your money is always safe
All the money necessary for a transaction will pass through your notary. You will bring him your downpayment through a bank draft and your financial institution will transfert him all amounts through a wire transfer. All these amounts will be deposited in an in “trust” account, which every notary in the province of Quebec in required to hold. These accounts are regulalry verified by the Chambre des notaires du Quebec and a verification by a chartered accountant is mandatory each year.
Following the signing of the Deed of Sale, many vendors are surprised to hear that they don’t receive their money right away. In fact, the notary usually holds the funds 3 to 5 business days following the signing. Here are the reasons why :
The notary must register the Deed of Sale at the land registry office of the regisration division your property is situated in (ie. Montreal, Laval, Laprairie, Chambly, etc.). After the Ded is sent to registration, the notary must wait for validation that the purchaser is actuallt the registered owner.
The notary must wait for the funds received to be verified by his financial institution and ensure that said funds are sufficient to cover any debts on the property (existing hypothecs, unpaid taxes, etc.).