De Krupe Law
Transfer of Title or Ownership in Ontario
When Do You Need a Transfer of Title or Ownership
Transfer of title is the process of adding or removing a person or several individuals from the ownership. This may happen when you buy a new house, so the seller needs to transfer the ownership of a property to you (the buyer). Transfers of title or ownership may also be needed in separation or divorce circumstances and between spouses or when you are giving or receiving property as a gift.
The participation of a real estate lawyer in the transfer of title process is required by law. Real estate lawyer will make sure that all the documents are signed correctly and registered in proper departments, freeing you from the burden of the details and complexities of the title transfer process. If you are looking to transfer your title in Toronto, contact us today!
Documents Required for the Property Title Transfer
In general circumstances, there is a list of documents that every homeowner should gather to complete the transfer of ownership successfully:
- Property tax bills show that there are no arrears for property taxes on the property
- Mortgage – consent from the lender
- Your ID
- One photo and one debit or credit card data (Visa, MasterCard)
When gathering the documents, be sure to contact a real estate lawyer. The lawyer will check their accuracy and tell you whether additional forms or documents are needed.
Title Ownership Transfer – In Case of Divorce
Special rules are applied if the change of the property title holder is due to the divorce. Firstly, former spouses should agree on the terms of the divorce, using negotiation methods and signing a separation agreement.
- Both parties must have lawyers representing different firms (Rules 3.4-16.7 to 3.4-16.9). In limited circumstances, a lawyer can represent both parties. Such circumstances are
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- If there are no other lawyers to which parties can address
- The transferor and the transferee are the same people
- A transfer from a person who has shared in the estate or both parties are “related persons”
- One of the parties is a government body
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- Depending on the type of ownership, interest in that property may be released by one of the spouses in return for an equalization payment or other predetermined benefit
- Parties have to agree via separation agreement or court order
Steps In Title Transfer
When you want to add a new person to your title or remove someone, you need to go through several steps to ensure that the new owner of your property or other people involved in the title transfer won’t have any issues in the future.
As soon as you complete the title of the ownership, you and your lawyer must send updated information to the condominium management office (if applicable), the property tax department and other adequate departments.
If you or the seller have a mortgage, you should advise the current mortgage lender of the title changes (get their consent in the first place). Please, also note that two separate lawyers are needed if transfers happen between two unrelated persons and are advised even if the people are related.
- Consult with your real estate lawyer on what documents are required in your case
- Gather and complete documents listed in the previous section plus any required supporting documents
- Sign them as and where needed
- Let your real estate lawyer review them to double-check their accuracy
- Submit your photo identification when the transfer documents are about to be signed
- Get the title change documents
- Stay in touch with your real estate lawyer and ask him or her about the status of your title transfer process
Fees Required to Perform the Property Title Transfer
Transferring a title can come with various fees, depending on the personal circumstances in which you are transferring the title. These fees typically include:
Types of Title Ownership in Ontario
Title ownership describes the legal rights and responsibilities that come with owning a property. This can include the right to sell, lease, transfer your title to other people or mortgage the property, as well as the responsibility to pay property taxes and maintain it.
Freehold Title
Freehold title is the most common type of title ownership in Ontario. It provides the property owner with full ownership of both the land and any buildings on the property. This means that the owner has the right to use, alter, and sell the property as they see fit, subject to any applicable laws or regulations. The owner is also responsible for all maintenance and repairs to the property, as well as paying property taxes.
Leasehold Title
Leasehold title ownership is a type of ownership where the owner holds the property for a set period of time, typically 99 years. At the end of the leasehold period, the property reverts back to the original owner unless a new lease is negotiated. Leasehold title ownership is most commonly found in commercial or industrial properties, condos, townhouses, and similar properties.
Joint Tenancy
Joint tenancy ownership is when two or more individuals jointly own a property. In this type of ownership, each owner has an equal share in the property. Any joint tenant can sever the joint tenancy unilaterally without the consent of the other. Joint tenancy title ownership also includes the right of survivorship, which means that if one owner passes away, their share of the property transfers to the surviving owner(s) without the need for probate. However, once one of the joint owners passes away, you need to register an Application of Survivorship to remove the deceased from your title.
Parcel of Tied Land (POTL)
Parcel of tied land describes an uncommon type of the ownership, where you buy a property that carries with it interest in a Common Elements Condominium (CEC). Once POTL has been joined it must be mortgaged or transferred with the property. Tied Lands usually mean surrounding areas that include golf courses, parks, marinas or shared parking spaces. Unlike “standard” condominiums, CEC has no individual units and you purchase not a unit in the Condominium Corporation, but a fraction of the corporation as a whole.
Life Estate Ownership
Life lease estate title ownership is the least common type of ownership where the property owner holds the property for the duration of their life. The property owner pays an upfront amount to purchase the right to live in the property for the rest of their life. At the end of the owner’s life, the property reverts back to the original owner or can pass to another person as stipulated.
Tenants in Common
Tenants in common is another ownership type where two or more individuals each own a separate share of the property. Unlike joint tenancy, in tenants in common shares do not have to be equal, and each owner has the right to sell and alter their part. In the event of an owner’s death, their share of the property is distributed according to their will or through probate.
Condominium Title
Condominium title is subdivided into 2 main types of ownership: freehold and leasehold.
Freehold condominiums fall into one of three corporations categories:
- Standard condominium — you buy a unit in the condo building along with an interest in the property’s common elements and assets. These two things can’t be bought separately. Before you move into your new property, make sure the condominium is registered, not to pay an “occupancy rent”;
- Common elements condominium — you buy common elements within a condominium corporation’s registered lands (e.g ski hills, roads, golf course) and pay common expenses to fund their maintenance. We described it in greater detail in the POTL section above.
- Vacant land condominium — you buy a piece of land where you can register the condominium corporation before and after structures are built. The type of these structures should be written in the condo’s declaration, thus it is crucial to read it.
When you buy a unit in a leasehold condominium, you buy an interest in the condo unit, but not the land. Consequently, a common expenses fee also includes a fee paid to the landowner. The property owners right to occupy the condo unit will be automatically terminated once the ground lease expires. It usually lasts between 40 and 99 years.
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How We Can Help
All real estate lawyers in the De Krupe Law team have exceptional experience and knowledge in transferring titles and other real estate needs. We strive to provide customized solutions to each individual case. We know what circumstances usually accompany the transfer of ownership and do our best to support you and give you the service you deserve.
Our real estate lawyer is always available for the legal consultation over the phone. If you prefer an in-person meeting, please, come visit us at any of our conveniently located offices in Toronto, Vaughan, Barrie and other locations.