Wondering how much paperwork there will be and what type? The contracts real estate agents use are mandatory standard buying contracts. They were created by the Organisme d’Autoreglemenation du Courtage Immobiler de Queb
ec (OACIQ) and follows the Quebec real estate laws. They were created to protect the buyer and the seller.Here is an overview of what to expect when buying a residential property:
I always inform my buyer(s) that we will be filling out a minimum of 7 legal sized pages. I usually pre-fill most of the information before I meet my client(s) and then it takes about one hour to fill-in the rest of the information and to go over it with the buyer(s) so they understand all the details involved. The contract is a list of terms, statements and conditions.The contract is a standard form that requires professional training for it to be filled out properly. Even though a lot of the conditions and terms are pre-written and real estate just have to fill in the blanks, we must know exactly what to write and how to write it for the contract to be effective and clear. A judge will always look at the intent of the contract if it ever goes to court.The first part of the contract is called a Promise to Purchase (PP). It includes the summary description of the property, the buyer and seller’s information, the object, declarations, dates of delivery, and signing and extra paperwork needed to complete the sale.
The second part of the contract is called Annex A. It is the financial part of the contract. It includes occupation date, method of payment, new mortgage information, possible balance of sale and or assuming another’s mortgage.
The last part of the contract is called Annex B. It is a one pager that is filled with conditions that we may chose from. It includes the sale of the buyer’s immovable, privilege of continuing to offer the immovable for sale with a first refusal clause, acceptance conditional upon cancellation of another accepted promise, building inspection and review of co-ownership documents. All depending on the type of offer and your situation of course which ones we will chose.
The contract will have signatures and a response deadline for the seller.
It is also mandatory for the agent to fill out an Individual Identification Information Record. It is required by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This is personal information including ID. There is also a General form that is an extra one pager if we run out of room in the contract and also an Amendment form to correct any part of the offer once it has been accepted. For example, a possible renegotiation of price and terms after a building inspection.
Once the offer is presented, the seller(s) can accept the offer as is, reject it or counter it.
If the seller rejects the offer, the deal is dead and if he counters it, he will make changes to the original offer as he sees fit. Usually things like price, timelines, etc… The counter can ping pong back and forth until someone accepts the deal. Once the deal is accepted, the timeline countdown for the conditions start. That is something we include in the offer. For example, we want 7 days for the building inspection. Along with each condition is a term of failure. Meaning what will happen if a particular term or condition is not respected. For example, like the contract becoming null and void.
Most offers will have 3 conditions. They are the building inspection, the mortgage and documents necessary. These documents are a title and certificate of location. In a case for a condo you would want to request others like financials, by-laws, budget etc.
Once all the conditions have been met, the property is considered SOLD and is taken off of the market. The signing of the mortgage, title and receiving the keys will happen at the notary’s office afterward, when you take official ownership.
This is a brief overview. There are many complications that may occur so please make sure you are working with a qualified real estate agent.
I added this article because I love real estate and educating people on the matter. If you would you like me to work for you, call me 514-402-8444 or EMAIL ME!
