Title transfers happen more often than people think. Whether you are adding a spouse, removing an ex-partner, or transferring to a family member, the transfer must be registered in Ontario’s land registry system, and only a licensed lawyer can do that registration. Here is when you need a lawyer and what the process involves.
Common Reasons for Title Transfers
- Adding a spouse or partner to title
- Removing an ex-spouse after separation or divorce
- Transferring to children or family members
- Changing ownership shares between co-owners
- Survivorship transfers after a death
Why You Need a Lawyer
Every transfer is registered electronically through Teraview, Ontario’s land registration system, and only lawyers licensed by the Law Society of Ontario can perform that registration. Your lawyer prepares the transfer documents, confirms there are no liens or issues on title, addresses any mortgage implications with your lender, and completes the electronic registration. Mistakes can create tax consequences or leave the title unclear.
Land Transfer Tax on Spousal Transfers
Transfers between spouses or former spouses are not automatically exempt from land transfer tax. Under Ontario Regulation 696, the exemption applies only in three situations: the only consideration is the assumption of a registered mortgage, the transfer follows a written separation agreement, or the transfer is ordered by a court. Your lawyer confirms whether tax applies to your specific transfer and files the correct exemption statements.
Mortgage Implications
If there is a mortgage on the property, your lawyer coordinates with the lender. Depending on the lender’s requirements, the transfer may require the lender’s consent or a refinancing before it can close. Your lawyer makes sure the financing stays in good standing through the change.
Title transfers look simple but carry real legal and tax consequences. Get it done right the first time. Perera Law handles title transfers across the GTA. Contact us for a free quote.
