THE PRELIMINARY CONTRACT

The purchase of a home

In the exercise of their profession, notaries are often called upon to temporarly hold funds belonging to a company or individual which are to be paid to another person. Such funds may be the savings of someone who is buying property, the proceeds of a mortgage loan (hypothcary loan) or liquid assets from an estate.

So you've found your dream home or property and want to make an offer to purchase

Don't sign anything yet: be prudent and see your notary first.

A preliminary contract is the first step in a process that will make you a proud property owner. It takes place before the actual sale and plays a major role in the entire transaction. Always remember: if your offer to purchase is accepted, the deed of sale will be drawn up according to the conditions contained in it. This is why it is so important to state everything explicitly.

For the transaction to succeed, you must start off on the right foot.

A well-drafted preliminary contract will guarantee a successful real estate transaction
A preliminary contract states all the information needed to protect both you and the vendor, including:

• the description of the property;
• the purchase price and terms of payment;
• pre-sale conditions (housing inspection, mortgage (hypothecary) financing, examination of the declaration of co-ownership);
• the purchaser's obligations (respecting the leases of premises and equipment, paying the transfer duties);
• the obligations of the vendor (delivering the property in good condition, furnishing valid title to the property and a recent certificate of location);
• the dates of acceptance and of closing;
• the name of the notary;
• the declarations of the vendor to the effect that the property conforms to the laws and regulations in force; etc.
  

Be careful to read the preliminary contract before signing it, and make sure you fully understand all its clauses. Remember, this is a legal document, binding in the eyes of the law.