Definition
In a Quebec real estate transaction, the notarizing notary acts as trustee of closing funds — they receive, validate and distribute all funds necessary for the transaction.
**Funds received by the notary**: 1. **Buyer's down payment**: wired by the buyer to the notary's trust account (generally the day before or morning of closing) 2. **Mortgage funds**: disbursed by the lender directly to the notary (the buyer never sees them) 3. **Adjustments**: taxes, condo fees, prepaid rent, etc.
**Funds disbursed by the notary**: 1. **Seller**: receives the net sale proceeds (price − existing mortgage repayment − commissions − adjustments) 2. **Seller's existing lender**: discharge of the existing mortgage 3. **Governments**: transfer duties, GST/QST (new only), unpaid taxes 4. **Condominium syndicate**: arrears, reserve fund contributions due
**Practice**: - All transfers are made by bank wire on closing day - The notary hands over the keys to the buyer once all funds are confirmed and Land Registry publication is initiated - Publication delay: the notary publishes the deed electronically; confirmation arrives within a few hours to a few days
**Security**: Funds in notarial trust are protected by the Professional Liability Insurance Fund of the Chambre des notaires du Québec.