Land Surveyor
Land surveyors are the ones authorized by law to delineate public and private property in Quebec. Owners may call on their services to determine the boundaries of their lot using markers or to prepare a certificate of location.
Mortgage Broker
Mortgage brokers help their customers find the best mortgage loans. They find loans whose conditions best meet their clients needs: financing, RRSP program, refinancing an older home, self-employed worker loan. They also give details on pre-approved mortgages, prepayments, length of amortization, open & closed rates etc.
Appraiser
Chartered appraisers provide an objective estimate of a property’s value. Their appraisals are used for insurance, mortgages, estate settlements and asset sharing purposes. They also serve as expert witnesses in court and their report can be used as supporting documentation in the appraisal of property.
Building Inspector
Before financing the purchase of a property, it is strongly recommended that a building expert inspect it first.
Since the building inspector profession is not under governmental regulation, it is important to call on the services of an inspector who belongs to one of the following professional associations: technologists, engineers, chartered appraisers, and architects.
Inspectors who belong to one of these associations offer better protection to members of the public as they are overseen by their professional association. The Quebec Association of Building Inspectors ensures that its members in Quebec comply with professional standards.
Notary
Notaries are essential participants in any real estate transaction. They are, along with lawyers, the only ones legally entitled to draft a mortgage deed. They also write up the deed of sale and perform a title search to ensure that the purchased property is free from obligations.
Real Estate Brokers & Agents
Real estate brokers & agents answer all requests about information on a particular property, they manage all calls, organize all meetings and guide potential buyers during their visits.
There are many delicate aspects to the transaction that need to be dealt with, such as advertising, financing, qualifying a buyer, sale conditions, property inspection, preparing documents for the notary, and many other legal aspects of the sale.
Their involvement ensures that you have legal protection as outlined in the Real Estate Brokerage Act. In every estate transaction, it is crucial to have a skillful negotiator on your side, your agent is an expert on the subject. With a real estate agent on your team, you can preserve your peace of mind as they will ensure each step is successfully undertaken.
Buyer Agreement
A buyer agreement is a contract that is signed between the buyer and the real estate broker or agent. The parties work together for a period of time, and agree to respect the terms and obligations set out in the contract. (a copy is available upon request)
Start-up Costs
Did you know that when you buy property, you need to have money put aside to cover start-up costs? A down payment and mortgage payments are not the only costs involved so it’s wise to plan some savings to take care of these other “first” expenses.
These costs should not be taken lightly and some mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to meet these additional amounts.
Here is a list of common start-up costs:
- Property inspection and evaluation
- File processing fee for mortgage insurer as well as any taxes on the insurance premium
- Notary fees
- Adjustment costs determined by the notary (electricity, heating, municipal and school tax, equipment rental contract, etc.)
- Property transfer tax (welcome tax)
- Moving expenses
- Service and utilities hook-up fees (phone, electricity, etc.)
- Decorating (paint, curtains, etc.)
Welcome Tax or “Transfer Property Tax”
The tax, which is based on the selling price or on the M.U.C. evaluation of the property whatever is greater. It will be calculated as follows:
| .005 Of the first |
$ 50,000 ($ 1.00 - $ 50,000) |
| .01 Of the next |
$ 200,000 ($ 50,001 - $ 250,000) |
| .015 Of the balance |
($ 250,000 ...............) |
After you have signed the deed of sale at the notary’s office, the municipality will send you an invoice shortly after you have moved into your new home. We are glad to have you, come again!
Example #1 - Sales price: $ 150,000
| .005 x $ 50,000 = |
$ 250 |
| .01 x $ 100,000 = |
$ 1,000 |
| Transfer tax |
$ 1,250 |
Example # 2 - Sales price: $ 300,000
| .005 x $ 50,000 = |
$ 250 |
| .01 x $ 200,000 = |
$ 2,000 |
| .015 x $ 50,000 = |
$ 750 |
| Transfer tax |
$ 3,000 |
Example #3
| Sales price |
Transfer tax |
| $ 100,000 |
$ 750 |
| $ 150,000 |
$ 1,250 |
| $ 200,000 |
$ 1,750 |
| $ 250,000 |
$ 2,250 |
| $ 300,000 |
$ 3,000 |
| $ 350,000 |
$ 3,750 |
|
