Archives des information acheteur montreal - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/information-acheteur-montreal-en/ Plateau Mont-Royal, Outremont, Rosemont La-Petite-Patrie, Mile-End, Ville Marie Thu, 03 Apr 2025 02:43:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 https://yanicksarrazin.com/wp-content/uploads/2020/11/77174542_2673133149440852_8670214071997431808_n-60x60.png Archives des information acheteur montreal - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/information-acheteur-montreal-en/ 32 32 Mortgage reforms: towards easier access to home ownership for Canadians https://yanicksarrazin.com/en/immobilier/non-classifiee-en/mortgage-reforms-towards-easier-access-to-home-ownership-for-canadians-2/ Thu, 03 Apr 2025 02:42:12 +0000 https://yanicksarrazin.com/?p=73037 Mortgage reforms – Important points As of December 15, Canadians will find it easier to buy a home, thanks to two new reforms implemented by the federal government. These measures will raise the ceiling on mortgage loans and increase the repayment period on mortgage loans. In this article, our Montreal real estate brokers explain the […]

L’article Mortgage reforms: towards easier access to home ownership for Canadians est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Mortgage reforms - Important points

As of December 15, Canadians will find it easier to buy a home, thanks to two new reforms implemented by the federal government. These measures will raise the ceiling on mortgage loans and increase the repayment period on mortgage loans.

In this article, our Montreal real estate brokers explain the main changes that will help Canadians acquire property.

Housing plan and mortgage reforms

In recent years, the dream of owning a home in Canada has become increasingly difficult for many Canadians, especially young adults. To remedy this situation, the federal government has announced the construction of 4 million new housing units, as well as the introduction of two mortgage reforms as of December 15, 2024, which are just some of the initiatives being put in place. Federal Finance Minister Chrystina Freeland has announced that these new measures are designed to create intergenerational equity. The new mortgage reforms consist of:

1. Increase the price ceiling from $1 million to $1.5 million for insured mortgages.
2. Extend eligibility for 30-year mortgage amortization to all first-time and newly built homebuyers.

“We’re raising the ceiling on insured mortgages to take account of property prices in more expensive cities. Also, people who buy a property have more time to repay their mortgage. […] These are measures aimed at creating equity between generations.” – Chrystina Freeland, Federal Minister of Finance

Price ceiling increased from $1 million to $1.5 million for insured mortgages

Mortgage loan insurance is mandatory when you want to buy a property with a down payment of less than 20% – the guarantee covers down payments between 5% and 20%. This guarantee allows Canadians to obtain a mortgage of up to 95% of the price of the property, at a reasonable interest rate, even if the down payment is lower. This will provide stability to the mortgage market, and also offers protection to the lender in the event that the buyer is unable to make mortgage payments.

At present, mortgage loan insurance applies only to properties of $1 million or less. However, as of December 14, 2024, mortgage loan insurance will be eligible for properties up to $1.5 million. The amount attributed to mortgage properties ranging from $1 million and under had not been modified by the Government of Canada since 2012. By increasing this limit, the federal government is adjusting the housing plan to current financial realities and market prices. This reform will enable more people to qualify for mortgage loan insurance.

30-year depreciation eligibility extended to all first-time buyers

As of December 15, anyone buying their first property or a newly-built property will be able to amortize their mortgage over 30 years. For a property to qualify as new construction, it must not have been used as a residence before. To qualify, you must meet one of the following criteria:

1. You have never previously purchased a property;
2. In the last four years, you have not occupied a property that you or your spouse owned;
3. You have recently experienced the end of a marriage or civil union. To this extent, the regulations adopt the Canada Revenue Agency’s approach to the Home Buyers’ Plan. This program allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a home.

These two reforms have two main objectives: (1) to enable buyers to reduce their mortgage payments on a monthly basis, thereby making home ownership more affordable, and (2) to encourage the construction of new buildings. To be considered a new property, the real estate must not have been occupied for residential purposes.

All in all, this adjustment in the housing plan is an opportunity for Canadians, and demand for real estate should increase dramatically. We invite you to contact our brokers today to start your search for your first property.

Sources : 

Extended 30-year mortgage amortization. https://ici.radio-canada.ca/rci/fr/nouvelle/2104872/amortissement-hypotheque-trente-ans-elargi

Government of Canada. The Home Buyers’ Plan. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html

How much do you need for a down payment? https://yanicksarrazin.com/en/immobilier/buyer-information/how-much-do-you-need-for-a-down-payment/ 

Mortgages: understanding them better for a real estate purchase https://yanicksarrazin.com/en/immobilier/buyer-information/mortgages-understanding-them-better-for-a-real-estate-purchase-2/ 

Ottawa gives first-time buyers another boost. https://ici.radio-canada.ca/info/breve/10608/changements-prets-hypothecaires-premiers-acheteurs 

The Boldest Mortgage Reforms in Decades. https://www.canada.ca/en/department-finance/news/2024/09/the-boldest-mortgage-reforms-in-decades.html

 

L’article Mortgage reforms: towards easier access to home ownership for Canadians est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> How to write a competitive offer to purchase? https://yanicksarrazin.com/en/immobilier/buyer-information/how-to-write-a-competitive-offer-to-purchase/ Fri, 14 Mar 2025 18:58:23 +0000 https://yanicksarrazin.com/?p=72416 You’ve been looking for a property for several months and, despite several offers, you’re having trouble standing out from the crowd? Our team of Montreal real estate brokers has a few tips to help you formulate a more competitive offer to purchase and increase your chances of success in today’s real estate market, where multiple […]

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You’ve been looking for a property for several months and, despite several offers, you’re having trouble standing out from the crowd? Our team of Montreal real estate brokers has a few tips to help you formulate a more competitive offer to purchase and increase your chances of success in today’s real estate market, where multiple offers are common.

Learn more about the current market

Use an experienced real estate broker

It’s essential to work with a qualified real estate broker when looking for a property. Thanks to their expertise in the current real estate market, they’ll be able to guide you effectively and help you make the best decisions when making your purchase offers.

Analyze the real estate market

By working with a real estate broker, you’ll benefit from his or her expertise in in-depth analysis of the current market. For example, he can study recent sales of comparable properties in the area you’re interested in, giving you a clear picture of prices in the area. This data will enable you to formulate a more competitive offer, adapted to the realities of the market.

Research on the property

Before making an offer, it’s essential to do your research on the property in question. You can check publicly available data. Having a thorough knowledge of the property will enable you to submit a more solid offer.

Make sure you have a solid financial position

Get pre-approved for a mortgage

Our team of real estate brokers strongly recommends that you obtain a mortgage pre-approval before making an offer to purchase. This document inspires confidence in the seller, as it demonstrates the buyer‘s seriousness and financial capabilities.

Offer a down payment

Although the down payment is not a common practice in today’s real estate market, our real estate brokers strongly suggest that you consider it when submitting your offer to purchase. It shows you’re serious about finalizing the transaction, and strengthens your position vis-à-vis other potential buyers.

Make a clear and precise offer to purchase

Offer a competitive price

Based on your research, offer a competitive price. If the real estate market is very competitive, we suggest that you make a promise to purchase that is higher than the advertised price, in order to have a better chance of standing out from the crowd, especially in the case of multiple offers.

Be precise in your conditions and clauses

Our real estate team suggests that you be clear and concise in the conditions of your promise to purchase, avoiding superfluous clauses that could be perceived as an obstacle by the seller. However, certain conditions, such as inspection, should be mentioned in the promise to purchase, as they protect the buyer‘s interests.

Be flexible with the closing date

We recommend you be flexible about the closing date, and offer a date that also suits the seller. For example, if the seller needs to relocate quickly, we recommend that you propose an early closing date to facilitate the process for all stakeholders.

Add a personal touch to your offer to purchase

Present a letter to the seller

Our team of real estate brokers strongly recommends that buyers write a letter to the seller, expressing their interest in the property and why they have chosen it. This letter is then reviewed by your real estate broker to ensure that it contains all the necessary information.

In some cases, your real estate broker could also present your promise to purchase directly to the sellers. This approach would personalize the transaction and add a more human dimension, which could reinforce the impression of seriousness and foster a better connection with the seller.

Be available and flexible

Be responsive

In a competitive real estate market, speed is of the essence. For example, it’s crucial to react quickly when sellers approach you for information or when you have to respond to a counter-offer. A quick response not only demonstrates your interest in the property, but also strengthens your position with sellers.

Be ready to negotiate

It’s important to be flexible and open during negotiations. Sellers sometimes ask for minor adjustments, and buyers shouldn’t be inflexible in the face of these requests. On the contrary, they must be ready to discuss with the sellers in order to find common ground that satisfies both parties.

In short, a successful offer to purchase requires good preparation, thorough research and a certain amount of flexibility. By working with one of our Montreal real estate brokers, you’ll be guided every step of the way, including the drafting of your promise to purchase.

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]]> OACIQ and APCIQ: What’s the Difference Between these Two Key Real Estate Organizations? https://yanicksarrazin.com/en/immobilier/news/oaciq-and-apciq/ Fri, 15 Nov 2024 17:52:09 +0000 https://yanicksarrazin.com/?p=64992 L’APCIQ An association representing the real estate brokerage profession Although they both work in the real estate market, the APCIQ and the OACIQ are two very distinct organizations, with complementary roles and missions that make a significant contribution to the regulation of the real estate sector. To help you distinguish between them, our real estate […]

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L'APCIQ

An association representing the real estate brokerage profession

Although they both work in the real estate market, the APCIQ and the OACIQ are two very distinct organizations, with complementary roles and missions that make a significant contribution to the regulation of the real estate sector. To help you distinguish between them, our real estate brokers present these two little-known associations, which are essential to the smooth operation of the Quebec real estate market.

The Association professionnelle des courtiers immobiliers du Québec (APCIQ) is a non-profit organization that brings together over 15,000 real estate brokers, representing nearly 92% of professionals in Québec. Its primary mission is to support, train, inform and defend its members. Moreover, the APCIQ provides its members with a range of tools and resources aimed at collecting and analyzing relevant information on the real estate sector.

Supervision and development of the real estate brokerage profession

Representing the majority of real estate brokers in Quebec, its members benefit from a wide range of services, including continuing education, market analysis, legal support, and marketing and public relations tools. It also plays a role in promoting and structuring the profession, by implementing initiatives to enhance its image. 

Created by the merger of three real estate boards

Experienced real estate brokers in Montreal remember the APCIQ by its former name, the Greater Montreal Real Estate Board (GMREB). Indeed, the APCIQ, founded in 2019, is the result of the merger of three regional boards: the CIGM, the Chambre immobilière de Québec (CIQ) and the Chambre immobilière des Laurentides (CIL). The aim of this association was to unite real estate brokers under a single provincial associative model. In order to centralize the promotion and protection of the profession.  As mentioned by co-founder Christiane St-Jean, the APCIQ is now in a position to speak with a single voice to better address the various issues facing this function, so that the discourse remains coherent, unique and credible in the eyes of all.

In short, the APCIQ is the body that oversees and supports the professional development of real estate brokers, while actively representing their interests within the real estate sector, in order to guarantee standards-compliant practice and ensure the defense of their rights in a constantly evolving market. In an economy where real estate transactions are becoming increasingly complex, it is crucial that brokers, who accompany their customers throughout the process, can feel protected by a competent entity that understands the challenges of the Quebec real estate market.

L'OACIQ

An organization dedicated to consumer protection

The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) plays a crucial role in protecting the public in real estate transactions. As an independent authority, the OACIQ is responsible for regulating and supervising the real estate brokerage profession in Quebec. It scrupulously ensures that real estate brokers comply not only with the laws and regulations in force, but also with the ethical standards established to ensure transparent, ethical and rigorous professional practice. In so doing, the OACIQ guarantees the safety and protection of individuals, whether buyers, sellers or tenants, by ensuring that their interests are always taken into account and defended in every real estate transaction.

Services for the general public

The organization offers a variety of tools, as well as a public assistance service available to both buyers and sellers. On their website, several means of communication are available to reach them. Finally, the OACIQ also requires real estate brokers to contribute to the Fonds d’indemnisation du courtage immobilier and to professional liability insurance, two measures designed to protect consumers.

In short, the APCIQ focuses on representing and supporting real estate brokers in the exercise of their profession, while the OACIQ’s mission is to protect the interests of the public and ensure that brokers’ practices comply with legal standards. Finally, the OACIQ and the APCIQ are two complementary organizations, each with a distinct but essential role to play in the smooth operation of the real estate sector in Quebec.

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]]> Provident Fund, Maintenance Booklet and Inspector Certification for the Real Estate Sector: Bill 16 https://yanicksarrazin.com/en/immobilier/news/provident-fund-maintenance-booklet-and-inspector-certification-for-the-real-estate-sector-bill-16/ Wed, 09 Oct 2024 16:42:00 +0000 https://yanicksarrazin.com/?p=62910 Table des matières On December 5, 2019, the provincial government adopted a major reform of the Régie du logement, marked by Bill 16. This initiative aims to regulate several aspects of the real estate sector, including building and divided co-ownership inspections, while revising the name and amending the Act respecting the Régie du logement and […]

L’article Provident Fund, Maintenance Booklet and Inspector Certification for the Real Estate Sector: Bill 16 est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Table des matières

On December 5, 2019, the provincial government adopted a major reform of the Régie du logement, marked by Bill 16. This initiative aims to regulate several aspects of the real estate sector, including building and divided co-ownership inspections, while revising the name and amending the Act respecting the Régie du logement and the Act respecting the Société d’habitation du Québec. It also makes changes to various legislative provisions relating to municipal affairs. The main objective of these reforms is to strengthen the protection of home buyers, co-owners, tenants and landlords. Although the bill was passed in December 2019, its implementation is spread over a three-year period, allowing for a gradual roll-out of the various regulatory measures.

In this article, our Montreal real estate brokers present the new measures underway and those to come.

Future Measures

Real estate regulations governing contingency funds

According to a survey conducted in 2015 by the Regroupement des gestionnaires et copropriétaires du Québec, the Association des professionnels de la construction et de l’habitation du Québec, and the Fédération des chambres immobilières du Québec, it appears that the majority of condominium administrators feel that the amount available in the contingency fund is insufficient. To remedy this situation, a new real estate regulation will require boards of directors to conduct a study every five years to assess the sums to be allocated to the contingency fund. Annual contributions to the fund will be based on the results of this study. The analysis must be produced by an accountant, engineer, chartered appraiser, architect or professional technologist.

This study will be mandatory from the first day following the first 3 years of the new standard’s implementation. In fact, the two main mortgage lenders, National Bank and Desjardins, recently announced that they will no longer finance buyers of divided co-ownerships without a contingency fund.

Condominiums required to keep a maintenance logbook

In Canada, there are currently no regulations requiring condominium boards of directors to keep a maintenance logbook. However, Bill 16, proposed by the provincial government, aims to impose this obligation on boards of directors. The building’s maintenance book will have to be updated every five years (or 10 years for buildings with 8 condos or less). The logbook must identify major maintenance work on the building’s common areas, the dates on which it was carried out, and the inspections performed. This information must be updated annually. The maintenance book must be produced by a professional such as an engineer, chartered appraiser, architect or professional technologist. In addition, syndicates of co-ownership will be required to maintain an up-to-date property condition certificate, and to provide a copy to any co-owner who requests it. These new regulations should come into force by the end of the year.

Creation of a public directory of home inspector certificate holders

At the moment, the profession of home inspector is not governed by any specific regulations. No training or license is required to exercise this profession. However, the new reform underway will introduce a new certificate for building inspectors, to be issued by the Régie du bâtiment du Québec. A public register will also be set up to identify holders of this certification. This initiative is designed to boost buyer confidence by giving them access to qualified building inspection professionals.

Measures in progress

Creating certificates of location

This new bill requires real estate developers to provide syndicates of divided co-ownership with certificates of location, as well as all available plans and specifications.

Protecting buyers' deposits

Builders and developers must protect deposits paid by purchasers of fractional co-ownership. This obligation applies to preliminary contracts signed on or after January 10, 2020.  Down payments requiring protection may be secured by a guarantee plan, insurance or a surety bond. Moreover, if a unit has not been delivered by the due date, developers and builders will be required to return the deposit to residential buyers. The date may refer to a specific date or to a period extending over several months (for example, autumn 2024). On the other hand, a clause in a preliminary contract could provide for the possibility of this date being changed due to unforeseen circumstances, if all parties agree.

Governance

Boards of directors must inform co-owners of their decisions within a reasonable period of 30 days. In addition, board members will have to consult the general meeting of co-owners before setting a special assessment or hypothecating the syndicate’s claims. In the event of disagreement, the court may set aside decisions made by the board of directors.

We invite you to keep abreast of the new measures introduced by the provincial government. These provisions are designed to strengthen the protection of home buyers, co-owners, tenants and landlords. Contact our real estate brokers today to learn more about Bill 16.

Sources : 

Condos: No Contingency Fund, No Mortgage. https://www.journaldemontreal.com/2024/09/19/condos-pas-de-fonds-de-prevoyance-pas-dhypotheque 

Divided and Undivided Co-ownership: How to Differentiate them? https://yanicksarrazin.com/immobilier/information-immobiliere/copropriete-divise-et-indivise-comment-les-differencier/  

How to choose your Home Inspector? https://yanicksarrazin.com/immobilier/information-immobiliere/comment-choisir-son-inspecteur-en-batiment/ 

Quebec gets tough on Condo Maintenance. https://www.journaldemontreal.com/2024/09/13/quebec-se-montre-plus-severe-pour-lentretien-des-condos. https://www.journaldemontreal.com/2024/09/13/quebec-se-montre-plus-severe-pour-lentretien-des-condos 

Measures applicable to divided co-ownership (condos) for owners and builders.  https://www.quebec.ca/habitation-territoire/achat-vente/condos-coproprietes/mesures-coproprietes 

Modernization of housing legislation. https://cdn-contenu.quebec.ca/cdn-contenu/adm/min/affaires-municipales/publications/habitation/BRO_PL16_DocumentBref.pdf

L’article Provident Fund, Maintenance Booklet and Inspector Certification for the Real Estate Sector: Bill 16 est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> How does an Exclusive Brokerage Contract – Purchase (BCP) work? https://yanicksarrazin.com/en/immobilier/buyer-information/how-does-an-exclusive-brokerage-contract-purchase-bcp-work/ Tue, 13 Feb 2024 19:24:55 +0000 https://yanicksarrazin.com/?p=54001 How does an Exclusive Brokerage Contract – Purchase (BCP) work?- Key Information When purchasing your property, you are represented by a real estate broker. This broker asks you to sign an Exclusive Brokerage Contract – Purchase. You are not certain about the specifics of this type of contract. Our real estate brokers will answer all […]

L’article How does an Exclusive Brokerage Contract – Purchase (BCP) work? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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How does an Exclusive Brokerage Contract - Purchase (BCP) work?- Key Information

When purchasing your property, you are represented by a real estate broker. This broker asks you to sign an Exclusive Brokerage Contract – Purchase. You are not certain about the specifics of this type of contract. Our real estate brokers will answer all your questions.

What is an Exclusive Brokerage Contract - Purchase?

When acquiring a divided co-ownership, undivided co-ownership, or a building with fewer than 5 units, it is important to note that signing an Exclusive Brokerage Contract – Purchase is an essential step. This form, mandatory according to the regulations of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), allows the real estate broker to represent their client exclusively and actively defend their interests. The purpose of this contract is to ensure your protection as a buyer.

The Exclusive Brokerage Contract – Purchase plays an important role in establishing a formal relationship between the client and the real estate broker, defining the terms and conditions of the collaboration. By signing this contract, the client grants the broker the exclusive mandate to search for and negotiate the purchase of the targeted real estate property, thus avoiding dual agency.

The main responsibilities of the real estate broker, as outlined in this contract, are to act professionally, transparently, and in accordance with the ethical standards of the profession. They must work in the client’s best interest by providing all relevant information and using their expertise to secure the best possible purchase terms.

The signing of the Exclusive Brokerage Contract – Purchase thus establishes a relationship of trust between the client and the broker, setting a clear framework for the search and acquisition of the real estate property. It is an essential measure to ensure a fair and successful real estate transaction, while safeguarding the client’s rights and interests throughout the purchasing process. The signing of the Exclusive Brokerage Contract – Purchase presents numerous advantages. Discover them in ”The Advantages of the Exclusive Brokerage Contract – Purchase.”

What are its components?

The Exclusive Brokerage Contract – Purchase contains several elements. Here are the main components that are generally included in this type of contract.

1. Identification of the Parties

In this first section of the contract, the aim is to specify the parties involved in the real estate transaction. The real estate broker must verify the identity of the buyer with a valid piece of identification such as a driver’s license, permanent resident card, health insurance card, or passport. The identification of the agency or broker must be included along with the broker’s complete details, including their name, address, contact information, and any relevant legal information for the real estate broker or agency concerned. The buyer’s identification must also be detailed with information such as the name, address, and contact details of the buyer

Identification of the parties - Exclusive Brokerage Contract-Purchase

2. Object and Term of Contract

This refers to the period during which the exclusive brokerage contract is in effect. It may include the start date and end date of the contract, as well as any conditions for its early termination.

Object and term of contract - Exclusive brokerage contract - Purchase

3. Essential Features of the Immovable

This is a detailed description of the real estate sought by the buyer. It may include details such as the type of property (apartment, house, income property, land), geographical location, etc.

Essential features of the immovable - Exclusive Brokerage contract - Purchase

4. Additional Features

This concerns additional information related to the property such as the number of bedrooms, desired amenities, etc.

Additional Features - Exclusive brokerage contract - Purchase

5. Desired Price and Terms of Purchase

In this section, the buyer must indicate the price range they are looking for, the date or timeframe desired for the signing of the deed of sale, as well as the date or timeframe desired for occupancy.

Desired price and terms of purchase - Exclusive brokerage contract - Purchase

6. Remuneration

The “Remuneration” section pertains to the terms and conditions related to the compensation of the real estate broker for their services. This generally includes the fees and other compensations that the broker will receive in exchange for their work in facilitating the purchase of real estate for the buyer. Typically, it is the seller who pays the broker’s compensation.

For the broker’s fees, it can be a percentage of the purchase price of the real estate, a flat fee, or another agreed-upon formula between the parties.

At the end of this section, it is also mentioned that the agency or the real estate broker will not be entitled to any compensation if:

-They hold an interest.

-A company or legal person under their control holds an interest.

OR

If any of the following persons sell a property to the buyer while holding interests:

-The spouse of the broker or the broker representing the agency with whom they are married or living in a common-law relationship.

-A legal person or company controlled by the spouse of the broker, or the broker representing the agency with whom they are married or living in a common-law relationship.

OR

If the seller does not sign the deed of sale or the payment of the purchase price is not made.

Remuneration - Exclusive brokerage contract - Purchase

7. Declarations and Obligations of the Buyer

In this section, the buyer acknowledges that the contract is exclusive and commits to negotiating the purchase of real estate through the broker during the specified period in the contract. If the buyer attends an open house for a property, they must inform the seller or the seller’s broker (listing broker) on site that they are represented by a broker.

Declarations and obligations of the buyer - Exclusive brokerage contract - Purchase

8. Obligations of the Agency or Broker

The contract outlines numerous obligations of the agency or broker. Here is an overview of the main obligations:

-The agency or broker must act in the best interest of the buyer, in accordance with applicable laws and regulations, demonstrating professionalism and ethics.

-The agency or broker must promptly present any written offer regarding the purchase, lease, or exchange of the property to the buyer.

-The agency or broker must disclose in writing to the buyer any compensation agreement related to the contract’s purpose.

Obligations of the agency or the broker - Exclusive brokerage contract - Purchase

9. Changes Affecting the Agency or the Broker Bound by a Brokerage Contract

Even if the contract is not terminable, it is specified that:

-If the broker ceases their activities to perform them on behalf of an agency, the buyer may terminate the contract. The buyer may also continue to deal with the broker and be bound to the agency. However, notice must be sent to the buyer, stating this change. If notice is not sent no later than the day the broker begins to act on behalf of the agency, the contract will be terminated.

-If the broker ceases their activities voluntarily or due to the suspension or revocation of their license, the contract is terminated from the complete cessation of the broker’s activities or the suspension or revocation of their license.

Even if the contract is not terminable, it is specified that:

-If the broker ceases their activities at one agency to perform them on behalf of another agency, the buyer may terminate the contract. The buyer may also continue to deal with the broker or agency and send notice expressing their choice to the agency. If notice is not sent no later than the day the broker ceases to act on behalf of the agency, the contract will be terminated.

-If the agency ceases its activities, the contract is terminated on the day of the agency’s cessation of activities. However, if the broker associated with that agency decides to operate independently, the buyer may choose to deal with that broker. The buyer is then bound to the broker on the date of termination of this contract on the same terms and conditions provided.

-Similarly, if the agency ceases its activities and the broker from that agency decides to operate within a new agency, the buyer may choose to be bound to that new agency. Written notice must be sent to this agency. The buyer is then bound to the agency on the date of termination of this contract on the same terms and conditions provided.

Change affecting the agency or the broker - Exclusive brokerage contract - Purchase

10. Other Declarations and Conditions

Additional statements and conditions can be added in this section.

Other declarations and conditions - Exclusive brokerage contract - Purchase

11. Annexes

Annex AG is intended to include specifics in case of insufficient space in the original contract. Less common, Annex DR is used to add supplementary information regarding remuneration and expenses.

Annexes - Exclusive Brokerage contract - Purchase

12. Interpretation

This section states that the masculine form has been used to lighten the text and that the contract is governed by the laws of Quebec.

Interpretation - Exclusive brokerage contract - Purchase

13. Conciliation, Mediation, and Arbitration

The OACIQ can act as a mediator or proceed to arbitration between the agency or broker and the buyer in case of dispute.

Conciliation, medidation and arbitration - Exclusive brokerage contract - Purchase

14. Signatures

This final section stipulates that the information collected in this contract is confidential and necessary for its execution. It is also mentioned that the agency or broker is registered with the Organisme d’autoréglementation du courtage immobilier (OACIQ), ensuring public protection.

Signatures from the agency or broker, as well as from the buyer, are required to finalize the Exclusive Brokerage Contract – Purchase.

Signatures - Exclusive brokerage contract - Purchase

Although the Exclusive Brokerage Contract – Purchase may seem complex at first glance, do not worry – your real estate broker is here to guide you at every step. As a professional in the real estate industry, your broker has the necessary expertise to explain each clause clearly and accessibly. You can rely on them to answer all your questions and dispel any doubts you may have. Their role is not only to assist you in completing the contract correctly but also to ensure that you fully understand the terms and conditions, and that you are comfortable with the mutual commitments. With this professional assistance, the process of purchasing your future property becomes simpler, more transparent, and above all, more efficient.

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]]>  What are the differences between a residential building and a commercial building? https://yanicksarrazin.com/en/immobilier/buyer-information/what-are-the-differences-between-a-residential-building-and-a-commercial-building/ Thu, 05 Oct 2023 19:02:43 +0000 https://yanicksarrazin.com/?p=46348 Differences between a residential building and a commercial building- Key Information What is a residential building? It is a space where individuals and families live and reside. Residential real estate pertains to properties used for housing purposes. Single-family homes, apartments, condos, and apartment buildings with four units or fewer are considered residential buildings. Owners of […]

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Differences between a residential building and a commercial building- Key Information

What is a residential building?

It is a space where individuals and families live and reside. Residential real estate pertains to properties used for housing purposes. Single-family homes, apartments, condos, and apartment buildings with four units or fewer are considered residential buildings.

Immeuble résidentiel - Montréal

Owners of residential real estate can be individuals, real estate investors, or companies specializing in the residential sector. For the purpose of renting the property, the landlord must fill out the mandatory lease from the Tribunal administratif du logement. In residential real estate, the lease is typically of shorter duration, usually ranging from six to 12 months. When acquiring a used residential real estate property (not considered new), the transaction is exempt from GST (Goods and Services Tax) and QST (Quebec Sales Tax).

What is a commercial building?

Immobilier commercial - courtiers immobiliers Montréal

It is a space designed to house commercial, industrial, office, or retail activities. Commercial real estate pertains to properties used for commercial or professional purposes. A building is considered commercial when it has five or more residential units. A mixed-use building is also considered commercial. It features a structure where the lower levels are intended for businesses or offices, while the upper floors can be configured as apartments or residential units. Offices, shopping malls, warehouses, hotels, restaurants, and industrial complexes are examples of commercial buildings.

Owners of commercial real estate can be institutional investors, businesses, real estate developers, or individuals. When purchasing a commercial property, GST (Goods and Services Tax) and QST (Quebec Sales Tax) apply to the portion representing the percentage used for commercial purposes. Commercial real estate is often leased to businesses or commercial tenants, which can generate higher income compared to residential real estate.

Commercial leases

Commercial leases typically have longer terms and specific conditions. Some leases can have a duration of five to ten years. Moreover, in the commercial sector, it is not mandatory to use leases from the Tribunal administratif du logement, as is the case in residential real estate.

Different rules apply to commercial leases. For instance, the owner of a commercial property can request a security deposit from the tenant, which is not allowed in residential leases. They can also prohibit subleasing or the termination of the lease by the tenant. At the end of the lease, the tenant must vacate the commercial space, whereas in residential real estate, the lease is automatically renewed. Additionally, in case of a dispute, the owner and the tenant must go to the Superior Court or the Court of Quebec, rather than the Tribunal administratif du logement as is the case in residential real estate.

Different terms are used to refer to what landlords and tenants must pay in a commercial lease:

-Gross lease: This is a lease where everything is included. The tenant only has to pay their rent. Costs related to the property are included in the rent or paid by the landlord. Charges included in a gross lease may encompass utilities (such as water, electricity, and heating), maintenance of common areas, property taxes, basic insurance costs, and similar expenses. However, it’s important to note that how these charges are apportioned between the tenant and the landlord can vary from one gross lease to another.

-Triple Net Lease (Net, Net, Net): In a triple net lease, the tenant is responsible for paying, in addition to their base rent, the expenses related to the property (cleaning, electricity, municipal or school taxes, etc.). In a triple net lease, the tenant assumes the responsibility of paying not only the base rent but also all operating expenses of the property, including property taxes, insurance premiums, and maintenance costs.

Key differences between a residential building and a commercial building

The main distinctions between residential and commercial real estate lie in the use of the properties. Residential buildings are intended for habitation and living, whereas commercial buildings are designed to house businesses and economic activities. They encompass different types of properties. A residential building can be a single-family home, while a commercial building can be a hotel, for example. The type of lease and the lease duration will also be different. A commercial lease will typically have a longer duration than a residential lease and is not bound by the mandatory model provided by the Tribunal administratif du logement. As mentioned earlier, there are many distinctions between residential and commercial leases.

Finally, the financial objectives associated with them will differ. The primary objective of residential real estate is generally to provide a living space for its occupants. While some individuals may invest in residential properties for rental purposes, the priority is often the quality of life for the residents rather than income generation. On the other hand, the primary goal of commercial buildings is to generate income from the economic activities they house. Commercial property owners can generate income in the form of rent and may also benefit from the appreciation of real estate values based on business performance.

Catalina Camacho, residential and commercial real estate broker, answers this question

Questions about the subject? Contact a real estate broker

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]]> The FHSA or the Tax-Free First Home Savings Account https://yanicksarrazin.com/en/immobilier/news/the-tfsapp-or-the-tax-free-savings-account-for-the-purchase-of-a-first-property/ Fri, 23 Jun 2023 18:23:52 +0000 https://yanicksarrazin.com/?p=26060 The FHSA – Key information Buying a home is an important investment that can lead to one of your best investments for life. There are many potential buyers, but there are also many who are having trouble getting the down payment they need for such a large real estate purchase, especially with rising property prices. […]

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The FHSA - Key information

Buying a home is an important investment that can lead to one of your best investments for life. There are many potential buyers, but there are also many who are having trouble getting the down payment they need for such a large real estate purchase, especially with rising property prices.

Since the last election campaign, the Liberal government, under the leadership of Justin Trudeau, had mentioned the possibility of introducing an RDSP. This registered program would be dedicated to first-time buyers under the age of 40 to help them access their first home. However, the idea of the RDSP was abandoned and replaced by the FHSA or tax-free savings account for first-time home buyers. The FHSA would be in place as of April 2023 and has certain features. 

The FHSA : what does it consist of?

The Tax-Free First Home Savings Account (FHSA) is designed to help first-time buyers save for their down payment. The main idea is to help young people become homeowners through the housing frenzy. The FHSA combines a variety of TFSA (tax-free savings account) and RRSP (registered retirement savings plan) benefits. 

In this form of savings, an individual can contribute up to a maximum of $8,000 per year, for a maximum accumulation of $40,000. These contributions are tax-free and the accumulated income is tax-free, so there is nothing to pay back over the years. Withdrawals from the purchase of a property are then also non-taxable.

Its eligibility criteria

In order to access and benefit from the TFSAPP, certain eligibility criteria must be met:

-You must be a Canadian citizen and resident 18 years of age or older.

-There is no maximum age limit for opening an account.

-You must not have acquired a property when opening an account or four years before opening it. It must therefore be a first real estate purchase.

Its characteristics

The FHSA also has certain features:

-The maximum contribution per year is $8,000.

-Unused contributions can be transferred to the following year.

-The maximum FHSA limit is $40,000.

-Like an RRSP, contributions are fully tax deductible. This increases the ability to save. 

-Withdrawals related to the purchase of a property are non-taxable. 

-These non-taxable withdrawals will be used to purchase a single property for life.

-If a withdrawal is made and has a purpose other than the purchase of real estate, the amount of the withdrawal will then be taxable. 

-The HBP (home buyers’ plan) and FHSA can be combined to purchase your first home.

-The money can be invested in a FHSA for up to 15 years or until the age of 71. If this maximum period is reached, the account must be closed and the total amount of the accumulated money transferred to an RRSP. 

–If you want to purchase a property with your spouse, you can combine the accumulated amount of your FHSA with another FHSA account for the down payment.

The FHSA then presents certain constraints, but also significant advantages for a first-time buyer. 

What types of investments can you hold in a FHSA?

Other products will be offered over time. Here are the ones currently known:

-Stocks, options and bonds

-Savings deposits

-Exchange Traded Funds (ETFs)

-Cash

What are the steps when buying a property?

-Have a written agreement to buy in Canada
-Be considered a first buyer (of a first property)
-Make the withdrawal of the CELIAPP 30 days after the purchase of the property, thus following the passage to the notary
-Closure of FHSA must occur on December 31 of the following year of the first eligible withdrawal

What happens if you don’t buy a property?

After the maximum period of 15 years, you have two options. You can withdraw the full amount accumulated in your FHSA, but it will be taxed. The second option is to transfer FHSA amounts to your RRSP or RRIF (Registered Retirement Income Fund) without tax impact without affecting your RRSP contribution room.

How do I open a FHSA account?

The FHSA account is available in the various banks across the country. It’s a simple process to open an account. Make an appointment with your bank advisor, in person at the branch, by phone or virtually.

Available in 2023, the Tax-Free First Home Savings Account (FHSA) is designed to help first-time buyers through the housing frenzy to save for their down payment. The FHSA has many advantages, such as improved ability to save, with fully tax-deductible contributions and non-taxable withdrawals on the purchase of your first home. In addition, the maximum FHSA limit is raised to $40,000, for a maximum annual contribution of $8,000. The FHSA has many advantages for the purchase of your first property.

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L’article The FHSA or the Tax-Free First Home Savings Account est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> How much do you need for a down payment? https://yanicksarrazin.com/en/immobilier/real-estate-news/how-much-do-you-need-for-a-down-payment/ Sat, 13 May 2023 20:21:13 +0000 https://yanicksarrazin.com/?p=19838 Buying a property is an investment involving different stages. An essential step in this process is to finance the property that you want to buy: it is the down payment. But what exactly is the down payment? What are the different down payment percentages depending on the type of property? Here’s a quick overview of […]

L’article How much do you need for a down payment? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Buying a property is an investment involving different stages. An essential step in this process is to finance the property that you want to buy: it is the down payment. But what exactly is the down payment? What are the different down payment percentages depending on the type of property? Here’s a quick overview of what a down payment is to facilitate your understanding.

Down payment : what is it?

A down payment is a portion of the amount you will need to take out of your savings to complete the purchase of the desired property. Mortgage loan insurance, commonly known as mortgage, will then pay off the remaining balance of the property.

It is important to know that the higher the down payment, the lower the loan and the interest. The lower the down payment, the higher the mortgage will be. Also, depending on the amount of the property, as well as the type of property (residential or commercial), the down payment rate will differ.

Residential properties

Single-family and duplex homes

Property of $ 500,000 or less

The minimum down payment for a property of $ 500,000 or less is usually 5% of the purchase price for the owner-occupier. For example, if the property was worth $ 400,000, the amount paid for it would be $ 20,000. The mortgage amount will then be $ 380,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property from $ 500,000 to $ 999,999

The down payment for a property of $ 500,000 or more is 5% of the first $ 500,000 and 10% of the amount exceeding $ 500,000. This then means that for a property of $ 600,000, the down payment will be $ 35,000.

This amount was obtained by calculating:

5% x $ 500,000 = $ 25,000

10% x $ 100,000 = $ 10,000

So $ 25,000 + $ 10,000 = $ 35,000

Property of $ 1,000,000 or more

The down payment for a property of $ 1 million or more is 20%. For example, if a property is sold for $ 2 million, then the down payment for that property will be $ 400,000.

Triplex and quadruplex

Property of 500 000$ or less

The minimum down payment for a triplex or quadruplex of $ 500,000 or less is usually 10% of the purchase price for the owner-occupant. For example, if the property was worth $ 400,000, the amount paid for it would be $ 40,000. The mortgage amount will then be $ 360,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property from 500 000$ to 999 999$

The minimum down payment for a triplex or quadruplex of $ 500,000 or less is usually 10% of the purchase price for the owner-occupant. For example, if the property was worth $ 400,000, the amount paid for it would be $ 40,000. The mortgage amount will then be $ 360,000. However, it should be noted that interest rates and additional amounts are added to this mortgage.

Property of 1 000 000$ or more

As with single-family homes and duplexes, the down payment for a triplex or quadruplex of $ 1 million or more is 20%. For example, if a property is sold for $ 2 million, then the down payment for that property will be $ 400,000.

Rental properties

It should be noted that if the owner does not live on the premises of his property, that is to say that he is not an occupying owner and that he has his accommodation(s) rented, he will then have to pay a down payment of 20% for a single-family house, a duplex, triplex or quadruplex.

In the current market, for buildings with five or more units, a down payment of 30% to 50% is required by the majority of financial institutions, regardless of whether the owner remains in the property or not.

The FHSA

The Tax-Free Savings Account for First-Time Home Buyers (FHSA) aims to assist first-time buyers in saving for their down payment. The primary idea is to help young individuals become homeowners amidst the real estate frenzy. The FHSA combines various advantages of the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). For more information on the FHSA, please refer to our article on the subject.

Down payment is a fairly complex concept and will vary depending on the type of property and its purchase price. For single-family and duplex homes of $ 500,000 or less, the down payment is usually 5%. Properties between $ 500,000 and $ 999,999 have a down payment of 15% while those with an amount of $ 1 million and more will require a down payment of 20%. For triplexes and quadruplexes up to $ 999,999, the down payment will be 10%. It should be noted that properties that are not occupied by their owner choose a down payment of 20%. Rental properties can vary between 20% and 25% of the down payment depending on the type of property.

It should also be noted that the down payment for foreign investments differs and is at least 35% for residential properties and revenue buildings. See our article on the Prohibition on the Purchase of Residential Properties by Non-Canadians Act for more information on foreign investment. 

With this wealth of information in mind, it is recommended that you be accompanied by your financial institution and by a real estate broker who will explain in detail the intricacies of the down payments required for each type of property.

Contact one of our real estate broker for additional information

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L’article How much do you need for a down payment? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? https://yanicksarrazin.com/en/immobilier/seller-information/sellers-and-buyers-what-are-the-costs-to-pay-at-the-notary-and-the-mandatory-documents-to-provide/ Wed, 19 Apr 2023 20:18:23 +0000 https://yanicksarrazin.com/?p=39526 Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? – Key information In a real estate transaction, going to the notary is the last step in formalizing the sale of a property. Signing the act of sale can cause some anxiety, excitement and many questions. Since […]

L’article Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? - Key information

In a real estate transaction, going to the notary is the last step in formalizing the sale of a property. Signing the act of sale can cause some anxiety, excitement and many questions.

Since our real estate brokers accompany many clients in this last important step, whether for the sale or purchase of their property, our members want to help you better distinguish all the subtleties of the transition to the notary. Documents required at the various costs involved: this major step will no longer have any secrets for you!

The role of the notary

In a real estate transaction, the notary holds a neutral and central role. He/she must respect the rights of both the seller and the buyer. His/her tasks are many: 

 • The notary will receive the promise to purchase, examine the title deeds, the seller’s certificate of location, if applicable, the marriage certificate or the divorce certificate.

 • The notary will write the deed of sale of the property, making sure that the facts are true in the promise to purchase. It is the signing of the bill of sale that formalizes the sale.

 • The notary will write the mortgage deed. This is a document detailing all the components of the buyer’s loan (loan principal, interest rate, amortization period, etc.) related to the financing of the property. The notary verifies that the provincial and municipal taxes have been paid and that the mortgage balance has been paid in full by the seller. This will result in the seller’s mortgage being written off.

 • The notary then publishes the deed of cancellation in the land register. The land register is a report that determines the property rights. The deed of cancellation in the land register then allows the suppression of the right of ownership and then, its sale.

Required documents

During the visit to the notary, different documents will be requested.

For the buyer and seller

• Two pieces of identification that are valid, including one with a photo (e.g., driver’s license, health insurance card, passport, birth certificate, etc.),

• The detailed contact details of the parties,

• A marriage contract if you are married

• A judgment and divorce certificate if you’re divorced,

• A court file number if you are in the process of divorce.

For the buyer

• Mortgage instructions from your financial institution

• Proof of home insurance

For the seller

For more detailed information on these many mandatory documents when selling, see this article.

• The bill of sale,

• The mortgage deed,

• The certificate of location,

• Act of transmission if it is an estate,

• Statement of school and municipal taxes.

Montreal, typical victorian house with exterior staircase in the Plateau Mont-Royal district in autumn

Documents specific to different types of properties

Divided co-ownership

• The declaration of co-ownership

• The DRCOP (Request for information to the syndicate of co-ownership). This document is completed by the union to ensure there is no arrears, special dues or other necessary information on the property.

Undivided co-ownership

• Joint ownership agreement

Plexes: duplex, triplex, quadruplex (...)

• Leases

• Notices of renewal or non-renewal

Fees payable to the notary

Fees are also involved in the transaction and will have to be paid by the buyer and seller.

Costs incurred by the buyer

• The chain of title to a property. 

• Analysis of the certificate of location

• Copies of the bill of sale

• Preparation of allocations (e.g., school and municipal taxes, condo fees, revenues, heating oil)

• Registration in the land register of the deed of sale and the mortgage deed

• Notary fees (notary fees vary depending on the type of property, as well as its value)

Costs incurred by the seller

• Title correction (if required)

• Mortgage discharge:

○ Application to the creditor of the statement of account for repayment

○ Preparation of the mortgage discharge

○ Sending the draft discharge and repayment to the creditor

• Verification of taxes (municipal and school taxes)

• Administration of money in trust:

○ Preparation of cheques to various parties (real estate broker, land surveyor, mortgage creditor and payment of municipal taxes)

○ Preparing the transfer of funds to the mortgagee for repayment

• Bank transfer sales product:

○ Preparation of a bank transfer for the sale product and scan the confirmation into a file

○ It should be noted that picking up your cheque by hand avoids this cost

• Taxable disbursements (e.g., school and municipal tax audits)

• Notary fees: the notary’s hourly rate varies depending on the notary’s expertise and the urgency of the situation

In the case of a co-ownership

• Communication with the co-ownership manager or syndicate 

○ Obtaining information relevant to the transaction (condo fees, union compliance, etc.)

○ Obtaining a copy of the syndicate co-ownership

○ Payment of condo fees, if applicable.

○ Sending information to transfer the Syndicate

In some situations, the notary may incur unexpected additional charges. This is important to expect. A popular example of additional costs is title insurance.

• Title insurance: title insurance is a damage insurance. When the notary examines the securities and the certificate of location, he/she can detect irregularities (risks). If the transaction takes place soon and there is not enough time to correct these irregularities, the notary can then find a title insurance provider to cover these risks. It is the buyer who will be the insured and the seller who will have to assume the payment of the premium due to the right of ownership to which he/she is bound.

Notaire-Courtiers Immobiliers Montréal

Your real estate broker at your side

Don’t forget that your real estate broker is always at your side, even during the transition to the notary. If misunderstandings arise before, during or after the notary, do not hesitate to let your real estate broker know in order to clarify everything. 

With this information in hand, whether as a buyer or as a seller, we hope that your transition to the notary takes place with confidence!

Summary

The sale of a property is formalized by signing the act of sale with the notary. However, documents are mandatory for both the buyer and the seller. For example, during the visit to the notary, each party is asked for two pieces of identification and, if necessary, marriage or divorce certificates. For the buyer, mortgage instructions from the financial institution as well as proof of home insurance are required. For the seller, several documents are necessary such as previous sales documents, the mortgage deed, the certificate of location and others.

In addition, fees must be paid by the buyer and seller. These fees differ. Among the costs incurred by the purchaser is the registration of the deed of sale in the land registry and the mortgage deed. At the seller, one of the fees is a mortgage discharge. 

Although this last stage of the real estate transaction can be complex, know that your real estate broker is there to accompany you and answer your questions. Let him/her know your concerns. He/she’s here to provide his/her expertise. 

Questions about going to the notary? Contact one of our real estate brokers to enlighten you on the subject.

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L’article Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> Prohibition on the Purchase of Residential Property by Non-Canadians Act https://yanicksarrazin.com/en/immobilier/news/prohibition-on-the-purchase-of-residential-property-by-non-canadians-act/ Wed, 29 Mar 2023 11:00:58 +0000 https://yanicksarrazin.com/?p=34081 Prohibition on the Purchase of Residential Property by Non-Canadians Act The Government of Quebec outlined many housing measures in its last budget. These measures included the introduction of Bill 5, which prohibits the dual agency of a real estate broker. This new law was introduced on June 10, 2022. But it was only a few […]

L’article Prohibition on the Purchase of Residential Property by Non-Canadians Act est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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Prohibition on the Purchase of Residential Property by Non-Canadians Act

The Government of Quebec outlined many housing measures in its last budget. These measures included the introduction of Bill 5, which prohibits the dual agency of a real estate broker. This new law was introduced on June 10, 2022. But it was only a few weeks later, on June 23, 2022, that the bill entitled the Prohibition on the Purchase of Residential Buildings by Non-Canadians Act was introduced this time by the federal government. This latest real estate law will come into force on January 1, 2023 and is already causing many questions. Here is some information that we hope will help you better understand this new legislation and its impact on the real estate community. 

Why introduce a Prohibition on the Purchase of Residential Properties by Non-Canadians Act?

This legislation was designed by the federal government to reduce inflation and stabilize the housing market following the pandemic. With the introduction of this law, a more precise framework and regulations on the role of foreign investors will be highlighted. That way, there could be better control over foreign investment and also to facilitate access to properties for Canadians. 

What is this new law?

This new law, known as temporary, prohibits non-Canadians (foreigners and non-Canadian businesses) from acquiring residential properties in Canada for two years, until December 31, 2024. Direct or indirect purchases (through corporations, trusts or others) are prohibited. 

To whom does the prohibition on the purchase of residential buildings apply?

This prohibition applies to non-Canadians. Canadian citizens are therefore not subject to this prohibition.  A non-Canadian is defined as an individual other than a Canadian citizen. This also includes publicly traded companies and entities that are not subject to federal and provincial laws and controlled by a non-Canadian.

Who could be exempted from this prohibition on the purchase of residential properties by non-Canadians?

– Canadian citizens

– Permanent residents 

– Foreign students who are going to obtain permanent residence: the latter must meet the following criteria: during the 5 years preceding the purchase, the buyer must have filed his tax returns in accordance with the Income Tax Act. During this same period, he must have been present on Canadian soil for a minimum of 244 days. In addition, the coveted property must not exceed $500,000.

– Persons holding a work permit must meet the following criteria: their work permit must be valid for 183 days or more from the date of purchase. In addition, they must not have purchased more than one residential building.

– A non-Canadian purchasing a property with their Canadian spouse/common-law partner

– People fleeing an international crisis

What types of residential buildings are covered by this act?

– Individual houses

– Semi-detached houses

– Condominiums (divided and undivided)

– The duplexes

– The triplex

– Other similar properties

These residences are primary residences. Secondary residences, as well as vacant land zoned for residential or mixed use, would be excluded from this prohibition. Non-Canadians could then purchase the land and use it for any purpose, such as residential development.

What are the penalties if the Prohibition on the Purchase of Residential Properties by Non-Canadians Act is not complied with?

Significant penalties may apply if a non-Canadian acquires a residential property in Canada. The same applies to any person who advises and provides assistance to that person. These individuals will be convicted and will face costly fines of up to $10,000. 

In the event that a person is convicted, an order to sell the property may also be sought. In this case, the sale price of the illegally purchased property could not exceed the purchase price of the property. Therefore, no monetary benefit could be obtained. 

What is the real estate broker’s role in enforcing the prohibition against a non-Canadian purchasing a residential property?

The real estate broker must have a perfect knowledge of this new law and will have the role of transmitting all information about it to his clients (Canadians and non-Canadians). A brokerage practice based on transparency will be all the more necessary. 

The real estate broker will also have the role of acting with integrity because, as mentioned above, any assistance given to a non-Canadian regarding the purchase of a residential property may be sanctioned. It is then important for the real estate broker to understand all the particularities of this law in order to always act with honesty and morality. 

There are a lot of conversations about the prohibition on the purchase of residential properties by non-Canadians Act. On January 31, 2023, a Superior Court judgment was issued. It mentioned that this law would not apply to non-Canadians whose offers to purchase were accepted before January 1, 2023. Clarifications were then made on the matter. Although a certain amount of information on this law has been revealed, other questions remain. The law will not be enforced until January 1, 2023. The government will still have to clarify the issue of exceptions for the types of residential properties and other specific situations that would not be part of the prohibition. Clarifications will be made in the coming months.

Synopsis

The Prohibition on the Purchase of Residential Real Property by Non-Canadians Act was passed on June 23 and will come into force on January 1, 2023. This new law prohibits non-Canadians from acquiring a residential property in Canada for two years. In addition to Canadian citizens who are not covered by this act, the main people who could be exempted from this prohibition on the purchase of residential properties are permanent residents, those in the process of becoming permanent residents and those with work permits. The residential buildings concerned in this law refer to single and semi-detached houses, condominium dwellings (divided and undivided) and buildings of one to three units (duplex and triplex). The penalties are severe if a non-Canadian purchases a residential property in Canada. It is the same for the person who will help him. Being found guilty and having to pay a fine of up to $10,000 are among the main consequences of this offense. With the arrival of this new law, it is important that real estate brokers are familiar with the specifics of this new change in real estate and pass this information on to their current and potential clients. Integrity and compliance with the law are also important to ensure a transparent brokerage practice.

Questions about this new law? Contact one of our real estate brokers to find out more

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L’article Prohibition on the Purchase of Residential Property by Non-Canadians Act est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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