Title transfers · Family
Family transfers look simple — same address, different name on title. The legal mechanics are. The tax and PTT considerations are not. We coordinate with your accountant on the tax side and handle the legal side cleanly: the transfer, the PTT exemption (if it applies), the lender consent, and the registration.
The PTT question
The BC Property Transfer Tax framework includes a related-individual transfer exemption that can apply to certain parent-to-child transfers of a principal residence. The exemption is narrowly defined: the property has to qualify as a principal residence, the relationship has to fit the statutory definition, and the supporting documentation has to be on file.
Where the exemption applies, the savings can be substantial — on a $2 million principal residence transfer, full PTT would be roughly $36,000. Where the exemption does not apply (or applies only partially), PTT is calculated on fair market value at the standard brackets.
The Province does post-registration audits on these exemptions. We only claim the exemption where we are confident the file qualifies, and we keep the supporting documents — gift letter, residency declaration, relationship evidence — on the file in case of audit.
The tax question
Federal income tax has a separate framework. Transfers between parties who are not at arm's length — parents and children, for example — are deemed for tax purposes to occur at fair market value, regardless of what consideration actually changes hands. That can trigger capital gains tax to the transferor on any accrued gain since the property was acquired.
The principal residence exemption can shelter some or all of the gain on a property that has been the transferor's principal residence for the whole period of ownership. On rental properties, second homes, or properties with mixed use, capital gains tax is more likely to apply.
The federal tax decisions need to happen before the transfer registers, not after. We do not provide tax advice; we coordinate with your accountant and give effect to the decisions you make with them.
What we do on the file
Outright transfer, transfer with reserved life interest, transfer with money changing hands, gift. Each has different documentation and tax treatment.
We assess whether the related-individual exemption applies. If it does, we document the qualification. If it does not, we calculate PTT and confirm the number with you before closing.
If there is a mortgage on title, we obtain consent from the lender. If the child is assuming the mortgage, the lender will underwrite them; if the mortgage is being paid out, we get the payout statement and discharge.
Form A transfer, gift letter (if applicable), statutory declarations, PTT return, supporting affidavits. We prepare and you sign.
Register the transfer at the Land Title Office, remit the PTT (or claim the exemption), confirm registration to all parties, send a reporting letter with the registered title.
Frequently asked
Yes — but the exemption is narrow. The PTT related-individual transfer exemption for parent-to-child transfers requires the property to be the transferor's or the transferee's principal residence (depending on the specific exemption being claimed) and meets defined relationship and residency criteria. Not every parent-to-child transfer qualifies, and the exemption is a frequent audit target. We confirm qualification on every file before relying on it.
It depends on the property and how it has been used. Transfers between parents and children are deemed for federal tax purposes to occur at fair market value, even if no money changes hands. If the property was the transferor's principal residence for the whole period of ownership, the capital gain may be sheltered by the principal residence exemption. If the property was a rental, an investment, or a second home, capital gains tax can apply. Talk to your accountant before the transfer registers — once it is registered, the tax outcome is locked in.
The mortgage has to be assumed (with lender consent) or refinanced into the child's name. The lender will underwrite the child as if it were a new mortgage application; if the child does not qualify, the deal falls back on either keeping the parent on title (so the income supports the mortgage) or selling. We coordinate with the lender on this; getting the financing question answered before the transfer is essential.
If the transfer is a gift (no money or below-market consideration), yes. The gift letter documents that the transferor gave the property without expectation of repayment and confirms the consideration declared on the PTT return. The letter matters for both Province (PTT audit) and federal (CRA) purposes. We draft it as part of the transfer file.
Yes — but the arrangement has tax and legal consequences worth thinking through. If the parent has full use and occupation of the property despite no longer holding title, the CRA may treat the situation as a beneficial-ownership arrangement, which can affect the principal residence exemption and other tax attributes. A formal life-interest registration on title or a residency agreement can clarify the arrangement legally. These are decisions for you and your accountant; we implement what you and they decide.
The PTT related-individual exemption is narrowly defined. Parent-to-child transfers (and transfers to spouses) are the most commonly qualifying. Transfers to siblings, in-laws, nieces, nephews, or grandchildren generally do not qualify — meaning PTT is payable on the full fair market value at standard rates. Talk to us before the transfer; structure can sometimes change the outcome.
Tell us the parties, the property, and the structure you have in mind. We'll come back with a flat-fee quote, the PTT analysis, and a list of what your accountant should confirm before we register.