How do I add or remove someone from title to my home in British Columbia?
This answer covers the law of British Columbia.
You add or remove someone from title by registering a transfer of an interest in the home, and that transfer may trigger property transfer tax. Registered owners may make a direct transfer to one or more of their number, alone or jointly with another. If you add a co-owner, how you hold title matters: owners are tenants in common unless the transfer shows a contrary intention, and unstated shares are presumed equal.
A principal residence exemption may apply if the person is a related individual, such as a spouse, child or parent, is a Canadian citizen or permanent resident, and the home was a principal residence for a continuous period of at least six months immediately before the transfer. Siblings are not on the related-individual list. When you add someone, the exemption is claimed only on the part of the interest coming from related individuals.
Federal tax can apply, because a gift of capital property is treated as a sale at fair market value, although a gift to a spouse or common-law partner generally has no capital gain or loss. Check your mortgage terms for lender consent, and confirm details with a lawyer or accountant before you sign.
Key takeaways
- Registered owners may make a direct transfer to one or more of their number, alone or jointly with another.
- If the shares of tenants in common are not stated, they are presumed to be equal, so unequal shares only work if they are stated.
- A transfer to a spouse or former spouse under a written separation agreement or a Family Law Act court order is claimed with exemption code 15.
- After a divorce, remaining related owners who acquire the former owner's share can each claim a full exemption on their increase in interest.