N-3, r. 5 - Regulation respecting trust accounting by notaries

Section 26 Disposition versions

2012-09-01

26. A notary shall maintain strict control over the receipt, deposit, withholding, and use of funds entrusted to him. To that end, the notary shall, in particular,

(1)  receive and deposit all sums required for the execution of the act for which he has been mandated, before the act is signed;

(2)  ensure that the funds received are sufficient to cover all disbursements and to avoid an overdraft of the client’s account;

(3)  deposit receipts before any cheques or other payment orders issued are cashed, to avoid paying cheques issued for one client using sums belonging to another client;

(4)  use the first disbursement from his trust account, in a file involving the execution of an act of sale of an immovable under construction, for the purchase of the immovable and the cancellation of all the charges, prior claims or hypothecs not assumed by the purchaser;

(5)  withhold funds, where applicable, until publication of the act creating or transferring rights and its indexation in the relevant registers without any entry detrimental to the rights created or transferred;

(6)  cover any debit balance, whatever the cause, immediately and with his own money;

(7)  transfer into the general trust account, before their disposition, all sums debited from a special trust account;

(8)  follow up on cheques and other payment orders within 6 months from the date of their issue to ensure that they are cashed; and

(9)  transfer to the Minister of Revenue all funds, securities, or other property that have not been the subject of any claim, transaction, or written instruction as to their use, by any interested party, within 3 years following the date of their exigibility.

O.C. 995-2002, s. 26.