Before you take possession of your newly purchased property, there are a few legalities you need to be aware of. One of those is the title transfer, wherein the seller transfers ownership of the property to the buyer. When it comes to adding names to a house title in Ontario, you must work with a lawyer for title transfers. At Excel Closing Centre, we can help make the transition as smooth as possible and guide you through the title transfer process every step of the way.

 

What is the title of the house?

 

The term “title” refers to the person who has legal ownership and the right to use a property. The title can be one person or more, such as fellow investors (ie. parents), a spouse, or partnerships and corporations. The legal title can be applied to anything, but in most cases, it refers to a piece of real estate or an automobile. This is because these purchases are substantial and can have complicated ownership agreements.

 

What is transfer of a title?

 

A title transfer is defined as the process in which a seller and buyer change the ownership title of a property. This happens at the end of a purchase agreement, and after the consideration of value has been exchanged. A transfer of title is also needed when a person wants to refinance their property, if there have been family issues such as separations, or if there is a transfer between family, friends, or business partners. Common scenarios for a title transfer include adding a spouse to the property title, adding a child to title of home, or removing a name from property title (in the case of a death).

 

TYPES OF TITLE

 

Freehold Ownership

An example of freehold ownership is a detached home that you’ve purchased. This type of title means you own the property (land and structure), as well as the right to live in it as long as you make the payments you’ve agreed with the lender. The downside of this type of title is that compared to leasehold ownership, it is significantly higher in price. However, freehold ownership appreciates over time, and your ownership of the land and structure gives you complete control of when you choose to sell.

 

Leasehold Ownership

In this type of title, you can purchase the physical structure (condo, townhouse, house), while leasing the land from another party. The landlord may be the government or First Nations groups. Leases for leasehold ownerships are often 99 years in length, and although it may not concern the person purchasing at the beginning of the lease, it can provide more of a risk to those owning it near the end of a lease. When the lease has ended, the landlord can choose not to renew it, or can do so at a higher price. Leasehold ownership can be challenging to finance, and don’t appreciate over time.

 

Life Estate Ownership

A life estate ownership is when a buyer has legal ownership and use of a property for the rest of their life. In legal terms, the ownership ends when the buyer has died. At this point, the property goes back to its original owner, or may pass on to another person. The owner of such an estate is known as a “life tenant.” This is not a very common type of ownership.

 

OUR LAND TRANSFER PROCESS

 

When transferring title, a conveyancing lawyer has to ensure they performed appropriate title searches, obtained title insurance, advised current mortgage lender of any title changes and directed their client to obtain legal advice for tax and estate questions. Moreover, transfer of title requires an exchange of important documentation including but not limited to ownership documents, property tax bills, bank statements, and property insurance. All the signees need to provide photo identification before signing the transfer documents. In most cases, two lawyers are required to complete a Title Transfer.

 

When buying real estate, at the closing of the transaction, a title transfer is completed to legally transfer ownership from the seller to the buyer. Other scenarios where a title transfer may also be required include: when a person wants to refinance their property and the financial institution request that a person be added or removed from title to qualify for a mortgage; if there has been a separation between the parties who own the property; and/or if a property owner wants to add a spouse or other family member to title or remove a name from title for estate planning purposes.

 

At Excel Closing Centre, we ensure your title transfer is handled in a professional and timely manner. Our firm can generally have all documents prepared and signed within a couple of days. However, the actual registration process of the land transfer may take up to week to complete.