Montreal Real Estate Blog » Real Estate Law

No Escrow in Montreal

Deya Bautista — Mon, 18 Jan 2010 11:22:32 +0000

We don’t hear about Escrows in Montreal. Believe it or not, my fellow Real Estaters (I think I just created a new word) from other provinces and countries.

The first time I heard, actually I didn’t hear it, I READ the word Escrow it was in a Condo Buyer’s Guide I picked up for my clients, and right next to the glossary description of escrow there was a note: Not applicable in Quebec.

Naturally I didn’t take interest on that word, up until I had to work with someone who demanded a escrow company and their contact number.

“A what? Escrow ??….Hmm, I think I’ve heard that before. Not sure where. Let me look into it.”

I’ve called two friends in the industry that have been in the business for about 20 years, and then I talked to my broker and there it was, the same answer: “A what? Never heard of it.”

Apparently, and up until today, there are no escrows companies in Montreal. Not it is used in the real estate transactions here. Maybe they are listed under a different name? If so, please enlighten us in the comments section.
So far, we haven’t have a demand for it. Good news for litigation lawyers.

PS: If you’re itching to know what escrow is, here is the wiki definition.

Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/

Money Laundering laws (FINTRAC) and Real Estate Developers

Deya Bautista — Tue, 16 Dec 2008 12:30:33 +0000

Back in June this year, all Real Estate Agents had to learn and be in compliance with the Anti-Terrorist and Money Laundering laws. The new regulations came into effect on June 23, 2008, targeting all professionals in the “money industry”, or those who deal with large cash transactions.

The rules applies to accountants, notaries, casinos, financial institutions, life insurance companies, dealers of precious stones and metals, securities dealers, and real estate professionals.

Real Estate developers were off the hook, up until next year. Effective february 20, 2009, all Real Estate Developers have an obligation to comply with the provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

More information:

Real Estate Developers And Money Laundering Law – What You Need To Know [Ottawa Business Journal]
Agents: New Rules for Compliance with FINTRAC [Ontario Real Estate Source]
To know more of the rules and regulations, visit FINTRAC’s website.

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Renting in Québec: La Régie du logement

Deya Bautista — Mon, 14 Apr 2008 11:00:50 +0000

What is the Régie du logement ?

Translated literally, and in the vernacular, La Régie du logement du Québec is the Quebec Rental Board. Here is a little definition excerpt to illustrate what the significance of it is:

“The Régie du logement is a specialized tribunal that has competence in residential lease matters. Its mission consists in deciding the applications that have been submitted within the framework of simple rules of procedure that respect natural justice; in informing the citizens on their rights and obligations related to the lease so as to avoid that conflicts occur due to the ignorance of the law; in promoting conciliation between landlords and tenants.

The Régie also keeps a watch, in certain circumstances, on the conservation of the housing stock and, in those cases, makes sure that the rights of the tenants are protected.”

The Régie’s laws and regulations cover all principal/permanent residential rental premises, including; the lease of a room, Mobile home placed on a chassis and land intended for the installation of a mobile home. However, the legislation does not apply to the following:

the lease of a dwelling as a vacation resort;
the lease of a dwelling where more than 1/3 of the total floor area is used for non-residential purposes;
the lease of a room in a health or social services institution (except pursuant to Article 1974 of the civil code of Quebec);
the lease of a room in a hotel establishment; or
The lease of a room situated in the principal residence of the landlord if not more than two rooms are rented or offered for rent, and if the room has neither a separate entrance from the outside nor sanitary facilities separate from those used by the landlord.

Rental Periods: How long can you rent for?

The rental periods are very flexible, since all types of terms are allowed: weekly, monthly, and annual. Also, you can have leases for no fixed duration.

Do you need to sign a Lease?

Not necessarily. The law does not require a written lease . But if you decide to write one, you must use the appropriate form from the Régie du logement for any new residential lease (room, apartment, condo, house, or land intended for the installation of a mobile home).

These forms are also mandatory for low-rental housing and for the lease of a dwelling with an educational institution by an enrolled student.

In the case of verbal lease, the landlord must give the tenant a form entitled “Mandatory Writing” within 10 days of the agreement. You can buy this form at the offices of the Régie du logement- visit their Website for more info.

For any questions regarding la Regie, please contact them directly: Tél.: 514-873-2245

How to repossess your income property

Deya Bautista — Mon, 07 Apr 2008 11:00:17 +0000

You found an income property you like.

The place is perfect for you; great location, in fantastic condition. It’s fully rented with good paying tenants in long term leases. The revenues are good enough to cover all the expenses; including your own part of the mortgage….Because, after all, you are buying the place to move in. Right?

Living rent free, what a dream!

But wait a minute. Isn’t the building fully rented?

“Yes, but as the new owner, I can take back one of the units whenever I decide to” – You might be thinking.

Well, it doesn’t really work that way. You see, according to the :

“All tenants have the right to remain in the rental unit indefinitely as long as they respect the terms of the lease…”

How can you repossess one of the units, if there’s no problem with the terms?
Do you have to wait until someone decides to leave in order to move in?

Fortunately, the law also mentions…

“(However) the landlord may terminate the lease under certain circumstances.”

The complete article has been moved to: Repossessing your income property

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Montreal Cultural Properties Advantages & Obligations

Deya Bautista — Mon, 25 Feb 2008 10:34:17 +0000

Montreal has the highest concentration of historic monuments in Canada and more than 40,000 buildings are protected under provincial or municipal legislation. These buildings represent an exceptional collective heritage that the city’s administration is dedicated to protecting and promoting in various ways.

Photography: Caribb

Owners of classified buildings that are recognized as cultural property or located on a historic site, in the Mount Royal Historic and Natural District or in the Old Montreal historical district, must obtain authorization from the ministère de la Culture, des Communications et de la Condition feminine before carrying out alterations.

Owners who wish to modify the exterior of a designated monument or an immovable that is part of a heritage site must comply with the conditions applicable to the preservation of the specific elements of the building, as well as with the municipal by-laws. They must also first apply for a permit from the city.

These heritage buildings may benefit from financial assistance under a joint program of the city of Montreal, the ministère de la Culture, , des Communications et de la Condition feminine and the Société d’habitation du Québec. The by-laws concerning subsidies for the restoration and renovation of heritage buildings and for archaeological excavations was adopted for this purpose.

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The right of undivided co-owners to exclude a potential buyer

Deya Bautista — Tue, 22 May 2007 22:40:26 +0000

The buying of undivided co-ownerships is getting more popular in Montreal, specially in the Plateau area. And it’s quite understandable why. There are advantages over the divided co-ownership (condo), specially when talking about Condo fees.
When buying the undivided, this is an important piece of information to have, both for real estate agents, as well as buyers:

“A real estate broker or agent entrusted with the sale of a co-owner’s share in an undivided co-ownership property must know that the other co-owners have the right to exclude a potential buyer.

In this regard, it is important first to take a look at the indivision agreement that governs the relationship between co-owners. These agreements often require that a co-owner offer his share to the other co-owners before offering it to a third party, or provide for the other co-owners to be able to match the third party’s offer for this share, following the terms of the agreement. A seller who decides to ignore these terms exposes himself to legal action and potential liability for damages.

(…) Whether resulting from the indivision agreement or the Civil Code of Québec, it is important that the seller and any potential buyer be informed of the rights of the other co-owners and their impact on the transaction under consideration. In order to minimize the risks, it is recommended that a waiver of this right be obtained from the other co-owners as soon as the brokerage contract is taken up. This waiver should be drawn up by a lawyer. If it is not known whether such a waiver exists, it is suggested to make any promise to purchase conditional to the seller providing copy thereof to the buyer.”

Source : ACAIQ. Read the original article

Buyer’s Practical Guide

Deya Bautista — Wed, 18 Apr 2007 22:51:55 +0000

Highly recommended for first time buyers (and even the experienced ones!),
Keep up with new brokerage laws and stay informed in order to buy wisely.

This is a free buyer’s guide given by the Broker’s Association (ACAIQ) where you can learn valuable information that will increase your knowledge of a real estate transaction.

The Real Estate Brokerage BUYER’S PRACTICAL GUIDE. (Revised edition)
It comes in a PDF file, free to download and review.

Happy reading!