In Quebec, the sale of a building is governed by the provisions of the Civil Code of Quebec and certain requirements of the Canada Shipping Act, including the registration of the building in the Canadian Register of Vessels. Because the building represents a valuable asset, the sale will generally be documented by a written contract.

The Canadian Parliament, which has jurisdiction over navigation legislation, is the only authority empowered to control the registration of vessels and can impose restrictions on the ownership of Canadian buildings and their transfer.

Under the Canada Shipping Act, any owner registered in the Register is deemed, with respect to third parties, to be the owner of the registered building. Courts recognize a good and valid title to the building, or a portion thereof, in a bona fide purchaser who buys the building from the owner duly registered in the register, subject however to any maritime liens and mortgages registered in the Register.

It should be mentioned here that the buyer of an unregistered building does not benefit from the same protection. There is no other register than the registration one to ensure to third parties that the possessor of the sold building is the true owner. In such a case, a buyer will never have more rights than their seller. If the title of the latter is defective, the buyer's title will be affected by the same defect.

Given the complexity of the system, it is important to consult a Notaire-Direct because:

• The notary is a specialist in title search and can ensure that the building is free from any encumbrance at the time of acquisition;
• Funds will be held in a trust account until the transaction is complete;
• The practicing notary is required to carry liability insurance;
• The notary is a specialist in drafting contracts, including sales contracts;
• The notary is obligated to verify the identity of the parties;
• The notary will ensure the registration of the sale in the Register to make it binding on third parties.