BUYING A HOME IN DOWNTOWN MONTERAL
If you are considering investing in a piece of Downtown Montreal real estate, you may want to discuss it with a licensed Real Estate Broker who only works in that area.
At the Downtown Realty Team, we will share with you all the information you will need to determine if buying a property in Downtown Montreal is the right thing for you. We know the buildings, the neighbourhoods, the amenities in the area and the type of people who live there.
We are very used to helping local Montrealers, as well citizens from the rest of Canada and international buyers find the best home or investment (hopefully both) for them available. We have professional insurance, buyers and sellers insurance in case one of the parties withdraws, and a team to help provide a service seven days a week.
You can contact us at firstname.lastname@example.org if you have any questions or call us at +1 514 312 4233 to see if we can help in any way.
We are look forward to hearing from you. Our Team
ADDITIONAL COSTS FOR BUYERS
Before we begin, here are no addtional costs for overseas buyers in Montreal. So everyone pays the same amount whether they are Canadian or not.
Typically, the purchase of any property requires the following additional costs.
1. Notary: This is a professional who takes care of the legal aspect of the purchase and is traditionally chosen by the buyer(s) although he/she is by law required to be impartial towards both parties. This person replaces the two lawyers usually used under common law. There is no need for a lawyer in Quebec as the notary fulfills that role. The associated costs are paid by the buyer and will usually be between $1,000 and $1,500 for the sale.
2. Inspection of the property: This is usually done by a professional inspector who will perform a visual inspection of any property. This is very important for houses and a little less for condos but the cost will vary between $300 and $1,000 depending on the size of the property. Usually allow for between $400 and $600.
3. Land transfer tax: Also known as the 'Welcome Tax' it is a sum required by the City. This can vary throughout the province but in Montreal it will usually amount to between 1% and 2.5% of the purchase price or the official City Evaluation, whichever is higher. A precise calculation can be made but we would need to know the exact amount. For more information, please see our FAQ page.
4. Miscellaneous: It is important to know that if you are buying a resale property, you should allow for a few hunderd dollars to repair a few things here and there such as lights, changing locks and a few maintenance issues which may not have been taken care of by the seller. The sky is the limit but you should budget $500 for little things here and there.
Although there are several other things that could add to these sums, these are optional. 99% of all sales will only require what is above.
Resale properties do not require the payment of a sales tax, unlike new construction. The sales tax can amount to nearly 15% depending on the price of the property but usually, properties over half a million will bear the full burden of the tax.
THE STEPS TO BUYING A PROPERTY IN DOWNTOWN MONTREAL
Step 1: Find a Real Estate Broker who knows the area and the Downtown market.
Step 2: Request from your Real Estate Broker information on properties that are for sale that match your criteria and budget. Meeting with your Agent or having a phone conversation with him will help enormously in narrowing down the selection process.
Step 3: Visit the properties of interest.
Step 4: Make a shortlist of favourite properties and ask your Real Estate Broker to evaluate your first choice based on sold comparables of the same type in the same area.
Step 5: You will need to sign a 'promise to purchase' which is a legal document designed by the Real Estate Regulatory arm of the Provincial government. This document is meant to protect the public and is used by every Real Estate Agent legally entitled to practice in the Province of Quebec. The promise to purchase will often be followed up with one or more 'counter offers'. These are smaller documents attached to the original offer which contain only what has not been accepted in the original offer. Usually this is where the price is negotiated but it could also be the closing date and the inclusions.
Note: Only a Real Estate Broker is accountable for what is written on a promise to purchase. Not using a Real Estate Broker and the Standard Forms may expose you to legal repercussions.
Step 6: Once the Promise to Purchase has been accepted, you will have a chance to take a look at all the legal documentation associated with the property and also call in an inspector to insure that there are no major issues in the unit or building. If you need a mortgage or a bank loan, this is the time during which the process of getting the approval is.
Step 7: Removal of Conditions. Once you are satisfied with the overall condition of the property and with the legal documentation (and the mortgage has been approved) the conditions will be removed and the offer is considerd 'firm'.
Step 8: The Closig Day. On this day you will meet with the Notary to sign the Act of Sale which is the legal document drafted by a Notary that changes the title ownership of the property from the previous owners to the new owner(s). As of this day, you are effectively the new owner of the property.
Alex Kay . Charles La Haye . Michael Martin
Real Estate Brokers . Courtiers Immobilier
Downtown Realty Team - Equipe Immobilier Centre Ville
REMAX Action inc. Westmount
Bur: (514) 364.3222 Fax : (514) 364.0743
8280 Boul. Champlain, LaSalle, H8P1B5