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 before buying or buying before selling? - Key Information

Should I sell my property before buying one or buy before selling my current property? Many people ask this question because of uncertainties in the process of selling and purchasing real estate.

Our real estate brokers, experts in Montreal neighbourhoods, believe that selling before buying is the best option.  That said, each case is different and we will try to give you a picture of the advantages and disadvantages of the two scenarios in order to help you.

Buying before selling

Fear of the unknown leads some individuals to opt for this sequence when they are looking for a new property. It is more precisely the fear of not finding the property that meets the criteria of purchase after receiving an interesting offer on their real estate that is at the heart of their concerns. That said, buying before the sale can be an attractive option in the case of a cash purchase.

Advantage of buying before selling

• More time: Aside from your personal constraints, you have all the time you need to do your real estate searches.

Disadvantages of buying before selling

•  A purchase offer conditional on the sale: In the case where the buyer must sell to recover the proceeds of the sale in order to finance a new purchase of a property, when he finds the desired property, the latter must submit a purchase offer conditional on the sale of his property. Otherwise, there is a significant financial risk or a much higher purchase cost. Until you have an unconditional offer to purchase your property, there will be uncertainty about your purchasing power, including how much you can spend on your down payment.

• Additional costs incurred by a bridge loan: If you need the proceeds from the sale of your property for your purchase, your bank or lender can offer you the option of a bridge loan to acquire the desired property. However, it will cost several thousand dollars to cover the administrative costs, as well as the interest costs associated with granting the loan.

• A less competitive and more stressful offer to purchase: Writing an offer to purchase that includes the condition of sale makes your promise to purchase less attractive to the seller. In addition, once your offer to purchase is accepted, it will include a 72-hour clause. Thus, as long as the terms of your sale are not fulfilled, the 72-hour clause indicates that the seller can find another buyer. In general, the buyer’s deadline for fulfilment of the conditions is 30 to 90 days. This number may vary depending on the agreement between the seller and the buyer. If the seller receives an even more attractive offer from another buyer and the conditions are lifted before yours, the seller will have 72 hours to send you a notice, being the first buyer. You should then lift all your conditions, including the sale of your property and provide proof of the financing of the purchase. In short, the addition of this condition can raise many concerns and lead you to make concessions that you would not normally make.

• The risk of not selling: An additional disadvantage to buying before selling your property is not being able to sell your property once your buying process has begun. For example, you accepted an offer to purchase your property and during the inspection a problem affecting the building was discovered. Whether this problem is real or imagined, major or insignificant, the buyer can cancel his offer which will have catastrophic consequences on your own buying process, not to mention the loss of value of your property.

Chien qui déménage -courtiers immobiliers Montréal

Selling before buying

This sequence remains the most financially secure option as it involves selling your property and using the proceeds of the sale to acquire a new property.

Advantages of selling before buying

• A reduction in financial risks: In most cases, the sale of a property helps finance the purchase of a new property. Selling your property allows you to recover the value of the property and then have a better knowledge of the actual budget allocated to the future purchase including the amount of your down payment. So it’s a safer option. In addition, the expenses are only related to one property, one mortgage, and you will not have the additional costs of a bridge loan.

• Better negotiating power: When you sell before you buy, you will have fewer constraints since you have no commitment to buy real estate. In this sense, since you will not feel a sense of urgency, you will have less pressure to sell and will therefore be less inclined to accept an offer that does not meet your expectations, which will result in a higher sales price. You’ll have more bargaining power.

• A more competitive offer to purchase: As mentioned, with the sale price of your property, you have a better idea of the amount you will pay on the new property. You will not have to submit an offer conditional on the sale of your property. You can then make offers to purchase with only the basic conditions (inspection, financing and document review).

Disadvantage of selling before buying

• The impossibility of finding the desired property: The main drawback of the pre-purchase sale that worries some homeowners is not being able to find a property that fits their needs once their current home is sold. This could result in a temporary rental while finding the ideal property. That said, with the assistance of an expert real estate broker in your neighbourhoods for the sale of a property and the purchase of a new one, this scenario can be avoided.

Any hesitation?

Selling and/or buying your property is an important event that can generate considerable stress and where constraints and uncertainties can occur. In order to simplify this process, to obtain better purchasing power and especially to reduce financial risks, it is generally recommended to sell your property before buying a new one.

In addition, in our opinion, the key to success is to accept an offer to purchase in which the deadline for signing the act of sale is more than 90 days, while being accompanied by a real estate broker who has a great deal of expertise in the acquisition of real estate.

Still hesitating about the right decision? Contact one of our real estate brokers who will enlighten you on the subject and according to your needs.

Summary

There are many questions about whether it is better to sell your property before buying a new one or whether it is better to buy before selling. According to our team of experts, it is always preferable to sell your property before making a new acquisition of real estate. The benefits are many: you reduce financial risks, you will have more time to make an informed decision about the sale and purchase of a new property. When you make an offer to purchase, you will have fewer conditions, which can then attract more sellers. Selling before purchasing a new property helps alleviate worries about this important event of a lifetime. As for the purchase before the sale, this option is interesting only in the case of a cash purchase. If you have additional questions, do not hesitate to contact a YE/SARRAZIN real estate broker !

Questions about selling before buying or buying before selling? Contact one of our real estate brokers to find out more

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End of dual agency : bill 5 - Key Information

This article was updated on August 24, 2022. 

Bill 5

Given the current overheated real estate environment and in the interest of better protecting buyers in a real estate transaction in Quebec, Bill 5 was passed by the National Assembly. This amendment to the Real Estate Brokerage Act was adopted on June 10, 2022. Bill 5 involves various tax measures, but also measures related to the real estate market. It prohibits, among other things, the dual agency of a real estate broker with a buyer and a seller for a residential immovable, as well as the verbal brokerage contract. These measures would then avoid a potential conflict of interest.

With the arrival of this new law, many questions arise. What exactly does this law consist of? What are the benefits for buyers? Does it have any exceptions regarding its application? What are the advantages of the brokerage purchase contract for buyers? What is the opinion of our team’s real estate brokers regarding this important change?

Implications of the prohibition of dual agency

As mentioned previously, Bill 5 prohibits a real estate broker from representing a buyer and a seller at the same time in a transaction involving a residential immovable property. A real estate broker is licensed by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). The broker works with his client, must protect his interests and ensure loyalty. Respect for confidential customer information is essential. In a case of dual agency, these obligations cannot always be fulfilled and can give rise to major conflicts of interest, hence the importance of the establishment of this law.

The real estate broker must then represent only one part of the transaction (the buyer/the seller or the tenant/the lessor), thus ensuring a fairer treatment vis-à-vis the buyer.

The prohibition of dual agency is also combined with the prohibition of the verbal purchase brokerage contract. A written purchase brokerage contract must then be established between the buyer and the real estate broker in order to formalize the transaction.

If a case of dual agency occurs, i.e. a real estate broker is bound by a sale brokerage contract and a purchase brokerage contract, he must then notify the buyer in writing as to the termination of the purchase contract. As soon as this writing is sent, the termination of the purchase contract takes effect. The broker will then have to recommend a new real estate broker to this buying client. However, the buying client can choose not to be represented by anyone and make the decision they desire for the rest of the real estate transaction. If this is the case, the real estate broker must grant him fair treatment.

The concept of fair treatment is fundamental here. The real estate broker must inform the unrepresented buyer with objectivity. Indeed, the broker must demonstrate the accuracy of the information transmitted and indicate to the buyer any adverse elements concerning the desired property. However, the representation of the buyer and the defense of his interests are not possible without the signature of the purchase contract. In this case, the real estate broker will work in collaboration with the broker-seller. 

Dual agency exceptions

It should be noted that the OACIQ will establish certain exceptions with regard to compliance with the law of double agency. For example, for certain regions of Quebec that would be underserved, real estate brokers in that region would be authorized to represent buyers and sellers. Additional exceptions are expected in the coming months.

New real estate broker roles in a transaction

Broker-Seller: The broker-seller is the real estate broker who is bound by a Brokerage Sale Contract (BSC) with a seller. Since the broker has a signed contract, he must represent his client’s interests. 

Broker-Buyer: The broker-buyer is the real estate broker who is bound by a Brokerage Purchase Contract with a buyer (BPC). He can therefore represent the buyer and must defend his interests.

Broker-Collaborator: The broker-collaborator is the real estate broker who accompanies the buyer in the transaction, but is not bound by a brokerage purchase contract (BPC). As mentioned above, the broker-collaborator must work in collaboration with the broker-seller and cannot represent the buyer and his interests.

Brokerage purchase contract: what are the benefits for buyers?

Among the new obligations of this law, the brokerage purchase contract became mandatory as of June 10, 2022. In order to formalize the agreement between the buyer and the broker, the purchase contract must be signed by both parties. Signing this type of brokerage contract has many advantages for buyers:

  • Representation: the buyer can be represented by the real estate broker and the latter can defend his interests.
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  • Personalized service: the buyer benefits from the custom search carried out by the broker (such as the creation of a portal of properties to visit). The buyer will also be better protected with regard to his personal information and interests.
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  • Access to comparables: the buyer has access to market comparables obtained by the real estate broker’s expertise and the tools at his disposal.
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  • Advice: The buyer receives advice and recommendations based on their needs and criteria throughout the purchase process. This advice will allow him to have a better knowledge of the situation (for example: are we in a situation of multiple offers) and in the real estate market more generally. 
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  • Negotiation: the buyer is represented by his broker during the negotiation. The real estate broker’s negotiation skills will allow the buyer to acquire the desired property at a fair price and to stand out in multiple offers. 
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  • Writing the promise to purchase: the buyer is advised by the broker on the conditions and clauses to be added to the promise to purchase in order to be further protected and distinguished. 

Dual agency exceptions

The OACIQ has established certain exceptions regarding compliance with the dual agency law.

-For certain areas of Quebec that would be underserved, real estate brokers in that area would be allowed to represent buyers and sellers. 

-A seller and a buyer can be represented by two brokers from the same real estate agency.

-For residential buildings with more than 5 units and commercial buildings, the brokerage purchase contract is not mandatory. The end of dual agency does not apply here. 

Summary

Bill 5 was adopted by the National Assembly and involves changes to the law on real estate brokerage. These changes have been in effect since June 10, 2022. Among other measures, this new law prohibits the dual agency of a real estate broker with a buyer and a seller for a residential building. It also indicates that in order to formalize a transaction, a written brokerage purchase contract must be established between the two parties. Certain exceptions to this dual agency will be granted, such as in small regions of Quebec where there is a deficit of real estate brokers. It also states that in order to formalize a transaction, a written brokerage purchase contract must be established between the two parties. With the mandatory purchase brokerage contract, this reduces potential conflicts of interest that can arise when a real estate broker represents a buyer at the same time as a seller. In addition, this provides additional protection to the buyer, strengthens the relationship of trust and loyalty between the two parties. 

*The use of the pronoun “He” was used to lighten up the text.

Questions? Contact one of our real estate brokers to enlighten you on the subject

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

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Multiple offers : 7 strategies to stand out from the competition - Important points

In a seller’s market, the number of properties for sale is not sufficient to meet the demand. It is not uncommon for more than one buyer to be interested in the same property, and this is even more the case in the more desirable areas of the city of Montreal. As a buyer, you can sometimes find yourself in a multiple offers situation and overbidding, which can seem tricky and even discouraging. However, there are several strategies to consider in this situation to increase your chances of winning. 

Here are 7 that can help you :

Do your research

Define what criteria are really important to you when you begin your search for a new property. If your criteria are not well defined, you may not have enough time to evaluate the neighborhood and the characteristics of the properties (neighborhood schools, number of rooms needed, maximum budget, etc.). By having clear criteria, you will reduce stress and focus on the opportunities that really meet your needs.

Work with an experienced real estate broker

In a multiple offer situation, the selling price is usually higher than the asking price. A real estate broker who knows the Montreal market well will be able to advise you on the price at which a property should sell and help you set the right price for your offer.

His knowledge of neighborhoods, recent transactions and the legal aspects of a real estate transaction will give you access to all the information you need to make informed decisions. In addition, he will be able to put his network of trusted professionals (appraisers, mortgage brokers, notaries, etc.) at your disposal so that you will be ready when the time comes to fulfill the conditions of your promise to purchase.

Get a mortgage pre-approval and proof of funds

It is important to know that in a multiple offer situation, you will not be able to know the conditions offered by the other buyers, including the price. Although the seller’s broker must advise you of the number of offers, no other element can be mentioned.

In order to demonstrate your intentions and commitment to the seller, it is strongly recommended that you obtain a mortgage pre-approval from your financial institution in addition to your down payment. This letter will demonstrate to the seller that you are not financially locked in. You can also obtain a proof of funds which will further reassure the seller.

Find out what conditions are important to the seller before you make an offer

The price is not the only element considered at the time of a purchase. In fact, other clauses such as the occupancy date play a major role in the sellers’ decision. If you are flexible with the date of signing or taking possession, or with inclusions/exclusions, talk to your broker or the seller’s broker (if you are buying alone). They will be able to give you more details on the sellers’ expectations.

The more your terms accommodate the seller’s preferences, the more likely you are to get their attention. There is also the option of making an offer not conditional on an inspection. Although this option is more risky, it is best to discuss it with your real estate broker first.

If the seller wants 48 or 72 hours, do not try the option of reducing the time to 24 hours. This may have a negative effect, rushing the seller who is receiving multiple offers.

Introduce yourself and your projects

Sellers are often emotionally attached to their property, they often want to know the next people who will live there and their plans. By taking the time to write a presentation letter, prepare a video or a photo collage, you increase your chances of showing that you are the ideal buyer. Don’t forget to present your family, your projects or your background, they might recognize themselves in you!

Opt for short deadlines for the completion of requirements

It is suggested to set deadlines as short as possible, while remaining realistic. A serious and ready buyer should have all the information ready in case of an accepted offer to start the process. Consult your inspector in advance to find out the minimum notice period he needs, or your bank or mortgage broker for financial approval deadlines.

Consider upgrading your offer or accepting the 2nd rank

If you find the property of your dreams or are looking for a home in an area where listings are scarce, discuss with your broker the option of increasing your offer. Offering your highest price may get you the property you want. If your offer is not accepted, and you have a strong interest in the property, you can put in a second offer. This option ensures that your offer will be accepted if the initial offer falls through.

Some additional tips from our real estate brokers

The Montreal market is as active as ever and properties are selling at a record pace. It is therefore strongly suggested to act quickly. Don’t wait for the visit to see the street or the area of the property. Come by during the day and evening to see the façade and exterior, and if there is an alley, visit it. Respect the seller’s requests regarding the deadline for submitting offers.

If you choose a real estate broker, take the time to check out the reviews of buyers and sellers on Google, to see what they thought of the service offered. After all, it’s people like you who will give you a real idea of what to expect.

Happy searching, and especially happy transactions!

Do you have any questions? Contact one of our real estate brokers

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The Promise to Purchase - Key Information

What constitutes a Promise to Purchase?

The Promise to Purchase is addressed by the potential buyer of the real estate, to the seller of this one, following a conclusive visit which gives him desire to make the acquisition.

  • The Promise to Purchase is one of the important documents in a real estate transaction that serves to protect the buyer. In other words, the Promise to Purchase is a pre-contract since it does not constitute the official contract between the seller and the buyer. In fact, the deed of sale is the official and irrevocable document binding the two parties in the real estate transaction.

However, the Promise to Purchase is nonetheless of great importance since it constitutes a formal commitment between the seller and the buyer. In fact, the seller undertakes to write down everything he knows about his property, while the buyer ensures, for example, that he has the financial means to purchase the property.

It is also in this document that you will indicate to the seller that you are inclined to purchase their property, as well as the conditions under which you wish to do so.

The different parts of a Promise to Purchase

The clearer and more detailed the Promise to Purchase, the less open to interpretation. Some of the information it should contain includes:

For information purposes, we used a Promise to Purchase for a mainly residential building of less than 5 units excluding condominiums.

1. Identification of the parties

In a residential property transaction, both parties (buyers and sellers) must know their identities. This is the first section of the Promise to Purchase. On the left is the identification section for buyers and on the right for sellers.

Identification des parties - Promesse d'achat immobilière

2. Purpose of the Promise to Purchase

In this section, we find the identity of the real estate broker representing the buyer, as well as his license number and the real estate agency he works for, if applicable.

Promesse d'achat - Courtier immobilier Montréal

3. Brief description of the building

A description of the property to be purchased, including the complete address, cadastral designation, dimensions and area.

Promesse d'achat 3

4. Price and deposit

This is the section where you will find the price conditions. This is where you indicate the price you think is fair to purchase the property you want. Your offer can be lower, equal or higher than the seller’s asking price. You must also indicate the amount of the deposit if applicable.

Prix et acompte - Promesse d'achat immobilière

5. Method of payment

You must now enter the details of your payment method. If you left a down payment in section 4.3, you will need to re-enter it in section 5.1.

The total of the amount indicated in sections 5.1 (if applicable) and 5.2 represents your down payment.

6. New mortgage loan

If you are proceeding with a mortgage loan, you must indicate the details in this section: the amount, the conditions and the deadline for obtaining your financing.

We invite you to understand clause 6.3.

Promesse d'achat 6 - Courtier immobilier Montréal
Promesse d'achat 6.0 - Courtier immobilier Montréal

7. Declarations and obligations of the buyer

The seventh part of the Promise to Purchase deals with the declaration and obligations of the buyer. Also, if the buyer is related to the agency or broker representing him, this is where it should be reported.

Promesse d'achat 7

8. Inspection by a person designated by the buyer

It is in clause 8 that you must indicate if you wish to have the building or property in question inspected. Be aware that there is a possibility to cancel an offer to purchase following the inspection.

Promesse d'achat 8 - Courtier immobilier montreal

9. Buyer's review of documents

When you are accompanied by a real estate broker, he/she can send you all the documents related to the sale of the property available on the Centris platform. When you write your promise to purchase, if all the documents you wanted to see were available online and you are satisfied, there is no need to fill out this clause.

Promesse d'achat 9 - Courtier immobilier Montréal
Promesse d'achat 9.0 - Courtier immobilier Montréal

10. Declarations and obligations of the seller

The tenth section deals with the obligations of the seller to the buyer in the transaction.

11. Declarations and obligations common to the buyer and seller

The eleventh section refers to obligations that are common to both buyers and sellers, particularly in relation to the date of the deed, including the day the buyer will take ownership of the property, the date of occupancy of the premises, apportionments, payments and inclusions and exclusions of property. 

Do not hesitate to ask your real estate broker any questions you may have before signing the Promise to Purchase. Make sure that all the conditions are included, as well as the possession and notary dates.

Promesse d'achat 11 - Courtier immobilier montreal
Promesse d'achat 11.0 - Courtier immobilier montreal

12. Other statements and conditions

This is where you can indicate any general conditions that you would like to add to your Promise to Purchase.

Common examples would be, a notice of non-renewal of a tenant’s lease while the property is rented, repair of a non-functional included item, etc.

13. Annexes

When there are schedules to be attached to the promise to purchase, you must indicate them here.

For example, when you are financing the purchase of your property, you must complete the financing annex.

Promesse d'achat 13 - Courtier immobilier montreal

14. Conditions of acceptance

This is where you indicate to the seller the time frame you are allowing him to respond to your offer.

We invite you to respect the deadlines requested by the seller if necessary.

Promesse d'achat 14 - Courtier immobilier montreal

15. Interpretation

Promesse d'achat 15 - Courtier immobilier montreal

16.Signatures

When you have gone through your promise to purchase with your real estate broker, and you have included all your conditions, this is where you should sign!

You will also find a section for the seller’s response. He will indicate whether he accepts or refuses the promise to purchase.

Promesse d'achat 16 - Courtier immobilier montreal

What should the seller do after receiving the promises to purchase?

Once the Promise to Purchase is handed over to the seller, 3 options are available to him:

Accepted offer

Upon acceptance of your offer, you must fulfill the conditions set out in the Promise to Purchase in a timely manner. The most common conditions are to obtain the necessary financing and the inspection of the property by a recognized expert.

Refused offer

Even if your offer meets all of the seller’s conditions, the seller can refuse your Promise to Purchase. If you are interested in the property, there is nothing to stop you from proposing a new Promise to Purchase to the seller.

Counter proposal

Here, the seller refuses your offer, but may accept it under certain conditions. This could be a different price, or elements that he wants to exclude or modify. In turn, you can accept, refuse or respond with a counter-offer.

It is also in the Promise to Purchase that the acceptance period that you require from the seller in the event that he accepts your offer will appear. In some cases, the seller may ask for a deadline to be met.

Note that if your Promise to Purchase is accepted by the seller, it becomes an irrevocable contract that obliges you to purchase the property for which you have made an offer.

What if the seller receives multiple Promises to Purchase?

In the event that the seller receives multiple bids, the broker representing the buyers must present all bids received within a reasonable period of time following their receipt, without preference (e.g., the broker may not present the highest bids first, without considering their order of receipt).

The listing broker (i.e. the seller’s broker) must then present to his client all the Promises to Purchase received and advise him so that the latter can make the most judicious decision possible according to his needs and expectations and/or make a counter-proposal to one of the potential buyers.

Can I withdraw from a Promise to Purchase?

If all the conditions of your Promise to Purchae are met, your commitment to the seller is irrevocable. However, if one of the conditions mentioned in your Promise to Purchase cannot be fulfilled (for example, financing), this will render your document null and void.

Different types of Promises to Purchase

It is also important to note that there are different formats for the Promise to Purchase, depending on the type of property you wish to purchase. In fact, these differences in content are intended to accentuate the particularities of the types of housing that exist. It is therefore important that you ensure that your real estate broker sends you the right document when you wish to make an offer to purchase.

Do you have any questions? Contact one of our real estate brokers

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The real estate assistant : understanding the profesion - Key informations

The real estate broker has well known responsibilities and tasks. However, he or she can be accompanied and work closely with an assistant who has a central role in the real estate transaction, but whose tasks are often unknown. How is an assistant essential in a real estate team?

Administration & management

The Real Estate Broker’s Assistant will take care of various administrative and management tasks for the real estate brokers on the team. In fact, with the collaboration of the real estate broker, the assistant will assemble the various client files and ensure the conformity of the documents received during the real estate transaction process. This is an important step since the documents must be completed according to the real estate brokerage law. 

Updating client databases and preparing information for market analysis are also among the many tasks associated with the Broker Assistant job.

Transaction

The work of a Real Estate Broker’s Assistant also involves composing and preparing communications necessary for transactions, as well as managing calls and information requests from prospects and clients. The assistant may contact sellers and buyers to pass on the necessary information to the real estate broker. During the marketing of properties, the Real Estate Broker Assistant will work with the broker to ensure that the real estate transaction runs smoothly.

Formation

In order to become a Broker’s Assistant, it is recommended to have knowledge in real estate and to be passionate about this field. Training is also available to learn more about the lexicon of real estate in Quebec and the various Centris computer tools to know (Immocontact, Matrix, Prospect, Instanet Forms, Saisie), Ezmax and EZSign.

The organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) is the authority on real estate brokerage in Quebec. It is an important resource that has a lot of relevant information to know and can be very useful for the training of a broker’s assistant.

Organizational skills

As mentioned earlier, the real estate assistant plays a fundamental and important role in a real estate team. She must have a sharp sense of organization and outstanding customer service. The ability to manage numerous files at the same time, as well as a high level of professional rigor, must also be part of their skills.

The real estate broker’s assistant must therefore be in perfect synergy with the real estate broker, as she follows everything the broker undertakes at each step of the real estate transaction process. The broker’s assistant is therefore a fundamental pillar for the real estate brokers on the team.

Our Operations Team

The YE/SARRAZIN Team is fortunate to be surrounded by several real estate broker assistants who also hold their real estate broker’s licenses. Thus, our operations team has a wide range of real estate knowledge. This diversity of knowledge and skills brings a lot of rigor to the team’s files.

The Real Estate Broker Assistant has very specific tasks and follows the brokers in the administration and management of the various client files. Her tasks are numerous, ranging from updating client files, writing various communications to making calls with sellers or buyers during the real estate transaction. There is no specific training to become a broker’s assistant. However, a basic knowledge of real estate and a passion for this field are required. A strong sense of organization and unparalleled customer service are also qualities to have for a real estate broker’s assistant.

Meet our administrative team members

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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

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