From preparing your legal paperwork to marketing your home and notarizing the sale, selling a home or condo is a complex process which includes several elements and deadlines to coordinate.
Here is an overview of the steps involved:
1. Choose a real estate broker to represent you during the sale, unless you plan on selling on your own
By working a real estate broker, you will benefit from the expertise and market knowledge of a qualified professional who is supervised by Quebec’s real estate board and the protections of the Real Estate Brokerage Act.
Brokers help sellers by marketing your home to their internal network as well as listing it on Quebec’s MLS, helping you price your property according to fair market value and seasonal strategies, oversee showings and negotiate with buyers and selling brokers.
2. Sign a Brokerage Contract – Sale form as published by the OACIQ.
This form establishes the terms under which your broker will act, as well as your own rights and obligations as a seller.
It includes, among other things:
- An asking price for your property, set with the help of your broker’s expertise, based on market value.
- The legal obligations of your broker – such as presenting all received offers to the seller.
- The seller’s obligations – such as providing an honest certificate of location.
- The amount and terms of your broker’s remuneration.
The brokerage contract will also stipulate the promotional activities your broker will use to advertise the property, such as open houses, print advertising, online advertising and the MLS listing.
3. Prepare and gather necessary legal documents
It is a good idea to prepare all the necessary documentation before publicly listing your home for sale. Once an offer comes in, missing documentation can lead to delays which may jeopardize the sales process.
Here is a comprehensive list of the documents needed to sell a condo or home at various stages of the transaction:
- The certificate of location
- Bills for renovations to the property
- The declaration of co-ownership, if you are selling a condo
- The rental lease or leases in the case of plexus
- Municipal and school tax notices
- Monthly electricity bill average
- Fixed costs for the property
4. Complete your Declarations by the Seller of the Immovable
All sellers in Quebec are required to provide a Declarations by the seller of the immovable, which is designed by the OACIQ to protect both the buyer and seller’s interests. It covers all known elements pertaining to the state of your home or condo, such as a historical record of repairs, damages, extensions, and so forth. Declaring all known information about the property will protect the seller from legal battles down the road, by allowing the buyer to make an informed decision based on provided information.
Your broker will help you determine what you need to declare in the Seller’s Declaration.
The seller must provide all known information in good faith, including:
- The names and contact information of all owners or shareholders
- The year of construction and purchase;
- Visible problems or defects which may lower the value of the property
- Water infiltrations and soil contamination;
- Presence of ochre deposits or pyrite;
- Condition of the roof, plumbing, heating system, etc.
- Renovations or extensions completed on the property
- The seller(s)’ signature promising that all provided information is correct, and no information has been omitted to the knowledge of the seller.
5. Market your home to potential buyers
Your broker will now begin the process of marketing your property to their internal and extended network of buyers. This includes:
- Taking professional photos of the listing
- Listing the property on Centris – Quebec’s Multiple Listing Service
- Advertising the home online or in print publications such as periodicals, local newspapers, and real estate magazines
- Coordinating requests for visits and organizing open houses
- Showing the home to its best advantage to potential buyers
6. Reviewing promises to purchase
A well-marketed home will attract multiple promises to purchase, also known as “offers,” which will include several important elements
- The price offered by the buyer.
- The pre-approval which proves that the buyer possesses the necessary funds .
- The terms of the terms such as inclusions, move-in date, and conditions.
- The expiration date and time of offer.
Your broker is legally obligated to present any promise to purchase he or she receives on the property.
He or she will also help you review each offer, and decide whether to make a counter-offer, or to accept the offer.
7. Make counteroffers and negotiate.
Approach each offer as an opportunity to negotiate.
Your broker’s role is to justify your counter offers to the buyer, to negotiate on terms and inclusions, and to inform all involved parties when offers have been received, adjusted or accepted.
8. The notarization process
Once an offer has been accepted and buyer’s mortgage loan has been granted, the transaction must be made official by signing the deed of sale before a notary. The buyer is responsible for choosing the notary.
Your broker will be present at this final step, in case the buyer or seller has any final questions about property or the legal transaction.
The notarization process includes:
- Title transfers: The notary will transfer the ownership of the property to the buyer. The certificate of localization will be used to verify that the house was built according to municipal regulations and in accordance with zoning laws. The notary will ensure that the dimensions of the terrain are correctly listed, and that all taxes and outstanding debts have been paid.
- Drawing up the bill of sale: This bill makes the home’s sale official. The notary will go through each clause and conditions to protect the rights of both parties.
- A statement of adjustments: This includes any adjustments made to the sales price, the downpayment, taxes, rents, co-ownership fees, etc.
9. Registering the sale at the land registry office
As a final step, the notary will deposit the bill of sale at the land registry office, which officially designate the buyer as the new owner of the property. The sale will be made public inn the land registry.
This article, Detailed List of Legal Steps for Selling a House or Condo: Montreal, appeared first on Shupilov News.