Transferring real estate to your loved ones may seem daunting, but understanding how to transfer property title to family member in Ontario can give you peace of mind and set your family up for long-term success. Whether you’re planning to gift your home, add a child’s name, or manage an estate, this in-depth guide covers the full process—legal steps, tax implications, actionable tips, and practical examples—tailored for Ontario homeowners and families.
Understanding Property Title Transfers in Ontario
Knowing the basics makes how to transfer property title to family member in Ontario far less intimidating. Let’s break down the essentials:
What is a Property Title Transfer?
A property title transfer is the legal process that changes ownership of real estate from one party to another. In Ontario, this process is managed by a real estate lawyer who ensures all documents are correct and submits the new ownership information to the Ontario Land Registry Office.
Common Types of Ownership
Ontario recognizes several ways family members can own property together:
- Sole Ownership: One individual holds the full title.
- Joint Tenancy: Owners hold equal shares; when one passes away, their share automatically passes to the survivor(s) (right of survivorship).
- Tenants in Common: Owners can hold unequal shares; ownership passes to the estate, not the surviving owner, unless otherwise designated.
Each ownership structure has different implications for taxes, inheritance, and control.
Step-by-Step: How to Transfer Property Title to Family Member in Ontario
Let’s walk through the exact steps you’ll take for a smooth, successful property title transfer.
Step 1: Hire a Real Estate Lawyer
In Ontario, only a licensed real estate lawyer is authorized to prepare and file the paperwork for your title transfer. A lawyer will:
- Review current ownership and title status.
- Advise which transfer method and form of ownership best suit your goals.
- Calculate tax responsibilities and check for exemptions.
Step 2: Title Search and Due Diligence
Before any transfer, your lawyer will conduct a title search to ensure:
- There are no outstanding liens, mortgages, or legal claims against the property.
- The chain of ownership is clear.
- No restrictions or encumbrances exist that would block the transfer.
This step protects both the giver and the recipient.
Step 3: Prepare and Sign Transfer Documents
Core documents include:
- Transfer/Deed of Land: The main form used to change ownership.
- Statement of Adjustments: Covers any final costs (taxes/utilities) between parties.
- Affidavits: For certain types of transfers, including “gift for natural love and affection” clauses.
- Land Transfer Tax Affidavit: Used to claim your exemption if applicable.
Practical Tip: Keep all original copies and sign with your lawyer present to avoid errors.
Step 4: Register the Transfer
The lawyer will electronically submit the Transfer/Deed of Land to the Land Registry Office, updating the province’s official ownership records. Registration fees generally range from $100-200, plus your legal costs.
Best Practice: Always confirm the title has properly updated by checking the new land title after registration.
Step 5: Update Mortgage and Insurance
If the property carries a mortgage:
- Lender Approval: You must get your mortgage lender’s written consent to add, remove, or change titleholders.
- Insurance: Update your home insurance policy to include the new owner(s) or remove any no-longer-involved persons.
Failing to update your lender or insurer can lead to insurance denials or even technical default.
Tax and Legal Considerations in Transferring Property Title
Understanding the tax effects of how to transfer property title to family member in Ontario is just as important as navigating the paperwork.
Land Transfer Tax and Exemptions
Ontario usually charges Land Transfer Tax (LTT) on property transfers based on the value received (the “consideration”). However, key exemptions apply when transferring to family:
- Gifts Between Family Members: If property is gifted and no money changes hands, noting a consideration of “nil” can avoid LTT for the recipient.
- Mortgage Assumptions: If the recipient assumes a mortgage, LTT is payable on the remaining mortgage amount.
- Farming Family Members: Farmland transfers between eligible family members can also be exempt from LTT under specific conditions.
Crucial: If you’re gifting property, consult your lawyer and accountant to ensure you qualify and document it correctly.
Capital Gains and Other Tax Consequences
- Principal Residence Exemption: If the property was your principal residence the entire time, there’s generally no capital gains tax. If it’s a cottage, rental, or was not always your primary home, capital gains tax could apply based on the increase in value since purchase.
- Future Capital Gains: The new owner inherits your adjusted cost base; when they sell, they may owe capital gains tax on subsequent appreciation.
Legal Responsibilities and Section 160
Section 160 of Canada’s Income Tax Act means both giver and recipient can be liable for unpaid taxes associated with the transferred property (e.g., if CRA claims unpaid taxes before or at the time of transfer). Seek professional help to avoid unpleasant surprises, especially for larger estates or complex tax histories.
Practical Examples: Family Title Transfer Scenarios
Gifting a Principal Residence to an Adult Child
Jane owns a Toronto home she’s lived in since 2001. She wants to transfer the property as a gift to her daughter, Emily.
- Process: Jane’s lawyer prepares a Transfer/Deed of Land, noting “natural love and affection.” No Land Transfer Tax or capital gains, as it’s always been Jane’s principal residence.
- Follow-up: Emily becomes official owner and, if she lives there, continues to claim the principal residence exemption.
Adding a Family Member to an Existing Title
Mina wants to add her son, Arjun, to her Mississauga home so they can share ownership.
- Process: Her lawyer adds Arjun as a joint tenant.
- Lender Consent: The mortgage company approves the title change.
- Insurance: Home policy is updated to cover both owners.
- Result: Mina and Arjun share full rights, and the home would pass directly to the survivor.
Family Transfers When a Parent Passes Away
A father and son own an Ottawa property as joint tenants. When the father passes away, his share automatically transfers to the son via a survivorship application, with no probate or LTT due. If owned as tenants in common, the share would go to the father’s estate, requiring probate.
Actionable Advice and Tips for a Smooth Family Title Transfer
- Always Work with a Real Estate Lawyer: Their expertise ensures correct paperwork, compliance, and a clear title every time.
- Consult an Accountant on Taxes: Even if you won’t pay LTT, capital gains and other taxes could apply.
- Prepare All Documentation in Advance: Gather mortgage info, past title deeds, and proof of payment for taxes and utilities.
- Communicate with Lenders and Insurers Early: Avoid rejection or delays by looping in the mortgage company and home insurer ASAP.
- Understand Joint Ownership Consequences: Joint tenancy and tenancy in common have different effects on inheritance and ownership rights—choose wisely.
- Keep Organized Records: Retain copies of deeds, forms, and correspondence for your files and future reference.
- Plan Ahead for Multiple Family Members: Adding or removing people in the future is possible, but each title change requires full legal process and fees.
Frequently Asked Questions (FAQ)
Q1: Can I transfer my house to my child for free?
Yes, you can gift property to family in Ontario with proper documentation and legal assistance, typically without triggering land transfer tax unless a mortgage is assumed or if it’s not fully your principal residence.
Q2: What if there’s a mortgage on the property?
Your lender must approve the title change, and the new titleholder(s) may need to qualify for the mortgage on their own. LTT applies to the amount of the mortgage transferred.
Q3: Is probate required for title transfers after death?
If ownership was joint tenancy, a survivorship application handles automatic transfer. For other situations, like tenants in common or sole ownership, probate is usually required.
Q4: Does the new owner pay tax when they sell the home later?
Yes, capital gains tax may apply on future gains if the home is not their principal residence.
Conclusion
Understanding how to transfer property title to family member in Ontario gives you the knowledge and confidence to manage family real estate transitions legally and efficiently. With a real estate lawyer, clear planning, attention to tax details, and open communication, most families can complete these transfers smoothly, avoiding unexpected pitfalls.
Take charge of your family’s financial future and legacy—learn the rules, get expert help when needed, and always document each step for lasting peace of mind.
This guide reflects Ontario laws and professional best practices as of July 2025. Always consult up-to-date legal and tax experts for your unique situation.
