Whether you already own a home or are planning to purchase your first property, navigating the world of real estate comes with its share of legal documents. Among the most important is the property title, a document that plays a vital role in confirming ownership and protecting your rights.
But what exactly is a property title and why is it so essential? Here's everything you need to know about this cornerstone of real estate.
Definition: what is a property title ?
A property title is an official document that proves a person is the legal owner of a real estate asset (house, apartment, land, building, etc.). It also confirms that the individual has the legal right to use, sell, rent, or transfer the property, in accordance with applicable laws.
This document is drafted by a public officer, usually a notary, and then registered with the land register to ensure a legally recognized proof of ownership.
What is it used for?
A property title is a vital legal document in real estate. It formally certifies who owns a property and plays an important role in many legal and financial situations. Here are its key uses:
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Obtaining a mortgage: When applying for a mortgage loan, lenders require proof of ownership. The property title confirms that you legally own the home and can use it as collateral.
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Estate planning: In the event of a death, the title helps identify the property to be passed on and clarifies who has the right to inherit it, ensuring a smooth transition of ownership.
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Legal disputes: The title serves as essential legal proof in disputes over ownership, property boundaries, or in the case of expropriation. It helps defend your rights as a property owner.
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Buying or selling property: During a real estate transaction, the notary verifies the title to ensure the seller has the legal right to sell and that there are no hidden claims or irregularities that could affect the buyer.
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Verifying property rights: The title can reveal whether the property is affected by legal restrictions, such as easements, servitudes, or zoning limitations, which might impact how the property can be used.
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Identifying the owners: It names the current legal owner of the property and provides a history of previous owners, which can help trace the legal chain of ownership.
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Checking for mortgages or liens: The title indicates whether there are any mortgages or legal charges registered against the property, either active or previously discharged.
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Confirming boundaries and potential encroachments: The title, often used with a land survey, helps verify the property’s exact boundaries and detect any encroachments by neighbouring structures.
Who can access this document?
Anyone can consult a property title. However, only a notary or a real estate lawyer has the expertise to accurately interpret its legal implications. Their analysis can identify issues such as existing mortgages, easements, or other restrictions that may impact ownership or usage rights.
How to obtain a property title in Quebec
To consult a property title in Québec online, you’ll need to access the Land registry, the official land registry that contains all legal documents related to property ownership in the province. Here’s how to proceed:
Online search procedure via the Land Register
To consult a property title in Quebec online, follow these steps:
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Register online: Start by creating an account on the Registre foncier du Québec website. Registration is required to access and consult property records.
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Gather necessary details: To search for a property, you’ll need the lot number and cadastral designation. If you don’t have these details, you can use the free online tool Infolot, which lets you search by civic address to retrieve the necessary cadastral information.
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Perform the search: Once registered and equipped with the correct data, you can search for the property title and other associated legal documents directly on the platform.
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View and download documents: After completing your search, you’ll be able to access the property’s information sheet and consult documents such as deeds of sale, mortgages, or previous transfers. These documents are available to view, download or print, although free may applyto for certain types of access.
Title examination by a notary
The examination of property titles by a notary is a crucial step in any real estate transaction. It is one of the notary’s primary responsibilities during the sale of a property. This process involves reviewing the chain of title, meaning the complete history of all previous ownership transfers of the property. The notary ensures that each prior transaction was carried out legally and that each seller had the proper legal authority to sell.
The objective is to ensure that ownership rights have been legally and properly transferred at every stage, so that the new buyer becomes the full and lawful owner of the property, without any risk of future disputes or claims.
How does the verification process work?
During the title examination, the notary verifies that the seller is the legal owner of the property and has both the right and legal capacity to proceed with the sale. The notary also ensures that the consent of a third party, such as a spouse, is not required to complete the transaction.
The notary will also review the certificate of location in order to confirm several key elements, including:
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Whether the building is properly situated on the lot being sold.
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Whether the lot’s dimensions and boundaries are accurate.
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Whether there are any encroachments, such as neighbouring structures extending onto the property.
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Whether the placement of windows complies with current regulations.
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Whether any servitudes exist, such as a right of way.
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Whether the construction complies with municipal bylaws and zoning regulations.
The notary’s review also helps identify any charges or real rights that may affect the property, such as a mortgage, court judgment, or legal seizure. This step is essential to ensure that the buyer receives a clear, valid, and undisputable property title.
Title insurance: Is it a necessary protection?
Title insurance is designed to protect you from financial losses resulting from legal issues related to the property title, such as fraud, errors, or omissions. Although it is not mandatory, it can be purchased at any time whether during the acquisition of a residential or commercial property, or when refinancing a mortgage.
There are various types of title insurance available on the market. Some policies cover only the property's market value at the time of purchase, while others offer broader protection to account for potential increases in the property’s value over time.
Title insurance is not limited to defects in title. It can also cover other risks that may affect your ownership rights or the use of the property, such as:
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Identity theft
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Non-compliance with municipal regulations
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Undocumented servitudes or easements
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Errors in the land survey
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Unknown debts or legal claims attached to the property
The cost of title insurance depends on the type of coverage selected and your specific situation. It is therefore advisable to carefully review your options to determine whether this protection suits your needs.
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