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Real Estate Tips
Quebec has many features that make it stand out from the rest of Canada and these differences also apply to the process of selling a home. Quebec’s legal system is based on the French Napoleonic civil code, whereas the rest of Canada follows the common law system used in England. Here are some things to be aware of when selling in Montreal.
The Brokerage Contract
When selling with a real estate broker, you will need to sign a brokerage contract specifying if the agreement with your broker is exclusive or non-exclusive. While a non-exclusive contract While an exclusive agreement provides a guarantee of more services from the broker, a non-exclusive agreement allows you to work with other brokers and to have your listing posted on the MLS system.
Broker vs. Chartered Broker
In Quebec, there are no real estate agents, only Real Estate Brokers and Chartered Brokers. Both are trained to aid in the process of buying or selling a home, however Chartered Brokers have additional training and education in legal and business aspects of real estate that can be useful to you as a seller.
Legal Warranty
Most homes in Quebec are sold under a legal warranty, so that a home buyer may be entitled to compensation if issues with the property become apparent after the sale that were not detected during the home inspection. However, as a seller you are not required to provide a legal warranty. In cases where you may be unfamiliar with the property – for example if you were renting it out or if it was purchased as an investment and you never lived there – you can specify in the listing that it is being sold without warranty.
Welcome Tax
In Quebec, the land transfer tax is referred to as a Welcome Tax. Unlike in most other provinces, where the transfer tax is expected to be paid when the sale is notarized, the Welcome Tax is typically paid a month to six weeks later.
MLS Sites
While Realtor.ca is used for MLS listings across Canada, many Quebec residents often use Centris.ca as well. It can be useful to have your listing posted on both sites to increase exposure to potential buyers.
Occupancy Timeline
In most provinces, the seller must vacate the property as soon as the paperwork has been signed and the deposit has been transferred. In Quebec, you as the seller are permitted to stay in the house a few extra days – typically around four – until the proceeds from the sale are cleared.
Multiple Offers
When a buyer is interested in your property, they will put forth an offer referred to as a Promise to Purchase. If you receive more than one Promise to Purchase, your broker is obligated to inform all potential buyers and/or their brokers that you have received multiple offers, but they are not required to disclosure the details. This can work to your advantage, as interested buyers may modify their offer by submitting an Enhancements Prior to Acceptance form.
If you are thinking of selling your home in Montreal, connect with one of our local real estate experts and let us guide you through the process.
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