In real estate transaction, several experts play key roles, including real estate brokers, mortgage brokers and building inspectors. Among these professionals, notaries are essential for ensuring a smooth execution of the buying and selling process, even though their importance if often underestimated.
Many people assume that a notary’s sole responsibility is to oversee the signing of documents, but their responsibilities extend far beyond that. In Quebec, their involvement is mandatory, and they play a crucial role in protecting your assets and upholding your rights.
Let’s take a closer look at the role of a real estate notary.
What are the responsabilities of a real estate notary?
Notaries play a crucial role in real estate transaction, leveraging their extensive knowledge of Quebec law to assess the legal implications of your decisions and the documents you’re signing. As impartial experts, they provide valuable information and advice on various aspects of buying or selling a home, including:
- Advising on the terms to include in the Offer to Purchase.
- Emphasizing the importance of verifying the Certificate of Location.
- Highlighting necessary precautions when purchasing property in joint ownership.
- Stressing the need to review the Declaration of Co-Ownership before acquiring a condominium.
- Outlining the different forms of financing available.
- Explaining the legal implications of various documents involved in the transaction.
Primarily, notaries work preventively to ensure the legal and financial security of their clients throughout the property transaction. In some cases, they may also serve as mediators to resolve conflicts, such as neighbourhood disputes or issues arising from divorce.
The initial meeting between the notary and the clients
The first meeting between the notary and their clients is an important step in understanding the needs of everyone involved in the transaction.
While the notary is often hired by the buyer, it is essential that they remain impartial, offering their expertise to all parties. To do this effectively, the notary must gain a comprehensive understanding of the situation, including details like the down payment, type of loan secures, and the nature of the property. This insight allows them to tailor their advice and services to better protect everyone’s interests.
After this initial meeting, the notary will take the necessary steps to verify the validity of the titles and the information provided by their clients. They serv as an intermediary, facilitating communication between the various individuals and professionals involved in the buying and selling process.
Collection and verification of information
As mentioned, after meeting with their clients and identifying their needs, the notary will follow up with all parties involved, confirming identities to prevent any potential fraud.
The notary will request all necessary documents for a smooth transaction and thoroughly examine the title deeds. They will meticulously analyze and verify all relevant information, with particular emphasis on the promise to purchase.
Since most properties, unless newly constructed, have a complex history of modifications and ownership changes, the notary must validate numerous elements. This includes reviewing past purchases, sales, mortgages, tax statements, rights of way, and other easements. Their thorough approach is crucial to ensure that no detail is overlooked, safeguarding the interest of all parties involved.
Production and publication of notarial documents
Once the notary has verified that all aspects of the transaction are in order, they can proceed with the production of notarial deeds, often referred to as authentic deeds. All parties must then sign these legal documents to officially complete the transaction.
The process begins with the buyer signing the mortgage loan agreement. The notary then explains the financing terms and repayment clauses within the contract, ensuring that the client makes an informed decision.
After this initial signing, the notary must publish the mortgage in the Quebec Land Registry and hold the necessary funds for the property in a trust account.
Following these steps, the notary will bring the buyer and seller together to sign the deed of sale, which formalizes the real estate transaction. This deed will also be published in the land registry, completing the process.
Management and delivery of funds to the parties involved
Once all legal documents are in order, the notary manages the distribution of funds related to the transaction. Their primary role in the process is to ensure that any creditors of the seller with claims on the property are paid first.
The notary will allocate the sale proceeds to:
- Pay off the remaining balance on the seller’s mortgage.
- Settle the real estate broker’s fees.
- Address any other unpaid accounts associated with the property.
By repaying the seller’s mortgage, the notary secures a mortgage discharge, which they will then publish in the land registry. This step confirms that the property is free of debts.
Even after the sale is complete, the notary is responsible for preserving the authentic documents of the transaction indefinitely. They must also provide copies to the seller and buyer, as well as to their relatives and heirs upon request.
Are you looking for a notary for a real estate transaction?
XpertSource.com can help you in your efforts to find a notary. By telling us about your project, we will refer you to top-rated experts, free of charge! Simply fill out the form (it only takes 2 minutes) and you will be put in contact with the right experts.
