The Notarial Mortgage Deed in Quebec: Role and Costs

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The Notarial Mortgage Deed: An Essential Step in Quebec

In Quebec, you cannot sign a real estate mortgage without appearing before a notary. This is a legal requirement set out in article 2693 of the Civil Code of Quebec (CCQ), which stipulates that an immovable hypothec must be constituted by notarial act en minute. This means the notary drafts the deed, has the parties sign it in their presence, and retains the original (the minute) in their records. This feature of Quebec civil law provides legal protection not found in common law provinces.

The Notary's Role in the Mortgage Transaction

Property title verification: The notary conducts a thorough examination of the chain of title in the Quebec Land Registry to ensure the seller is the legitimate owner and the property is free of undisclosed charges, hypothecs, or servitudes. This verification protects both the buyer and the lender.
Identity and capacity verification: The notary confirms the signatories' identities using official identification documents and verifies their legal capacity to contract. The notary ensures no party is acting under duress or is legally incapacitated.
Drafting the mortgage deed: The notary drafts the deed in accordance with the lender's instructions and CCQ requirements. The deed describes the property, identifies the parties, specifies the secured amount, interest rate, repayment conditions, and special clauses.
Explaining commitments to the parties: The notary has an ethical obligation to explain the scope of the deed to the signatories. The notary must ensure the borrower understands the implications of the hypothec, including the creditor's remedies in case of default.
Publication in the Land Registry: After signing, the notary publishes (registers) the hypothec in the Quebec Land Registry. This step is crucial: without publication, the hypothec is not enforceable against third parties and the creditor does not benefit from its hypothecary rank.

Contents of the Notarial Mortgage Deed

Full identification of the creditor (lender) and debtor (borrower), including addresses and identification numbers.
Legal description of the encumbered property, including lot number, land registration division, and civic address.
Hypothec amount (secured sum), which may exceed the initial loan amount to cover potential fees and interest.
Applicable interest rate on the hypothec and loan repayment terms.
Prepayment clauses, including applicable penalties and prepayment privileges.
Conditions for exercising hypothecary remedies in case of default (art. 2748 to 2794 CCQ).
Special clauses required by the lender: obligation to insure the property, prohibition against modifying the property without consent, etc.

Notary Fees in Quebec

Notary fees for a mortgage deed generally range from $1,000 to $2,000 in Quebec. This amount covers drafting the deed, title searches, Land Registry publication, and disbursements (certificate fees, certified copies, etc.). When purchasing, notary fees also include the deed of sale, bringing the total to approximately $1,500 to $3,000 depending on complexity. When refinancing with the same lender, fees may be lower if the existing hypothec is simply modified rather than entirely renewed.

The Chambre des notaires du Québec: A Guarantee of Protection

The Chambre des notaires du Québec is the professional order that governs the practice of notarial law. It ensures compliance with ethical standards, offers a complaint mechanism for dissatisfied consumers, and administers an indemnity fund to compensate clients who are victims of a notary's professional fault. This regulatory structure provides borrowers with an additional layer of protection in the mortgage process.

What the Borrower Should Prepare for the Notary Appointment

Before the signing appointment, the borrower must generally provide: two pieces of photo identification, proof of home insurance covering the property, a certified cheque or wire transfer for the down payment and adjustments, and any documents requested by the notary or lender. The notary coordinates with the lender to ensure funds will be available on the signing date. After signing, the notary disburses the funds and publishes the deeds in the Land Registry, thereby finalizing the transaction.

Frequently Asked Questions

Why is a notary mandatory for a mortgage in Quebec?

Article 2693 of the CCQ requires that every immovable hypothec be constituted by notarial act en minute. The notary, as a public officer, gives the deed its authentic character, verifies title validity, protects both parties' interests, and ensures legal compliance. This requirement is specific to Quebec civil law.

How much do notary fees cost for a mortgage deed?

Notary fees for a mortgage deed in Quebec generally range from $1,000 to $2,000, depending on the file's complexity (first purchase, refinancing, adding security). These fees cover drafting the deed, title searches, Land Registry publication, and disbursements (certificates, searches). Some lenders offer to absorb part of the notary fees as part of promotions.

What does the notarial mortgage deed contain?

The notarial mortgage deed contains the full identification of the parties (creditor and debtor), the legal description of the property, the hypothec amount, the interest rate and repayment terms, conditions for exercising hypothecary remedies, prepayment clauses, and any special clauses agreed between the parties.

Can I choose my own notary for the mortgage deed?

In most cases, the borrower can choose their notary. However, some lenders require the notary to be on their list of accredited notaries. It is recommended to verify this requirement with your lender before confirming your choice. Notary fees may vary, so it is wise to obtain a few quotes.

What is the difference between a deed of sale and a mortgage deed?

The deed of sale transfers property ownership from the seller to the buyer. The mortgage deed creates the security in favour of the lender over the property. When a purchase is financed, both deeds are generally signed on the same day at the notary's office, but they are two distinct legal documents with different effects.

Does the notarial deed protect the borrower?

Yes. The notary is an impartial public officer with a duty to advise both parties. The notary must ensure the borrower understands the scope of their commitments, that the contract clauses comply with the law, and that the property titles are in order. The Chambre des notaires du Québec governs the profession and offers an indemnity fund in case of professional fault.