Buying or selling a property is a significant transaction, and the process varies across provinces in Canada. Two of the country’s most populous provinces, Quebec and Ontario, have distinct rules and customs when it comes to real estate transactions. Whether you’re a buyer or a seller, understanding these differences is crucial to ensuring a smooth process. Here’s what you need to know.
Language Requirements
One of the most notable differences between buying and selling property in Quebec and Ontario is the language requirement. Due to Quebec’s language laws, the offer to purchase must be written in French unless both parties explicitly want to have it in English. However, regardless of the language preference of both parties, the deed of sale must be written in French because it is officially published with the government.
In contrast, Ontario has no such language restrictions, and all legal documents, including the deed of sale, can be drafted in English without additional steps.
Role of Notaries vs. Lawyers
Another key difference is the role of legal professionals in the transaction. In Quebec, notaries handle real estate transactions instead of lawyers. The buyer selects the notary, and both parties use the same notary to finalize the transaction. This system creates a more centralized process, with the notary ensuring all legal and financial aspects of the sale are completed correctly. Additionally, it is common for both parties to be present in the same room when signing the deed of sale, making it a more personal experience.
In Ontario, each party typically hires their own real estate lawyer. The lawyers negotiate, handle the paperwork, and ensure that everything is in order for closing. The parties do not usually meet each other during the transaction. Instead, they each meet separately with their respective lawyer to sign the deed of sale, and documents are exchanged electronically or through their legal representatives.
Real Estate Agents vs. Real Estate Brokers
In Ontario, real estate professionals are referred to as Real Estate Agents, whereas in Quebec, they are called Real Estate Brokers. Additionally, in Quebec, their office is known as an Agency, which differs from Ontario’s common terminology of a Real Estate Brokerage.
Property Visits and Showings
The process of showing a property to potential buyers also differs between the two provinces. In Ontario, the buyer typically visits the property along with their real estate agent, often using a lockbox system for easy access. The seller’s agent and the sellers are never home.
In Quebec, the process varies. The seller’s realtor often opens the door for viewings, but in some cases—mostly for vacant properties—a lockbox may be used whereby the buyer and their realtor visit along. Occasionally, the seller themselves may be present to open the door, which can sometimes lead to awkward interactions between buyers and sellers.
Financing Conditions
In Quebec, to meet the financing condition, a formal mortgage approval letter or proof of cash funds (bank account statement or letter from the branch manager) must be provided to the seller, whereas in Ontario, this is not required. When applying for a mortgage, it is recommended to work with a Quebec lender who understands the procedures, as passing the deadline without providing a confirmation letter can cause a buyer to risk losing the property they made an offer on.
Deposits
Deposits are not required in Quebec, but they are recommended. However, the way Quebec offer documents are written, the deposit is refundable if the buyer does not close the sale, meaning the parties must hire lawyers to settle any potential damages. A special clause can be written to make the deposit non-refundable in order to protect the seller, but the mortgage commitment letter or proof of cash funds serves as an extra layer of protection for the seller.
In contrast, Ontario requires a deposit upon acceptance of an offer to demonstrate the buyer’s commitment to the transaction, and if the buyer fails to close the sale, they typically forfeit the deposit, as it serves as a sign of good faith and a contractual obligation.
Closing and Release of Funds
Closing day is a major milestone in any real estate transaction, but the timeline for receiving funds varies between the two provinces.
In Ontario, the seller typically receives their funds on the same day as closing. Once all legal documents are processed and registered, the funds are quickly released, allowing the seller to access their proceeds immediately.
In Quebec, the process takes a little longer. The notary must register the sale with the government before releasing funds to the seller, which generally takes about two business days. This delay is something sellers in Quebec should be prepared for when planning their next move.
Conclusion
Buying and selling real estate in Quebec and Ontario follow different processes, influenced by legal requirements, cultural norms, and administrative procedures. Whether it’s the language requirements, the role of notaries versus lawyers, or the timeline for receiving funds, these differences are important to understand for anyone looking to buy or sell property in either province. By being aware of these distinctions, buyers and sellers can navigate the process with confidence and avoid potential surprises along the way.
Team Angela Langtry specializes in relocations and ensures a seamless experience for out-of-province buyers and sellers. All team members are bilingual and have extensive knowledge of both Quebec and Ontario real estate markets, helping clients manage the complexities of each province’s unique processes.
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