Offer accepted: what are the next steps in the Quebec buying process?

Once your promise to purchase has been accepted in Quebec, the next steps involve fulfilling the suspensive conditions set out in the contract, such as the pre-purchase inspection, obtaining final mortgage approval, and reviewing legal documents, before finalizing the transaction with a notary. This period, often referred to as the fulfillment of conditions phase, is a critical window during which the buyer must perform due diligence to transform a conditional agreement into a firm and irrevocable sale.

The acceptance of an offer to purchase marks the end of the property search, but it simultaneously triggers a rigorous administrative and technical process governed by the Real Estate Brokerage Act. Whether you are purchasing a single-family home, a townhouse, or a condo, adhering to the deadlines specified in the promise to purchase is imperative to maintain the validity of the transaction. Each completed step brings the parties closer to the final deed of sale, requiring close coordination between the buyer, the seller, the real estate broker, the mortgage specialist, and the notary.

Fulfilling the Suspensive Conditions

The first phase following acceptance is dedicated to waiving the conditions. These clauses allow the buyer to verify fundamental aspects of the property before making a final commitment. It is essential to understand that failing to meet the deadlines for any of these conditions can lead to the cancellation of the promise to purchase or put the buyer in default.

#### The Pre-Purchase Inspection: An Essential Protective Step

The building inspection is typically the first condition to be met. It aims to provide a professional assessment of the physical state of the property. The buyer must hire a qualified inspector who will perform a visual examination of the visible and accessible components of the building. In Quebec, it is highly recommended to choose an inspector who carries professional liability insurance for errors and omissions and follows a standard of practice recognized by a professional association.

The inspection report identifies apparent defects and signs of potential hidden defects. If the report reveals significant factors likely to increase the buyer's expenses or decrease the property's value, the buyer may, according to the terms of the offer to purchase in Quebec, request repairs, a price reduction, or withdraw from the offer. For a deeper look at this topic, consult our complete guide to pre-purchase inspections in Quebec.

#### Final Mortgage Financing Approval

Although pre-approval is often obtained before starting the search, the lender must specifically approve the property involved in the transaction. This step often includes an appraisal by a professional mandated by the bank to confirm that the property's market value matches the price paid. The buyer must obtain a firm mortgage commitment letter within the timeframe prescribed in the contract. This step confirms the buyer's financial capacity to complete the purchase according to the terms established during the mortgage pre-approval process.

#### Reviewing Documents and Co-ownership Records

When purchasing a condo, special attention must be paid to reviewing the declaration of co-ownership and the syndicate's financial statements. Regarding Law 16, it is important to note that requirements for the maintenance log and contingency fund study are being phased in according to regulatory timelines. The buyer should request available documents, such as minutes of co-owners' meetings and the certificate of location, to ensure the unit's compliance and the co-ownership's financial health. Analyzing condo documents before buying is an indispensable due diligence step.

Transitioning to a Firm Sale

Once all conditions have been met to the buyer's satisfaction, they must provide a written notice of fulfillment of conditions to the seller. At this point, the sale becomes firm. The parties are then legally bound by an irrevocable bilateral contract.

It is also a good time to start planning for homeownership costs in Quebec, as the transition to ownership involves startup costs that should be budgeted for during this phase.

The Notary’s Intervention: The Legal Framework

The notary acts as a public officer and an impartial legal advisor. Their mandate is to ensure the legal security of the property transfer. The choice of notary typically belongs to the buyer, unless a specific exception was negotiated.

#### Title Examination and Search for Encumbrances

The notary performs a meticulous verification of the property title to ensure the seller is the rightful owner. They also check for the absence of encumbrances, such as unreleased mortgages or easements that could affect the full enjoyment of the property. This step includes analyzing the certificate of location to confirm that the building complies with municipal bylaws. For more details on this phase, see our information on the notary and taking possession.

#### The Statement of Adjustments

Before closing, the notary prepares the statement of adjustments. This document distributes property-related costs between the seller and the buyer pro-rated to the date of possession. Adjusted items typically include:

• Municipal and school taxes;
• Condo fees (for condos);
• Fuel reserves;
• Rental income, if applicable.

Signing the Deeds and Taking Possession

The culmination of the process occurs during the meeting with the notary for the signing of two fundamental documents: the mortgage deed and the deed of sale.

#### The Mortgage Deed and the Deed of Sale

The mortgage deed binds the buyer to their financial institution, while the deed of sale officializes the transfer of ownership. The notary ensures that funds are available and proceeds to clear the seller's old debts. Once the signatures are applied and the deeds are published in the Land Register, the buyer officially becomes the owner.

#### Receiving the Keys

Receiving the keys marks the physical possession of the property. It is common for the date of signing the deed of sale and the occupancy date to be different. These terms should have been clearly defined during the real estate negotiation. The buyer must ensure they have obtained valid home insurance before signing, as the mortgage lender systematically requires it.

Professional Support and Remuneration

Managing the steps following the acceptance of an offer requires specialized expertise to avoid costly mistakes. The real estate broker acts as a coordinator between the various parties to ensure that deadlines are met.

Regarding broker remuneration, it is important to specify that the terms are indicated in the brokerage contract, and any difference in the compensation sharing may result in an amount payable by the buyer or be financed within the offer. This structure ensures that the buyer's interests are represented by a dedicated professional throughout the buying process. Professional support allows for a smooth navigation through the administrative and legal complexities of the Quebec market.

In conclusion, transforming an accepted offer into a successful acquisition requires rigor and a clear understanding of contractual obligations. By following these steps methodically, from the initial inspection to the final signing at the notary's office, the buyer ensures their investment is protected and their real estate project is realized under the best possible conditions.