Courtier Immobilier Montréal Yanick E Sarrazin

The Carlyle

815 Plymouth avenue

|High-end rental units in the Town of Mount Royal|

Discover some of the units available

Discover the plans

A new construction in the Town of Mount Royal

Discover the new project of high-end rental condos on 7 floors: The Carlyle. This new construction is an achievement of JADCO, a respected real estate leader in design, construction, investment management and property management. Project delivery date is July 1 st 2023. 

What awaits you at The Carlyle? Apartments with up to 3 bedrooms, spacious and bright living spaces, refined kitchens and quality materials: the units have all the necessary features to charm you! 

Enjoy all the amenities the building has to offer : business center, VIP lounge, gym, children’s play room, green spaces and an indoor pool. 

A unique location in Montreal: live in the popular Town of Mount Royal, close to the parks, public transport, as well as the shops and restaurants of Carré Lucerne.  Plan your site visit now!

Interested in seeing the additionnal units available?

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The Carlyle - An exclusive lifestyle

Model Unit

About these housing units

Configuration

  • New construction
  • Spacious contemporary units
  • Open living spaces
  • Abundant windows
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Materials

  • High-end materials
  • White oak floors
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Inclusions

  • Stove
  • Refrigerator
  • Dishwasher
  • Washer and dryer
  • Warm water
  • Air conditioning
  • Lighting

Outdoor Spaces

  • Inner courtyard and green spaces

Parking

  • Indoor parking is available for a monthly payment

Tranquility & urban living

These rental units are in a prime location in Montreal in the peaceful and green spaces of Town Mont Royal.  Live in a sought after neighborhood, only a few minutes away from De La Savane metro station, parks of the area, main routes as well as the shops and restaurants of Lucerne Square. 

Public Transport

  • De la Savane metro station
  • Namur metro station
  • The Réseaux Express Métropolitain (REM)

Schools

  • Saint-Clément-Ouest primary school
  • Saint-Clément Academy
  • Carlyle primary school
  • Dunrae Gardens primary school
  • Laurentide primary school
  • Mont-Royal high school
  • Pierre Laporte high school
  • University of Montreal
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Green Spaces Nearby

  • Kindersley Park
  • Ostell Place
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Within a 1 km radius

Pharmacies
  • Grocery stores
  • Restaurants
  • Ice cream parlours

The neighborhood's best spots

A wide range of products and services are available in the Town of Mount Royal.

Here is an overview of two favorite addresses to discover in the sector:

Bacaro Pizzeria - Authentic Italian Flavours

  1. @bacaropizzeria

Located in Lucerne Square, Bacaro Pizzeria is a restaurant offering tasty Italian dishes. On the menu, a variety of pizzas and delicious pasta to be enjoyed in a relaxed atmosphere. 

At Bacaro Pizzeria, the wine list offers a mix of private imports and local brands, to the delight of wine lovers. 

Do you have a sweet tooth? Nutella doughnuts and Sicilian cannolis are a must!

With more than eight locations throughout Montreal, Bacaro Pizzeria is an Italian restaurant to discover to spend pleasant evenings with family and friends!

  • Bacaro Pizzeria is located at 2358 Chemin Lucerne in the Town of Mount-Royal.

Conefetti Gelateria - Sweet Treats

  1. @conefetti.gelato

Conefetti Gelateria is an ice cream parlour in one of the oldest houses in the Town of Mount Royal. For over 14 years, this charming business offers a panoply of gelato flavors : black licorice, matcha, tiramisu to Ferrero Rocher! Chosing your flavor will be a tough decision!

If ice cream is not your cup of tea, you can also sip a delicious coffee on their charming terrace. 

 At Conefetti Gelateria, you will be delighted!

The Carlyle on Instagram

Location of these units in the Town of Mount Royal

Interested in The Carlyle rental units? Contact us!

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.

Consult other real estate news

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

Consult other real estate news

Selling without legal warranty - Key Information

You are looking for a property in Montreal with your real estate broker. When you search online, the detailed sheets of properties have the mention of “sale without legal warranty of quality, at the buyer’s risk and peril. As you are not certain of the meaning of these terms and their implications, you then ask your real estate broker for further information. 

Your real estate brokers answer all your questions:

What is a legal warranty in real estate?

In Quebec, the law provides that the sale of real estate must guarantee the quality and the right of ownership. These two guarantees constitute the legal warranty.

The guarantee of quality concerns hidden defects. When we talk about hidden defects, we are talking about a “hidden” defect that will undermine the quality of the building. This defect is known by the seller and has been omitted from the Seller’s Declaration (VIS). In addition, the hidden defect existed at the time the purchase but was unknown to the buyer. The hidden defects are not usually not easily noticeable and can be for example mold in the walls, cracks in the foundations, moisture on the ground, water infiltrations, etc. 

The guarantee of the right of ownership (security of title) is related to the vices of title of ownership. This would refer to a situation that would prevent the buyer from exercising his right of ownership. For example, the seller would not have repaid his mortgages in full and would have failed to mention it to the buyer. 

What is a sale without legal warranty “at the buyer’s own risk”?

A sale without legal warranty implies that the buyer agrees to acquire the property at his “ own risk and waives’’. This means that in the case of hidden defects, recourse against the seller is limited, hence the importance of pre-purchase inspection. The seller should still indicate the past defects and complications with the property and must act in good faith, in order to be transparent. The buyer must read it, but understands that he or she has no guarantee on the quality of the property. 

For a sale without legal warranty to take place, there must be a mention in the Seller’s Declaration or the Offer to Purchase. This must also be indicated in the act of sale. 

The phenomenon of sale without legal warranty has been observed in real estate transactions for several years in Quebec. However, this phenomenon has grown since 2019, during the pandemic. Buyers may decide to waive the legal warranty in order to acquire the coveted property more easily. Sellers, on the other hand, sell their property without legal guarantee, thinking that they will let go of their responsibility. But is it really a good idea?

What are the implications of selling without a legal warranty?

Selling without a legal warranty has significant negative impacts, especially on the value of the property. Indeed, according to a report from JLR, a property sold without legal warranty would be sold 8% to 11% less than with. 

In addition, in order to make an offer more attractive, a buyer can waive the legal warranty and abandon the pre-purchase inspection. The buyer then has no recourse against the seller and is then responsible for the hidden and apparent defects of the property. Fixing these defects can result in a considerable amount of money, which is never desirable.

The reference to “at your own risk and waives” should be taken seriously.

In what situations does a sale without legal guarantee take place?

Some sellers opt to sell their property without legal guarantee. However, it is in these 3 following situations that the sale without legal warranty is the most common. 

– Senior sellers: Senior sellers often decide to sell their property without a legal warranty in order to avoid liability as they approach retirement. They then move towards a smaller home.

-Estates: the heirs of a property may not have a good knowledge of its history. Indeed, the property may be old and they do not know if there have been problems in the past regarding the quality of the building. In order to protect themselves and avoid the risk of potential lawsuits, the heirs will then sell without legal warranty.

-Bank repossessions: when an owner no longer pays his mortgage, a formal notice is sent and a court judgment is issued a few months later. The bank then takes possession of the property and makes a direct sale. The buildings taken over by the banks are always sold without legal warranty, as a bank does not want to be sued for hidden defects. 

Growing in popularity, selling without a legal warranty is a risky and high-risk practice. Before selling, ask your real estate broker for an expert opinion on the subject, which will guide you to the most informed decision.

The phenomenon of sale without legal warranty has been observed in real estate transactions for several years in Quebec. However, this phenomenon has grown recently with the pandemic. Sale without legal warranty implies that the buyer agrees to acquire the property at his “own risk and waives’’. This means that in case of hidden defects, no recourse against the seller will be possible, hence the importance of the pre-purchase inspection. In these three situations the sale without legal guarantee is more common: when the seller is an older person, during a succession or a bank resumption. Despite its growing popularity, selling without a legal guarantee is not recommended because it is a dangerous practice that does not provide protection to the buyer.

Questions about selling without legal warranty? Contact one of our real estate brokers

Consult other buyer information

5282 - 5290 AVENUE PAPINEAU, PLATEAU-MONT-ROYAL, H2H 1W2

LOT AREA: 4,128 SF

NUMBER OF ROOMS : 27

YEAR BUILT : 1925

GOLDEN OPPORTUNITY IN THE HEART OF THE PLATEAU. For investor or owner occupant. Quintuplex with high potential income and many recent renovations. Modern kitchens and bathrooms. Washer-dryer installations. Wooden floor. A few steps from Laurier Park and the charming shops of Laurier Avenue. Don’t miss this opportunity!

Pierre Viens - Courtier immobilier résidentiel et commercial

Pierre Viens

Residential and commercial real estate broker
Cell : 514 886-6270
E-mail : pierreviens@hotmail.com

Does this income building with high potential income interest you?

Contact me

VISIT BLOCKS (appointment only):
– Saturday, July 9th from 1:30 to 2:30 pm
– Sunday, July 10th from 1:30 to 2:30 pm
– Monday, July 11th from 5pm to 6pm

A new certificate is currently on order.

Global discount rate 2022-2023 : 4,02%

**At the seller’s request, the inspector must be chosen by mutual agreement. The inspector must be a member of a professional order or a recognized association; he must hold valid professional liability insurance in an amount greater than the purchase price. The inspector must hold a level 1 certificate for the use of a thermography device.

Land dimensions 28′ X 147′ à

Field’s surface 4,128 sq. ft.

Parking (total)

Aisle : 6

Zoning Residential

Sale without legal warranty of quality, at the buyer’s risk and peril.

Electricity

Wall-mounted heat pump

Municipality

Municipality

For all units (5): Washer, dryer, dishwasher and wall mounted heat pump.

Window treatments, furniture and personal effects of tenants

ASSESSMENT (2022)
TAXES
  • (2022)
  • (2022)
GROSS YEARLY REVENU (POTENTIAL)
ANNUAL EXPENSES
Contact us

Contact Pierre Viens - Residential and commercial real estate broker

SEE MY PROPRETIES FOR SALE

Open house
27

Montréal

Two or more storey

5913, Rue Waverly, Le Plateau-Mont-Royal (Montréal)
4
2
1910
2212sq/ft

1 499 000$

Open house
Featured
19

Montréal

Apartment

3535, Av. Papineau, app.801, Le Plateau-Mont-Royal (Montréal)
1
1
1971
540sq/ft

389 000$

46

Montréal

Quintuplex

1001 - 1003, Boul. St-Joseph E., Le Plateau-Mont-Royal (Montréal)
2
1
1930

2 749 000$

37

Montréal

Duplex

6594 - 6598, Av. De Lorimier, Rosemont/La Petite-Patrie (Montréal)
3
3
1925
2249sq/ft

1 289 000$

26

Montréal

Plex

3950 - 3956B, Av. de l'Hôtel-de-Ville, Le Plateau-Mont-Royal (Montréal)
1
1
1900
3993sq/ft

2 399 000$

42

Montréal

Quintuplex

1223, Rue des Carrières, Rosemont/La Petite-Patrie (Montréal)
1
1
1950
5320sq/ft

1 999 000$

32

Montréal

Two or more storey

1221Z, Rue des Carrières, Rosemont/La Petite-Patrie (Montréal)
2
3
1950
1573sq/ft

999 000$

36

Montréal

Plex

175A - 175B, Rue Napoléon, Le Plateau-Mont-Royal (Montréal)
2
1
1875
5118sq/ft

2 999 000$

Raise in key interest rate - Key informations

In our current context of pandemic and real estate market overheating, the threat of an increase in the key interest rate has been hovering for several months. Recently, the Bank of Canada raised the rate to 0.50%. This interest rate had not increased since the beginning of the COVID-19 pandemic in 2020.

Many questions and uncertainties remain about the impact of this rate fluctuation on the real estate market. To shed some light on the key interest rate and its influence on the real estate market, we spoke with Mahsa Mirzaie, Director of Mortgage Development at National Bank. 

Why does the Bank of Canada increase the key interest rate?

The objective of raising the key interest rate is to curb inflation around the world by reducing borrowing costs and encouraging savings. It is important to understand that at the beginning of the pandemic, the key interest rate was reduced three times to reach 0.25% to stimulate the economy. This rate, reached in March 2020, had never been so low, allowing the economy to recover.

Changement des taux à un jour de la Banque du Canada depuis 2010

Source : la Banque du Canada

How does the increase in the Key Rate affect mortgage interest rates?

When central banks raise their interest rates, the base rate of chartered banks (such as the National Bank of Canada, the Bank of Montreal, the Royal Bank of Canada) also increases, because it costs them more to finance themselves. The consequence is that several bank products with interest rates increase, such as mortgage interest rates, rates on credit margins, and other products with variable interest.

How does this affect current and future bank customers?

Existing customers

Customers that already have a fixed-rate mortgage, the interest rate will not be affected by this increase until their mortgage is renewed. The rate is set for the duration of the contract. When the contract is renewed, the new rates take effect. 

Customers that already have their mortgage with a variable interest rate will have to expect a rise as fast as the following month.

Future customers

Now, for customers who are currently looking for a mortgage, it is recommended to do a pre-approval with rate guarantee as soon as possible. Indeed, despite the fact that there has been a first increase in the key interest rate, according to the forecasts, future increases in interest rates are to be expected. We must then protect ourselves against them.

What is the impact of the increase in the key interest rate on the real estate market?

According to Yanick E. Sarrazin, the team’s chief real estate broker, although the real estate market has been very interesting for several years, it should not be forgotten that the evolution of this market depends on the relationship between supply and demand. A disparity therefore creates an upward or downward impact on property prices. 

Higher rates are expected to result in fewer buyers, which could reduce or stagnate future increases in property values. Some may think that this could lower the price of houses in Montreal. Mr. Sarrazin’s opinion differs since the average prices of properties in Montreal have not witnessed a loss in value in the past decades. Indeed, Mahsa Mirzaie, adds that it would be unlikely unless we find exorbitant rates at 5-6% as those before the year 2000.

What would be your advice for today’s buyers?

Historically speaking, real estate remains a good investment in the long term considering that properties increase in value over time.

However, many are wondering whether it is better to acquire a property right now or to wait, given the situation. From an investment point of view, it would be wiser not to wait to purchase a property given that the prices of properties have always seen an increase, strong or weak.

That being said, a mortgage broker understands that each individual’s situation varies. The financial stability of the buyer is a key element, hence the importance of a mortgage broker assessing one’s financial situation. This analysis can then provide an overall picture of the individual’s income, borrowing capacity and repayment capacity.

Once the financial analysis is done, it is also important to target the objective of the purchase, as the strategy to adopt will be different. For example, is the purchase for a primary residence? There will then be no tax impact on the sale unlike a purchase of a rental property, in this case, the strategy of cash damming will be interesting.

Since it can take a long time to acquire the desired property, it is recommended to do a pre-approval with guaranteed rates with the longest period possible. This then ensures no fluctuation of the rate for a fixed period.

Depending on the objectives of your real estate purchase, there are multiple strategies and can be complex, hence the importance of getting in touch with a mortgage broker who will advise you and guide you towards the right direction.

This article was written in partnership with Mahsa Mirzaie, mortgage development manager at National Bank.

Mahsa Mirzaie - Prêts hypothécaires - Immobilier

Consult other real estate news

Any questions? Contact one of our real estate brokers.

Why buy with a real estate broker - Key information

Why deal with a broker for a real estate purchase

The purchase of a property is without a doubt a very important step in the life of many people. Visits, offers, counter-offers, negotiations, legal paperwork, etc., the purchase of a house is a complex process that requires a lot of time, research and energy.

Indeed, finding the property that will make your heart beat faster while meeting the criteria, desires and needs you have set for yourself can be a considerable task. Working with an experienced real estate broker who is an expert in the areas you are considering for the purchase of your property can be a smart move that will not only reduce your mental load, but also put part of your real estate project in the hands of a seasoned expert and enthusiast.

A well regulated profession

It should also be noted that real estate brokers in Québec hold an official permit issued by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), which provides them with guaranteed expertise, in addition to requiring them to abide by strict rules governing their profession and protecting you as a consumer.

Project of law 5

Finally, with Bill 5, amending the Real Estate Brokerage Act, a broker can no longer represent both the seller and the buyer. This double representation could indeed lead to certain problems, notably major conflicts of interest. With the amendment of this law, the buyer benefits from greater protection and guaranteed loyalty on the part of his broker as well as a better defence of his own interests.

But in concrete terms, why do business with a real estate broker for a purchase?

1.   As an expert in the real estate market, working with a real estate broker will allow you to buy the property you are looking for at a fair price, according to the state of the market, thanks to the comparative analysis of the property carried out beforehand by the broker.

2.  A real estate broker working with a team of industry experts will also be able to assist and guide you in completing the various legal documents required to purchase (and sell) a property, including the Promise to Purchase, the Seller’s Declaration and the Notarial Act.

3.  In the same vein, your real estate broker will be able to accompany you and advise you with the professionals you will meet along the way, notably the mortgage broker, the inspector and the notary, in addition to having a negotiating strength that will set you apart from other potential buyers.

4.  Your real estate broker’s references and contacts, regarding the professionals mentioned above, could also be useful to you. Indeed, depending on the sector you are looking for, your broker will be able to recommend experts whose specific knowledge will make the difference (especially regarding the inspection of the property) in the buying process.

Finally, doing business with a real estate broker is free for the seller since the fees paid for his services are assumed by the seller of the residence the buyer is purchasing (to pay for the services of the listing broker and the collaborating broker. The amount of the commission is included in the Promise to Purchase, which is signed by both parties to the transaction).

Are you looking for your dream property? You wish to sell your home to start a new chapter in your life? Do not hesitate to contact one of our real estate brokers, it will be our pleasure to accompany you and guide you through the different steps of your process!

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Demystifying the goodwill in Quebec - Key informations

What is a goodwill?

A goodwill is a legal concept present in various countries such as Belgium or France. But this commercial notion is quite ambiguous and can lead to misunderstandings. In Quebec, what exactly is a goodwill?

A goodwill

In Quebec, a goodwill refers to an intangible asset, which means that it is not tangible. A goodwill is characterized by the combination of intangible and tangible elements that the trader owns in order to operate a commercial or industrial activity. These elements then make it possible to attract customers and retain them. A goodwill will be different depending on the commercial activity. However, the walls of the building, the receivables and the debts are not part of the goodwill. The legal regime will then be different when the business is sold.

Tangible elements

Tangible elements are elements that have a material existence. They refer to fittings, equipment and stocks that are related to the activity of the business. These are also the goods intended for sale. For example, if the business is a restaurant, the physical items could be chairs, tables, kitchen equipment etc.

Intangible elements

Intangible elements are elements that have no material existence. In a business, they can designate the trade name or trade sign, the various operating licenses and its reputation. However, it is the clientele and the right to lease that have the greatest value in a goodwill. 

Fonds de commerce restaurant Montréal

Its main components

The clientele

When buying a goodwill, customers are very important. Indeed, a goodwill could not exist without its customers. A clientele refers to all of the people who do business with the business. It must be autonomous and suitable for commerce. If the clientele evolves, the goodwill will also evolve. If the customer base is not exploited, the business will decline.

If too big changes take place, the clientele of the goodwill will change and this will reveal the birth of a new goodwill. But a cessation of activities in the business would make the clientele disappear and then the goodwill itself. The operation or non-operation of the business therefore determines the existence of the goodwill.

Traffic

Traffic is also an important component of a goodwill. Traffic refers to a transient clientele or a local clientele of the fund. Despite the fact that traffic does not refer to a goodwill’s own clientele, it is still important. Indeed, the higher the turnover of the business, the more traffic there is.

The right to lease

The right to lease refers to the right of the owner of the goodwill to carry out his commercial activities within the walls of the business, that is to say to become a tenant of the walls, until the termination of the lease. The acquirer of the business will then benefit from this right to the lease.

Sale of a goodwill

When selling the goodwill, you have to define the type of business. Is it a corporation or a business?

If it’s a corporation, you can buy the business and the shares go to the transferor.

If it’s a business, then you have to buy the entire business.

A broken down promise to purchase

After determining the type of business, all the elements of the goodwill must be broken down, that is to say to divide the expenses and the costs, on the promise to purchase. This is particularly important given the different activities that are possible in a goodwill. For example, when a buyer buys a clothing store, he buys his inventory. In this case, there are established prices for the goods or inventory. However, these prices will be paid separately, as the inventory is not stable over time and is constantly changing depending on the seasons.

A negociated agreement

Following the breakdown of the offer to purchase, a price agreement is negotiated between the seller and the buyer. Different steps must be taken such as the transfer tax, being the payment related to the change of ownership or the deed of assignment.

Before the signing of the deed of assignment, the seller must be responsible for having paid all his debts, works and various obligations related to the goodwill. After the signing of the deed of sale, the buyer is the new owner and will be responsible for all future expenses related to his commercial activity.

Purchase of a goodwill

Sustainability

When buying a goodwill, the majority of sellers want buyers to sign a new lease. Thus, sellers will not be held responsible for buyers. On average, a business requires a lot of time and money (in renovation, decoration, etc.). A buyer therefore wants to operate his goodwill for a period of at least five years.

The staff

As mentioned earlier, buying a goodwill means acquiring its clientele, but also having access to the staff and suppliers. It is the buyer’s choice whether to keep existing staff or not. However, it is important to remember that the loyal clientele of a business is often attached to its staff. The complete dismissal of staff or too drastic changes in the trade could then make the clientele insecure and even make it disappear. You must therefore make wise choices, because why change a winning formula!

Contact one of our commercial real estate brokers to help you with your sale or purchase of a goodwill.

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Is it possible to withdraw from an offer to purchase following an inspection?

After various searches with your real estate broker, you finally made the decision to buy a property. You then make an offer to purchase to the seller and it is accepted. After reading and certifying the seller’s declaration form, it is now time for the inspection of the property. However, following the inspection, you decide to withdraw from the offer to purchase. Is it possible? Here are some important tips and information you need to know.

offre d'achat signée

Declarations by the seller of the immovable form

The transparency of the seller

The Seller’s Declaration Form of the Immovable (commonly referred to as ‘’SD’’) is a mandatory document that must be completed by the vendor when selling his property. It is the seller’s duty to be transparent in his statement. This form of approximately six pages describes the history and details of the property, from past renovations, insect infestations to water damages. The declaration has to be read carefully by the buyer, who has to take note of the various statements made. The ‘’SD’’ is then signed and appended to the Promise to purchase.

Once the Promise to purchase is accepted, a time limit is set to fulfill the terms of the offer to purchase including the inspection. This time limit is variable and is approximately seven to 15 days.

Prepurchase Inspection

During and after the inspection

The real estate broker plays an important role in the inspection of the property. Indeed, whether it is with the buyer or the seller, the broker will participate in the inspection and make observations about the property. For his part, the building inspector will provide an inspection report and give various comments to the buyer.

Although sometimes neglected in order to speed up the sales process, the inspection of a property is a crucial step. During the inspection, the broker can detect disturbing elements of the property or highlight major issues that were not listed in the seller’s declaration form.

Completion or non-completion of the inspection condition

Following the inspection, within a 24 to 48 hours delay, the report is sent to the broker. Once this report is received and analysed, the buyer can declare himself satisfied and no change will be made to the promise to purchase. The transaction is ongoing.

If the buyer is not satisfied, there are options available to him. However, the promise to purchase is a contract that binds the two parties involved. The reasons for modifying an offer must be valid. So there has to be elements that came out of the inspection report that are problematic, which means that they represent a risk or additional costs associated with the property. These so-called “problems” may also not have been mentioned in the seller’s declaration form. At this point,the buyer may then negotiate the price or withdraw from the offer to purchase.

Following this decision, a notice and a copy of the inspection report must be sent to the seller in order to formalize the cancellation of the promise to purchase.

Cancellation terms of the offer

The new laws require valid reasons to cancel a purchase offer after the inspection. These reasons now include a major issue leading to significant costs in proportion to the selling price. It must be a serious, non-cumulative problem, and only revealed by the inspection.

Valid reasons for modification

The reasons for modifying an offer must be directly related to problematic elements identified in the inspection report. These elements must represent a risk or additional expenses associated with the property and must not have been mentioned in the SD form.

Renegotiation and withdrawal of the offer

Renegotiation is no longer an automatic tool after the inspection. It is possible only if the seller is willing, and the buyer must have a genuine right to withdraw. The new laws aim to ensure that the seller agrees to negotiate rather than lose the buyer.

In this evolving legislative context, being accompanied by a real estate broker remains essential to navigate through these new requirements and ensure a compliant purchase or sale. Do not hesitate to seek the expertise of our real estate brokers at every step of the process.

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