Selling a home in Québec: costs to plan for and what you receive at the notary

    By Thomas Lymburner, real estate agent (broker), RE/MAX Direct

    Key facts

    • Remuneration must be stated in the brokerage contract from the start; neither the law nor the OACIQ sets its rates.
    • You generally need to repay your mortgage loan and have the hypothec discharged; early repayment may carry a penalty payable at sale.
    • If the buyer is represented, the share of remuneration paid to the buyer’s broker must appear in the brokerage contract.
    • The notary holds funds until registration of the transaction is complete.
    • The balance is released after notary professional fees, hypothec discharge and unpaid taxes or co-ownership fees.
    • Before vacating, check that every inclusion in the promise to purchase is present and working properly.

    1. Plan for mortgage repayment and discharge

    You generally need to repay your mortgage loan and have the hypothec discharged. Early repayment may carry a penalty payable at sale. A mortgage broker can explain this penalty.

    2. Check the broker and understand the agency’s role

    The OACIQ’s “Check a broker’s record” tool lets you check a broker’s licence and history, including areas of expertise, disciplinary decisions and licence suspensions.

    A real estate agency is a company that carries out brokerage through a broker. The agency executive officer (AEO) oversees that the transaction runs smoothly and can mediate disputes.

    3. Read the remuneration in the contract

    Neither the Real Estate Brokerage Act nor the OACIQ sets broker rates. Remuneration is set by free competition, usually as a percentage of the selling price, paid at signing of the deed of sale. It can also be a lump sum or hourly rate. It must be stated in the contract from the start.

    If the buyer is represented, part of the remuneration goes to the buyer’s broker and this must appear in the brokerage contract. If the buyer is not represented, the broker is not required to share remuneration.

    4. Review the selling expenses

    Thomas goes over this list with sellers before listing.

    Plan for broker remuneration and evaluation, if applicable; notary fees, early repayment penalty and mortgage discharge; adjustment of applicable taxes and rent if you occupy after the sale; other costs such as a certificate of location; and preparation: systems verification, cleaning, painting, maintenance and repairs.

    5. Understand the notary’s checks

    The notary examines titles and drafts the deed of sale and deed of loan. They check whether you are the real owner, have the right and ability to sell, whether a spouse or another person must consent, whether lot measurements are accurate and whether rights of way exist.

    6. Wait for registration and the balance

    Once all parties sign the deed of sale, the notary registers the transaction at the Bureau de la publicité des droits and holds the funds until registration is complete.

    You then receive the balance after deductions for the notary’s professional fees, the amount to discharge the hypothec, and any unpaid taxes or co-ownership fees.

    If the buyer does not attend, the reasons must be investigated. If the buyer no longer wants to buy, you have recourses and may seek legal advice.

    7. Check inclusions before moving out

    Make sure everything included in the promise to purchase is there and working properly.

    Your broker must accompany you through every step. For general questions, contact Info OACIQ. Concerns can go to the executive officer of your broker’s agency, and Info OACIQ can explain remedies under the Real Estate Brokerage Act.

    Frequently asked questions

    Plan for broker remuneration, evaluation if applicable, notary fees, any early repayment penalty, mortgage discharge, adjustment of applicable taxes and rent if you occupy after the sale. Other costs may include a certificate of location and preparation: systems verification, cleaning, painting, maintenance and repairs.

    No. Neither the Real Estate Brokerage Act nor the OACIQ sets rates. Remuneration is set by free competition and must be stated in the contract from the start. Usually a percentage of the selling price paid at deed signing, it can also be a lump sum or hourly rate.

    If the buyer is represented, part of the remuneration goes to the buyer’s broker and this must appear in the brokerage contract. If the buyer is not represented, the broker is not required to share remuneration.

    You generally need to repay your mortgage loan and have the hypothec discharged. Early repayment may carry a penalty payable at sale; a mortgage broker can explain it.

    Once all parties sign the deed of sale, the notary registers the transaction and holds the funds until registration is complete. You then receive the balance after notary professional fees, the amount to discharge the hypothec, and unpaid taxes or co-ownership fees.

    Make sure every inclusion in the promise to purchase is present and working properly. Your broker must accompany you through every step; Info OACIQ answers general questions and concerns can go to the agency executive officer.

    Sources

    General information only. This guide is not tax or legal advice: confirm your situation with an accountant, notary or lawyer.

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