At the Chamber of Notaries, we do not look at expenses. All things considered, the Chamber spends more than any other professional order. However, her lifestyle is financed mainly with money from the public whom she has the mission to protect. But the government is slow to change the rules of the game.
Posted at 1:13 a.m.
Updated at 5:00 a.m.
It is the mechanics of the Notarial Studies Fund that poses problems.
This fund is largely made up of interest on sums passing through the trust accounts of notaries, when purchasing a property, for example.
Often these are only small amounts, as the money only stays for five days on average. But some customers, whose money is frozen for several months, can see thousands of dollars in interest escape them.
All these interests, large or small, are paid into the Notarial Studies Fund whose mission is notably to promote law reform, legal research and education, and the quality of professional services. Last year, the Fund paid $7.5 million to several organizations dedicated to these causes.
However, the Chamber of Notaries also finances a large part of its current activities by drawing on this fund.
Its most recent annual report indicates that it drew 16.5 million in 2022-2023, which allowed it to pay 60% of its total expenses of 27.6 million… and to generate a comfortable surplus of 9 million.
Over five years, $81.1 million was paid by the Notarial Studies Fund to the Chambre des notaires. A huge sum that raises eyebrows.
The directors of the Chamber of Notaries ensure that the sums drawn from the Study Fund are used in accordance with the law and the governance policy.
Nonetheless, it is disturbing to note that this easy money allows the Chamber to spend considerably more than other professional orders, i.e. $7,170 per notary registered on its roll. This is five times higher than the spending ratio per member in a varied sample of other professional orders ($1,395).
The Chamber explains that it must assume several responsibilities that other orders do not have, such as the temporary guard service, the registry transfer service or even the register of wills and mandates.
But in the latter case, the Chamber pockets twice as much income (4.1 million) as expenses (2.1 million), its financial statements show. In other words, the Chamber makes money from the management of these services, the prices of which are established by law.
But let’s return to the Notarial Studies Fund.
In February 2023, the minister responsible for the application of professional laws, Sonia LeBel, asked the Office of Professions to analyze in depth its operation. This intervention followed the publication of an article by our colleague Louise Leduc which raised serious questions1.
Why did the Study Fund help the Chamber acquire, through a trust, half of a building in downtown Montreal in which its offices are located? It is not his mission to invest in real estate.
Why did the Fund allocate $1.2 million to the Professional Association of Notaries of Quebec (APNQ) and the Union of Notaries of Quebec (UNQ)? These lobbies defend the interests of notaries. Not those of the public.
Two years later, nothing has changed. We are still awaiting the conclusions of the Office which commissioned the external firm MNP to shed light.
It must be said that the Office has its hands full with special projects, such as the ongoing reform of the professional system (bill 67). In addition, the organization is suffering from a worrying staff turnover of 15%. It’s even worse in the monitoring and orientation department: 5 out of 17 employees left their position, just for the 2023-2024 financial year.
On this account, we are entitled to wonder whether the watchdog really has the means to ensure the surveillance of the 46 professional orders.
Thanks to the real estate boom, the Notarial Studies Fund has become a goose that lays golden eggs which contains 208 million, twice as much as five years ago. While access to justice is failing everywhere, it is imperative to make the best use of this money, with an emphasis on legal aid for citizens.
It is urgent to review the governance of the Fund, by separating it from the Chamber of Notaries. The blur has lasted long enough. The House should focus on monitoring its members, instead of handing out grants in the name of the Fund.
This mission should be carried out by an independent body, as in other provinces, where law foundations play this role.
We should also ensure that notaries’ clients are informed in writing, as in Ontario, that they can open a special account allowing them to receive their interest if their money is frozen for a long time. In our country, some people find out too late and lose thousands of dollars.
Finally, it is unacceptable that the Notarial Studies Fund could be used to replenish the Compensation Fund of the Chamber of Notaries. The public’s money must serve the public’s interests. No need to fix things by a notary.
1. Read the article “Trust accounts: a windfall for the Chambre des notaires”
