Seller's Guide: your rights and obligations during the sale
You are selling your property. In the vast majority of residential transactions, the buyer chooses the notary — so you will sign before a professional you did not retain. Many sellers find this uncomfortable. It shouldn't be: here is why, and here is what you need to know to approach your sale with peace of mind.
The notary's impartiality protects you too
The notary is not "the buyer's notary." They are a public officer bound by law to a duty of advice and impartiality toward all parties to the act — including you. In practice, the notary must:
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Explain the content of the deed of sale to you and answer your questions before signing
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Ensure the sale price is fully received in trust before the property changes hands
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Pay off your mortgage creditors from the sale price
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Remit the net balance owed to you
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Provide you with the statement of adjustments detailing every allocation
You do not pay the notary's fees for the deed of sale, but you are entitled to the same level of information and rigour as the buyer.
Your rights as seller
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Receive the notary's explanations and ask all your questions before signing
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Review the statement of adjustments and the amounts calculated in your favour (prepaid taxes, fuel, rents)
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Receive the net proceeds of the sale once publication at the Land Registry is completed and verified — generally within days of signing
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Retain, at your expense, your own advising notary if you wish
Your obligations as seller
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Deliver clear title, free of any undisclosed charge
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Provide the required documents: mortgage statements, municipal and school tax bills, certificate of location, condo documents if applicable
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Make truthful and complete declarations about the property's condition (Seller's Declarations form)
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Assume the legal warranty of quality and ownership, unless the sale is made without legal warranty
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Deliver the property in the agreed condition, free of any occupant except a disclosed lease
Your typical seller costs
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Release of your hypothecs: discharge fees and publication costs
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Prepayment penalty, calculated by your lender (included in the discharge statement)
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New certificate of location if yours is outdated, or the cost of a title insurance, as agreed upon by the parties
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Brokerage commission, if applicable
FAQ: Sellers
Do I have to pay tax on the sale of my home?
If the property is your principal residence, the capital gain is generally tax-exempt. If you are selling a cottage, an income property, or a property in which you did not reside continuously, capital gains may be taxable. Consult a tax specialist or accountant before signing to plan your situation.
My property is mortgaged. How does that work?
This is the most common scenario. The notary receives the sale price, pays off your mortgage in full from that amount, obtains the release from your creditor, and publishes it at the Land Registry. You then receive the net balance. Any prepayment penalty is calculated by your lender and deducted at repayment.
Am I liable for latent defects discovered after the sale?
Under the legal warranty of quality, yes — unless the sale was made without legal warranty, which must be clearly stipulated in the deed. Even with the warranty, your liability covers defects that existed before the sale and that the buyer could not detect. An honest and complete seller's declaration remains your best protection.
Can I sell to my child for $1?
You can, but it will not have the tax effect you hope for: tax laws presume that any transaction between related persons occurs at fair market value, regardless of the price in the deed. Capital gains tax, if any, will be calculated on that value. Consult a tax specialist before structuring a family transaction.