Are you thinking of putting your house up for sale? Then it's time to dig through your files and pull out a few documents.
You need to find the previous deed of sale to prove that you are the rightful owner of your home, as well as your most recent municipal and school tax bills. Also gather the invoices for any repairs or renovations done to the property, along with your energy bills for the past year.
If you live in a condo, add your shareholder agreement, the minutes, and the financial statements of the condo association to the pile.
And on top of all that, add your certificate of location... Oops! This could complicate things.
Is your certificate up to date?
The promise-to-purchase form from the Organisme d'autoréglementation du courtage immobilier du Québec (OACIQ) stipulates that the seller must provide the buyer with a certificate of location that describes the “current” state of the property. So, your certificate might be outdated, even if absolutely nothing has changed in the property since the last one was issued.
Let’s first remember what a certificate of location is. Mandatory in every real estate transaction, it is a plan accompanied by a report in which a land surveyor gives their professional opinion on the state of your property. It aims to inform the buyer, notary, and mortgage lender of any rights that may affect the property being described.
It contains everything, it describes everything: the land, trees, fences, the building, its exterior, windows and balconies, the pool, the shed, and so on... The document also outlines any easements affecting the property, such as rights of view and passage or easements in favor of public utility companies like Hydro-Québec.
This document also evaluates the status of your property in relation to provincial laws and municipal regulations. In this regard, the cadastral renovation carried out by the Quebec government between the 1990s and 2021, as well as the new mapping of flood zones established by the Ministry of Municipal Affairs, could render your certificate of location outdated.
You’ll understand that the more time passes, the more likely it is that the status of your property may have changed. If your certificate of location is more than five years old, the notary will likely require a new one.
But one thing’s for sure, after 10 years, it will be expired. In 2017, the Supreme Court recognized that by the mere effect of time, ownership of a parcel of land could be acquired after more than 10 years of occupation without opposition (Ostiguy v. Allie). As a result, any certificate of location older than 10 years becomes too uncertain.
So, who should pay?
It’s the seller’s responsibility to provide the document, so they must cover the cost of the new certificate if one is required. But if, in the promise-to-purchase, a buyer demands a new certificate of location and the new one is identical to the existing one, the cost of the new certificate would then be borne by the buyer.
Since it takes three to five weeks to receive a certificate of location, and the notary must review it before the deed of sale is signed, it’s best to think about it now.
In any case, the best thing to do is contact me. We’ll make sure your file is complete and all your documents are up to date... ready for the notary!
