The sale of a residential immovable intended for a natural person who acquires it to live in it, whether it is built or to be built by a builder or developer, must be preceded by a preliminary contract. Article 1785 of the Civil Code of Quebec obliges the builder to enter into such a prior-contract with the buyer (which precedes the contract of sale itself). This contract formalizes the promise to sell and buy the property by the parties involved in a transaction. In particular, it sets the purchase price of the home, its delivery date and the date of the deed of sale, usually the day on which the buyer will be able to move in. A deposit will usually be required when he signs it.
As part of a sale of a new or building property (to be built or under construction), the developer and the buyer must sign a preliminary contract. From a legal point of view, it is a promise to purchase that binds the parties. This contract determines the precise conditions of the sale. As soon as all the conditions for the sale of the private portion are met, the deed of sale is signed before a notary.
Obligation of the promisor-purchaser
From a legal point of view, by signing it, the promisor-purchaser undertakes to purchase the property designated in the preliminary contract and to pay it at the agreed price. And unless otherwise provided for by law or in the contract, it will be difficult, if not impossible, to free himself from a preliminary contract without legal and financial consequences.
Obligation of the builder or promoter
For its part, the builder or developer has the obligation to deliver the building within the agreed deadlines, according to the specifications provided for in the preliminary contract, and to transfer the title deeds to the promisor-purchaser.
The notary: a key person
Unless the promisor-buyer has consulted him before signing the preliminary contract, which would be an excellent idea, the notary will only intervene at the end of the transactional process, when the buyer and seller have agreed on the essential terms of the transaction. Know that this professional, even if he is well-intentioned, is not a magician for all that, that is to say that he will not be able to "unravel" what was accepted in the preliminary contract.
WHAT YOU SHOULD KNOW! As any contract, you must read and understand the preliminary contract before signing it. As a precaution, take your time and review it peacefully and if needed, show it to a professional (lawyer or notary).
WHAT TO KEEP IN MIND: If you purchase an already built or to be built immovable to live in it, from a builder or a developer, the sale must necessarily be preceded by a preliminary contract. In the absence of this contract, you will be entitled to annul the sale, if you can show you have suffered a serious prejudice.
WARNING! The preliminary contract signed with a developer can be qualified as being an “adhesion contract”, as you adhere to it without having been able to negotiate its provisions. In other words, this contract is generally imposed, as is, by the developer. You therefore should read it carefully, as preliminary contracts prepared by developers are often one-sided. If you have any doubts about its content, consult a lawyer or a notary with experience in co-ownership Law.
