The deed of sale must show the intent of both the seller and the purchaser. It confirms the agreements between the parties, in particular those of a financial nature. These agreements are generally written in details in the offer to purchase. Keep in mind that it is not compulsory to reproduce in the deed of sale, all the terms and conditions of the offer to purchase. This is the reason why the deed of sale generally contains a usual clause that mentions that, unless there is a conflict, the parties confirm "the agreements agreed in the promise to purchase, but not reproduced herein".
Selling price
The main obligation of the buyer is to pay the price on the day determined in the offer to purchase. The deed of sale at the notary is none other than the confirmation of the prior-contract. In principle, all the elements relating to the financial aspect of the transaction are already known at the time of signing the authentic act, these having been reported in the offer to purchase.The deed of sale thus indicates the sale price and the terms of payment. Generally everything is in cash either when signing the deed of sale.
However, it is possible that the parties have agreed that the sale price will be paid by one or more payments payable within a period set in the same deed of sale. This method of payment of the sale price, commonly known as the sale price balance, matches to the balance between the price requested by the seller and the liquidity that the buyer must acquire for the building. In exchange, the buyer pays interest to the seller, depending on the established repayment term. The agreement is normally concluded before a notary and protected by a mortgage.
Management of sums relating to the sale price
In the weeks preceding the signing of the deed of sale, the notary will check the information mentioned in the offer to purchase. The seller must complete the data that may be requested, depending on the case: balance of themortgage in progress, unpaid commoncharges, special contribution in the making, etc.
Remittance of sums by the buyer
Before the date of signature of the deed of sale, the notary must hold, irrevocably, the entire sale price (the sums from the mortgagee and the buyer's down payment). If the sale price is paid in part by the sums paid by a mortgagee, the notary must send to the financial institution the documents necessary to obtain the disbursement of the loan. As for the buyer's down payment, he will have to give a bank draft or a check several days before the signing of the deed of sale. Once the sums have been collected in his trust account, the notary issues receipts confirming these deposits.
Day of the signing of the deed of sale
In principle, payment of the sale price must be made at the time of signing the deed of sale. In case of financing by mortgage loan, the notary is responsible for requesting the release of funds from the lending institution. These funds are then deposited in his trust account.
On the scheduled date, both parties (seller and buyer) meet at the notary to complete the transaction. After the signature of all the parties, the notary does not charge to have the deed of sale published in the land register. It is only after a few weeks that he will hand over the authentic deed of sale to both parties, also keeping an original, called "minute".
Delivery of sums to the seller
As soon as the notary is able to validate that adverse entries have not been published against the immoveable (such as a legal hypothec of construction) in the period between the signing of the deed of sale and its registration, he will remit the amounts in his possession to the person or persons entitled thereto.
WHAT YOU SHOULD KNOW! When the sale is not a cash sale, the balance, familiarly called “balance of sale’s price”, is generally secured by a hypothec and a right of resolution of the sale in favor of the vendor, who becomes a creditor.
WHAT TO KEEP IN MIND: The amount of the sale’s price to be paid by the purchaser will be remitted to the notary in most cases by the means of a bank draft. The notary will not accept cash, a personal cheque and often a certified cheque.
WARNING! For the protection of the purchaser, every payment should be deposited in the trust account of the notary.
