Real estate law
Real estate law rules transactions and business financing in different real estate sectors : residential, rented, commercial, agrarian etc.
- BUYING AND SELLING
In order to buy or sell a property, you may deal with a broker or proceeding alone. However, several steps have to be still completed on the final sale before you really own your property. The buyer may choose a notary who will complete the transaction and have you sign the sale/purchase contract. To that end, the notary must have access to any document concerning the property (joint bid, ownership title of the current owners, easements, mortgage deeds, declarations of co-ownerships, certificate of location and tax assessment). This will guarantee the buyer the seller really owns the asset which is free of all charges and has no title defects. Then the notary drafts the sales contract and the mortgage deed. The seller’s money is usually held in trust by the notary until the sale and mortgage are registered at the registry office.
- MORTGAGE FINANCING AND REFINANCING
When a loan is taken out between individuals or companies, a loan contract or any kind of debt acknowledgement must be drafted to settle the creditor and the debtor’s duties and obligations. The nature of the debt has to be stated (loan, credit facility, balance of sale payable etc.), as well as repayment terms, financial interests, counterparty’s insolvency and the possibility of paying upfront or not. Possibilities being countless and legality being complex, your notary is your best ally to guard you.
- LOAN CONTRACT
A loan contract or any kind of acknowledgement of liability should be drafted to recognize the existence of a debt. Certain provisions should be included in a proper loan contract which will make possible to identify the creditor and debitor’s duties and obligations. For example, it is important to clearly define the debt which can be, amongst others, a loan, a credit opening, a balance of sale payable, the repayment terms, financial interests, counterparty’s insolvency and the possibility of paying upfront or not. Some of this clauses must be explicitly introduced in the loan contract to be effective. Possibilities being countless and legality being complex, your notary is your best ally to guard you.
- RECEIPT AND RELEASE
Certain funding arrangements provide for your house as a guarantee. For example, this is the case of the mortgage. A financial institution may accept to lend money to buy a house on condition it is used as a collateral. Thus, at the time the mortgage contract is signed, a debt is entered in the Québec Land Register. The receipt is the act by which your estate is set free from the creditors’ rights after the loan has been fully reimbursed and the mortgage has been released. It has to be produced on the sell of the estate.