographical area is a big issue. If you are looking all over the place you are likely to miss out opportunities. Identify and research your preferred area for anything but real estate, before you decide going there! |
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| Step four: Find the property | |
Once you are clear about your finances and the area, you may try the internet on your own, and soon discover how confusing and misleading it can be. Having us use the internet in combination with all other sources available to our profession, will optimize the process and ensure that you get what you want. Trust us, we will find you the right property! |
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Step five: Which broker to use? |
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Choose someone who is competent, not just your friend. The Canadian multiple listing service is available to all for free. However, brokers have access to more detailed information than the public internet user and this competitive advantage comes at a certain cost. Since all brokers have access to the same properties, using several brokers at the same time may not increase your chances of finding a suitable property, unless the broker of your choice does not respond to your calls or emails. On the other hand, going with the listing broker does not mean he or she should cut their commission for you. Anyway, if you believe that someone else could serve you better than we, just send us a note as to why you made that decision. It will be appreciated. |
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Step six: Make an offer |
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An offer in Québec is called a “Promise to purchase”. It is the first step towards a legally binding contract that will eventually make you the new owner. An offer is a serious basis for negotiation and is usually dependent on several conditions to be fulfilled, prior to full acceptance. |
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| The offer identifies both parties, the buyer and the seller. You will be asked to produce two pieces of identity, before we write your name and address into the offer. It sets out the proposed buying price, the date of transferal of the property to the new owner, conditions for building inspection, conditions for financing and declarations made by the seller to the buyer as to special factors affecting the property, like servitudes, water supply, zoning, certificate of location, etc. Once agreement is reached over the price and conditions such as financing and inspection are fulfilled, the Promise to purchase is legally binding to both, the seller and the buyer. A note on the side concerning market value: The municipal evaluation on the listing does not reflect the market value of a property but is a measure for the municipality to determine the taxes. | |
| Pre-approval of your ability to finance, issued by a financial institution, or bank statement if you do not require a mortgage, is a conditio sine qua non , a pre-requisite in any serious offer. If you are buying a business: be honest about your finances and don’t expect a successful businessman or - woman to sell you his or her profitable business at a loss. | |
Step seven: The transfer of property to your name |
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In order for the title deed to be transferred to your name, the seller and the buyer in Québec have the transaction notarized. Title insurance is neither necessary nor common in Québec, since the system of notarizing real estate transactions provide for sufficient security. Mortgages are also notarized in Québec. The notary is chosen by the buyer. If you are new to the area, and don’t know anybody to go to, we will recommend a notary. A minimum of 14 days notice before the actual date is required for the notary to read and verify all the documents and prepare the new title deeds. At the set date you and your broker will meet at the notary’s office, where you will be asked again for two pieces of identity. For about 30 minutes, the notary will walk you through the different financial adjustments that he made with respect to taxes and other accounts and detail the individual costs of the entire process. For example all prior debts and mortgages on the property you are buying will all have been cancelled at the cost of the seller, and you acquire the property fresh and free of any debts. |
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| After all documents are signed, the deeds and keys will be handed over to you! | |
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