Real Estate Talk: Be prepared
when selling or buying

An up-to-date certificate of location and mortgage pre-approval smooths the way

By Joseph Marovitch

October 16, 2025

When in the market to buy or sell a residential property, surprises are not something anyone wants. However, they do arise in the real estate process and, if considered challenges, can always be overcome or present an opportunity to acquire better terms or price. It is better to prevent surprises by preparing for them in advance when possible.

Surprises are not something anyone wants. However, they do arise in the real estate process.

To avoid surprises that could hinder the transaction and possibly cancel the offer, steps should be taken in all cases.

SELLER’S DECLARATION

Sellers should always complete the seller’s declaration with all the major issues that can significantly devalue the property. The buyer is required to acknowledge and sign the seller’s declaration and submit it with the promise to purchase.

By signing the seller’s declaration, the buyer has considered all the issues stated and offered a price based on the document. Therefore, those stated issues are not points for renegotiation; only newly discovered issues from an inspection are.

CERTIFICATE OF LOCATION FOR SELLERS

A certificate of location indicates the parameters, cadastre numbers, infringements, and other title issues. It can take up to three weeks or more to acquire a new one. If there have been changes to bylaws, structures on the property, cadastre numbers, or other documents, the seller is required to provide an up-to-date certificate before signing at the notary.

Banks require a new certificate after seven or ten years, whether there are changes or not. According to the OACIQ, in clause 10.1 of the promise to purchase, if the buyer’s financial institution requires a new certificate but there have been no changes, the buyer is responsible for paying for the new certificate.

However, if the seller waits till the accepted offer, a new certificate can cause a significant delay in signing at the notary. If an extension of the finance condition is required, this would provide the buyer with an option to cancel the offer. Therefore, it would be wise and imperative to ensure the certificate is up to date and valid, or to acquire a new one at the start of the sales process.

BUYER’S PRE-APPROVAL

If the buyer is purchasing a property for cash, the process is simple. The buyer must provide proof of cash financing with the promise to purchase. If the buyer is financing the property with a mortgage, a pre-approval indicates how much money the bank is prepared to loan and how much the buyer must put as a down payment.

A buyer has better chances of negotiating a better price and terms if the seller knows the funds are there and available. The buyer also needs to understand what financial resources are at their disposal before shopping for a home. Therefore, it is prudent to acquire a pre-approval at the beginning of the buying process.

Another benefit of acquiring a pre-approval is that the buyer can secure the interest rate for up to three months. If interest rates increase in the three months, the buyer maintains the lower interest rate in the pre-approval. If rates decrease within three months, the preapproved buyer gets the lower rate.

The information in these articles is a summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly. As well, to view past articles, click here.

State Of The Market

The good news is that banks are easing up on interest rates for uninsured mortgages. Rates are now below 3% according to Robert McListeris at Mortgagelogic.com in a recent article in the Financial Post. Montreal continues to experience rising prices, increased transactions, low interest rates, and inflation.

‘Many economists predict continued growth and market stabilization for the remainder of 2025.’

Factors fueling the improved market include low mortgage rates, increased confidence due to Montreal outperforming Toronto and Vancouver with rising demand, favourable rates, and strong global indicators.

Rising rental costs are also driving home ownership. If one is paying $2000 per month for rent, money that will not come back, renters are opting for investment by paying the same $2000 to a mortgage and getting the money back with interest. One other factor is that banks, seeing a struggling real estate market, are offering better rates and terms for loans.

Many economists are predicting continued growth and market stabilization for the remainder of 2025. However, there remains some risk from national and international politics and global issues. Both buyers and sellers must perform due diligence and take precautions to reduce risk from possible rate and inflation fluctuations.

For buyers, competition is intense, but the increasing supply is providing more choice and negotiation room. For sellers, strategic pricing and tactical targeted marketing give a significant advantage by increasing exposure, attracting multiple offers, achieving a higher selling price, and securing better terms.

For further discussion, leave a comment or call me directly.
Have a great week.

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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep-away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or josephmarovitch@gmail.com