Fee conciliation and arbitration
Notaries and their clients usually agree in advance on the amount of fees or on a method for calculating fees as a function of the nature and complexity of the work to be done. The agreement may be verbal or recorded in a contract for services. Clients should thus expect to receive an invoice that reflects the initial agreement. In case of a dispute about the amount, the client may use the conciliation procedure and, if necessary, arbitration to resolve it.
An application for conciliation must be made in writing and submitted within a prescribed period of time: within 45 days of either receipt of the statement of account or knowledge that the notary has withdrawn or withheld an amount from a trust account, whichever is later. Applications received after this deadline will be automatically refused. For an application to be accepted, the client must also acknowledge that he owes the notary an amount for professional fees plus taxes and expenses in consideration for the contract for services with the notary. Failing such acknowledgment, the application for conciliation will be refused. Other remedies are available, and we advise you to consult a legal advisor in this respect.
Full information concerning the time limits and procedure for submitting an application may be obtained by contacting the Fee Conciliation Service of the Chambre des notaires at 514-879-1793 or 1-800-263-1793 ext. 5922.
In addition, to facilitate the procedure, a conciliation application form and the applicable regulation are available for consultation.
Upon receipt of the application, the conciliator determines if it is acceptable and then contacts the notary concerned to obtain his version of the facts. He then tries to reconcile the parties in the way he considers most appropriate. Conciliation is an informal process by which the conciliator tries to bring the client and the notary to agree on the amount of the fees. It is an assisted negotiation in which the conciliator helps the parties exchange offers and counter-offers.
If the attempt at conciliation fails, within 30 days of receiving the conciliation report, the client may apply for arbitration on the form provided for this purpose by the Chambre des notaires. Fees may be charged for the use of this procedure.
Depending on the amount disputed by the client, the Council of Arbitration may consist of one or three arbitrators. The arbitrators are notaries named by the Board of Directors of the Chambre des notaires.
During the hearing, which is not open to the public, the Council of Arbitration hears the parties and receives their evidence according to flexible rules of procedure. The council judges in accordance with the law and equity and must render its written decision within 30 days after the hearing. In its decision the council may uphold or reduce the account in dispute. Moreover, it allocates the arbitration fees between the parties. The decision is final, without appeal, binding on the parties and enforceable, as provided by articles 94 and following of the Code of Civil Procedure. It is also confidential because only the parties receive a copy of it.