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Definition and impact on the real estate broker’s work

Properties for sale may be charged with a legal mortgage. Section 2724 of the Civil Code of Québec sets out the claims that the legislator has chosen to protect:

“Only the following claims may give rise to a legal mortgage:

  1. claims of the State for sums due under fiscal laws, as well as certain other claims of the State or of legal persons established in the public interest, specially provided for in specific Acts;
  2. claims of persons having taken part in the construction or renovation of an immovable;
  3. the claim of a syndicate of co-owners for payment of the common expenses and contributions to the contingency fund;
  4. claims under a judgment. ”

Impact on the real estate broker’s work

Regardless of the type of legal mortgage, the fact that it affects the immovable for sale will have an impact on the broker’s work. The existence of such a mortgage does not prevent the broker from accepting a brokerage contract to sell. However, relevant statements must be included on the forms. The existence of such legal mortgage depends on the publication of notices in the appropriate register, based on the nature of the property to which the mortgage relates.



As part of the brokerage contract to sell, the broker mentions the existence of a legal mortgage in section D2.8 of the Declarations by the seller of the immovable form, with the relevant details to be entered in section D15, including an indication in favour of which individual or legal person this mortgage exists.

This information must appear in the description sheet in the Collaborator Info.

For more information: When to recommend the consultation of an expert





Last updated on: December 18, 2023
Reference number: 266042