Real Estate Law
Transfer of Title/Ownership
Real Estate Law
Transfer of Title/Ownership
Transfer of title happens when a person is added or removed from the property ownership or title by the owner of the property. In this transfer of title process, many documents are needed such as ownership documents, property tax bills, bank confirmation, property insurance, and much more. Contact us for Transfer of Title.
Steps in Title Transfer
In general circumstances of title transfer, a homeowner can add another family member, remove a family member, or get new unrelated persons on the title. The steps in title transfer will include:
- Complete all the required documents (with client signatures as and where needed) and gather the supporting documents
- Review the filled-up forms as to their completeness and accuracy towards the process of transferring title
- Get the title change documents registered and report them to the clients
- Send written intimation to the property tax department and, the condominium management office of changes in ownership (wherever applicable)
In all cases of transfer of title, the onus will be on the person receiving the transfer or the homeowner to make sure that the necessary steps are carried out to:
- Perform title searches
- Obtain title insurance
- Update the contents and fire insurance policy
- Update ownership records in the utility bills
- Advise current mortgage lender of the title changes
- Obtain appropriate legal advice for the tax and other implications of the title transfer
For all ownership transfers of residential property, all parties in the title transfer process need to send their request with all supporting documents like property tax bills, current transfer deed to the Real Estate Lawyers Mississauga. They attend the office of the real estate lawyer to sign all the required title transfer documents.
When the transfer documents are about to be signed, all the signees need to give their photo identification. The Law office then retains it for their records.
All fees related to the title transfer such as legal fees, land transfer tax, legal disbursements, land registry sub-searches, and registration costs are to be paid at this time. Two separate lawyers are needed if transfers happen between two unrelated persons.
Title Transfer in Separation & Divorce Circumstances
Your Real Estate Lawyer prepares the necessary documentation once all the required documents have been received. In cases of common law breakup and matrimonial circumstances, a separation agreement or court order will be required. The separation agreement or court order will be needed where the present owners are married to each other or are common-law partners in the process of separating from each other or already separated.
The transfer is Land Transfers Tax-exempt if the conveyance of transfer is a direct consequence of a written agreement or court order as per which the parties are living apart and separate. In this case, the value of the consideration is the total of the given consideration including the amount outstanding due to encumbrances.
In divorce and separation cases where a court order exists, the land transfer is waived off. Gifting of land from one spouse to another can take place without any payment of land transfer tax.
Transfers Between Spouses
Any land transfer amongst former spouses is subject to land transfer tax in the absence of specific exemptions. Any transfer where both spouses are living together is exempt if it is done out of love and affection.
Transfers Amongst Trustees & Nominees
Land transfer tax can be saved if the trustees transfer the land to the beneficiaries. There are certain transactions where there is no consideration for the land transactions which has taken place:
Transfer to the trustee from the beneficial owner: If a party wishes to create a beneficial owner-nominee relationship with a legal title transfer to a nominee title holder
Trustee to trustee: in this case, a nominee title holder transfers legal title from itself to another nominee titleholder who holds the beneficial owner title
Trustee to beneficial owner: In this circumstance, both the beneficial owner and the nominee title holder become legal titleholders of the beneficial interest inland.
In the above circumstances, a supplementary affidavit needs to be submitted, signed by the transferee and the transferor. The affidavit also mentions that the consideration value of the transfer is nil and market value should not be determined. Registered transfer in the above situations needs the completion of specific Teraview statements.
Survivorship Applications
Right of survivorship in Ontario is a legal principle as per which the surviving partner or spouse becomes the sole owner of the house upon the death of the other partner, where both were joint owners of the home.
This principle is applicable in joint tenancy cases as well. So, if one joint tenant dies, the surviving joint tenant becomes the sole owner. This rule is applicable unless the deceased was using it as a matrimonial home with another person.
It is vital that the name of the deceased partner is removed from the title to ensure smooth dealings with the property in the future.
How We Can Help
At Nanda & Associate Lawyers, our experienced Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them.
Our Mississauga Real Estate Lawyers are available for a consultation. Come and experience the quality legal counsel and personalized care we give to each client. We ensure prompt communication and a professional approach to achieve successful outcomes for you.
Feel comfortable interacting with our caring team who speak more than 15 languages like English, French, Spanish, Italian, Portuguese, Albanian, Hindi, Punjabi, Kannada, Telugu, Tamil, Bengali, and much more.
Frequently Asked Questions
What is the Title Transfer process in Ontario?
The term ‘title transfer’ refers to the action of shifting legal ownership of a property from one person to another. It allows the current owner to change the dynamic of ownership either fully or partially, for example, they can either add or remove another individual on the title, as per their wish.
This entire process is overseen by a licensed real estate lawyer. Without legal representation, a Title transfer cannot be labelled valid, as it is a requirement by law for real estate lawyer to monitor the entire transfer process and handle the associated paperwork too. This helps to reduce the risk of fraud and compliance of legal requirements. The real estate lawyer you hire will also guide you on which documents to gather for the transfer and will conduct a title search on your behalf.
What is the best way to transfer property title between family members?
Determining the best way to transfer property title between family members depends on many factors, such as your financial situation and property’s circumstances.
The most straightforward and popular way is a ‘gift transfer’, where the property is transferred without any payment. Alternative methods include selling the property to a family member, transferring it via Will, or adding a family member to the Title utilising joint tenancy or tenancy in common.
However, to best understand your situation, it’s essential to consult a real estate lawyer with decades of experience. This ensures that the transfer is done legally while meeting your specific requirements.
How to transfer home ownership in Ontario?
In order to do this, first a ‘Title Transfer’ needs to take place. Please note that transferring home ownership in Ontario involves a series of legal steps. These are all governed by the Land Titles Act, Registry Act, Land Registration Reform Act, and Land Transfer Tax Act.
But, before anything else, our lawyers will conduct a title search as it helps to verify current ownership status and ensure the title is clear of issues. Further if the property has any existing mortgage attached to it, then it must be paid off before the transfer, or the new owner would be required to go through the eligibility checks with the lender so that a new mortgage can be executed.
Do you need a lawyer to transfer property in Ontario?
Yes, you need a real estate lawyer to transfer a property in Ontario. Without one, your property transfer will be deemed invalid. This has been mandated by the government so that all buyers and sellers remain protected and legally compliant.
The Canadian real estate law is complex in nature, which leaves space for errors that can cause unnecessary delays in your real estate transaction. An experienced real estate lawyer will ensure that all the required legal procedures have been met. Lawyers will also assist you in understanding your rights, so that you make informed decisions.
Therefore, if you want reduced risk of complications, then make sure to call Nanda & Associate lawyers today!
How do I transfer property to a family member tax free Ontario?
If you want to transfer your property to a family member without triggering taxes, particularly Land Transfer Tax (LTT) and capital gains tax, then you must connect with a real estate lawyer right away. This process requires careful planning and compliance to specific legal conditions.
One can only avoid land transfer tax in limited situations, and much depends on the relationship between interested parties, and the nature of the property. For example, if the property is your principal residence, you may qualify for the Principal Residence Exemption (PRE), allowing for a tax-free transfer.
However, exemptions are outlined under the Land Transfer Tax Act, and it’s crucial to fully understand them before proceeding with any transfer.
Can I gift my house to my son in Ontario?
Yes, you can gift a house to your son in Ontario. But before you do that, it is recommended that you take time to understand the tax and legal obligations involved.
Gifting a property requires the transfer to be formally documented. Therefore, you would be required to sign a Deed of Gift and visit the Land Title Office to transfer the title of the property to your son legally.
However, the transfer might still be subject to Land Transfer Tax (LTT), if there is an outstanding mortgage or other lines of debt associated with the property.
