The Notary in the Sale of an Income Property

What is the notary's role in an income property sale?

In Québec, the notary is a public officer and an impartial jurist. As a member of the Chambre des notaires du Québec, they have a duty to advise all parties and ensure the legal validity of the transaction. In the sale of an income property — plex, 6-unit building, or multiplex — their role goes well beyond a simple signing: they secure the transaction from start to finish and guarantee that the buyer will become the owner of a property free of undisclosed encumbrances.

Concretely, the notary receives the funds, withholds the amounts needed to discharge the seller's mortgage, remits the balance to the seller, and then registers the deed of sale in the Québec Land Register. This registration is what makes the transfer of ownership enforceable against third parties. To properly prepare for this step, it is useful to first have an appraisal of the property's value and up-to-date documents on leases and encumbrances.

Title and Encumbrance Verification

Before preparing the deed of sale, the notary carries out an examination of title. They trace the chain of ownership to confirm that the seller is the legitimate owner and has the right to sell. They also verify all encumbrances registered against the property:

• Mortgages and other financial guarantees to be discharged before or at closing.
• Easements (rights of way, view rights, utility rights) that run with the property.
• Notices, rights, or priorities that may affect the title (e.g., unpaid municipal taxes).

For an income property, this step is critical: a poorly documented easement or an uncertain lot boundary can affect value and financing. This is also why an up-to-date certificate of location from a land surveyor is often required. The notary ensures the certificate reflects the actual state of the property.

Drafting and Signing the Deed of Sale

Once the title has been confirmed and the buyer's financing is in place, the notary drafts the deed of sale. This official document reflects the conditions negotiated in the purchase offer: price, payment terms, seller's declarations, current leases, adjustments, and any special clauses. This is why it is essential that the purchase offer be well drafted beforehand — our guide on clauses to include in a plex purchase offer details the key points to validate with a notary.

On signing day, the notary reads and explains the deed to the parties, answers questions, and receives signatures. They then retain the original (the minute) and issue copies. It is the notary who orchestrates the payment of the price and the discharge of the existing mortgage, step by step, in the order prescribed by law.

Pro-rated Allocation of Rents, Deposits, and Taxes

This is one of the distinguishing features of an income property sale compared to a single-family home. The notary calculates the pro-rated adjustments as at the date of sale:

• Rents: the current month's rents are allocated between the seller (up to the sale date) and the buyer (from that date onward).
• Security deposits and rent advances: where they exist, they are transferred or credited to the buyer, who will be required to return them to tenants when applicable.
• Municipal and school taxes: allocated pro-rated based on the portion of the year already paid by the seller.
• Other prepaid expenses (assigned insurance, maintenance contracts) where applicable.

These calculations directly affect the net amount the seller receives. An error or oversight can represent several thousand dollars on a multi-unit property — hence the importance of retaining a notary who is comfortable with rental transactions.

How a Notary Closing Proceeds (Steps)

Once the purchase offer is accepted, the transaction follows a fairly predictable path to signing the deed of sale. Understanding this sequence helps the seller gather the right documents at the right time and avoid delays. Here are the main steps as coordinated by the instrumenting notary:

1. File opening. The notary receives the accepted purchase offer and collects contact details for the parties, the lender, and any brokers.
2. Title examination and searches. The notary traces the chain of ownership, verifies encumbrances in the Land Register, and requests statements of account (taxes, mortgage to be discharged).
3. Lease and rental document review. For an income property, the notary validates current leases, rents, deposits, and relevant notices.
4. Receipt of lender instructions. The buyer's financial institution sends its disbursement directives and the mortgage deed to be prepared.
5. Drafting the deed of sale. The notary prepares the draft deed and the adjustment statement (rents, taxes, deposits pro-rated).
6. Signing. The parties sign in the notary's presence; the notary reads and explains the deed and answers questions.
7. Disbursement and discharge. The notary repays the existing mortgage, remits the net balance to the seller, and hands over the keys.
8. Land Register registration. The notary registers the deed of sale and the mortgage deed, making the transfer enforceable against third parties.

From start to finish, this process typically takes a few days to a few weeks depending on document availability and financing. A well-prepared file — up-to-date leases, valid certificate of location, known encumbrances — significantly speeds things up.

In Québec, Who Chooses and Who Pays the Notary?

In Québec, it is generally the buyer who chooses the instrumenting notary, meaning the one who receives the deed of sale. The reason is straightforward: the buyer is financing the purchase and their mortgage lender requires a notary to prepare and register the mortgage deed. It is also the buyer who typically assumes the instrumenting notary's fees.

Selling directly to a buyer, without an agent, does not change this principle: the final signing always goes through a notary. To understand the full process, see our guide on selling an income property without an agent in Québec.

Notary Costs (Expense Breakdown)

A notary's bill is not limited to professional fees: it also includes disbursements (amounts paid to third parties, such as searches and registrations) and applicable taxes. For an income property, certain line items exist on both the buyer's and seller's side. The table below presents the main items and who typically bears them in Québec. The ranges are indicative and vary with the complexity of the file — always request a written quote.

Expense item	Who typically pays	Indicative range
Deed of sale fees	Buyer	Varies (often ~$1,500 – $3,000 and up)
Mortgage deed fees	Buyer	Varies by lender
Title searches and examination	Buyer	Varies (included or billed separately)
Land Register filing	Buyer	Varies (fixed government fees per deed)
Discharge of existing mortgage	Seller	Varies (fees + filing)
Purchase offer review by advisory notary	Seller (optional)	Varies based on time required
Taxes (GST/QST) on fees	Based on the relevant party	Added to professional fees

Note: the welcome tax (transfer tax) is paid by the buyer to the municipality; it is separate from notary fees. On the seller's side, the most common item remains the discharge of the existing mortgage.

Seller: Having the Purchase Offer Reviewed Before Signing

Even though the buyer chooses the instrumenting notary, the seller is well advised to have the purchase offer reviewed by their own notary BEFORE signing. The purchase offer is the commitment that sets the price, conditions, and timelines: once signed and accepted, it is difficult to go back. This is strongly recommended especially for high-value properties (e.g., above $500,000) or those with unusual clauses.

An advisory notary acting for the seller will notably:

• verify that the conditions and timelines (financing, inspection, document access) are realistic and properly framed;
• clarify the seller's declarations to limit the risk of claims after the sale;
• validate the treatment of leases, rents, and deposits and the adjustment date;
• confirm what is included or excluded (equipment, appliances, maintenance contracts);
• flag any clause that could reduce the net price or delay closing.

This additional cost is modest compared to the price of an income property, and it can prevent costly mistakes. Our guide on clauses to include in a plex purchase offer usefully complements this review.

Notary, Estate, and Family Transfer

The notary plays a key role when an income property is part of an estate or family transfer. Before even thinking about selling, it is often necessary to regularize the title: verifying the will, declaration of transmission (the document that officially transfers the property to the heirs), and then, where applicable, distribution among heirs. Only once the title is in the names of the correct owners can the sale proceed.

An estate also adds tax considerations (capital gain, value at death) and delays. It is better to retain a notary early — and if needed an accountant — to avoid bottlenecks. Our guide on selling a property in an estate in Québec details the steps and common pitfalls.

Questions to Ask Your Notary

Before retaining a notary — or signing with the one chosen by the buyer — a few questions help you avoid surprises and confirm they are comfortable with income properties:

• Do you have experience with income property sales (plex, multiplex) and the allocation of rents and deposits?
• Can you provide a written, detailed quote (fees, disbursements, taxes)?
• What documents do I need to prepare (leases, rent roll, certificate of location, statements of account)?
• What is the expected timeline between signing the offer and closing?
• How and when will I be informed of the net amount I will receive?
• How will security deposits and the current month's rents be handled?
• Are there encumbrances to discharge (mortgage, priorities) and who bears those costs?
• In the case of an estate or family transfer, what additional steps should be planned?

A good notary will answer these questions clearly and put you at ease. If you are unsure which professional to consult, our page find the right specialist guides you in just a few minutes.

How Much Does a Notary Cost to Sell a Plex?

In Québec, notary fees are not set by an official tariff: they are freely negotiated and vary with the complexity of the file. The more units a property has, the more leases to analyze, encumbrances to discharge, or special circumstances (estate, undivided co-ownership), the greater the work — and the fees.

As a rough guide only, the deed of sale for an income property often falls in the range of $1,500 to $3,000 and more, plus taxes and disbursements (title searches, Land Register registrations, certificates). Always request a written, detailed quote before retaining a notary, and specify that it involves a rental property with rent allocation.