Personal Finance

Dad wants to transfer house title to my name

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  • Jul 7th, 2013 5:10 pm
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Member
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Aug 27, 2011
391 posts
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Edmonton

Dad wants to transfer house title to my name

Hey everyone,
My dad wants to transfer the house ownership to me. What is the procedure? Who should i contact? House is fully paid. How much would it cost me for all this? House is located in Alberta. Looking forward to replies.

Thanks
21 replies
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Jan 12, 2011
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Toronto
GanJa786 wrote: Hey everyone,
My dad wants to transfer the house ownership to me. What is the procedure? Who should i contact? House is fully paid. How much would it cost me for all this? House is located in Alberta. Looking forward to replies.

Thanks

contact a Real Estate lawyer to have it completed. You may need to seek ILA (Independent Legal Advise) also. Speak to the lawyer and they will guide you.
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Member
Jan 21, 2013
421 posts
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Halifax
Can't they just registry deed in kid's name? Long as it is a warranty deed
Sr. Member
Jul 18, 2009
679 posts
103 upvotes
Why does he want to transfer it? Estate planning? Creditor protection? If it's for estate planning, is death imminent? have you and he considered capital gains vs. probate savings if he lives another 10, 20, or 30 years? If it's creditor protection, be aware that depending on timing, it could be seen as a fraudulent conveyance. A house is a major asset, its worth getting expert advise to make sure what you are doing will meet your objectives.

Do you live in the house? If not, when/if you sell it, there will be capital gains from the time of the transfer onward. Get an appraisal before tranferring it, so that you have a cost basis. If you want to buy your own house some day, would you want to use any first time home buyer programs - if so, owning your Dad's house may disqualify you.

What if you experience credit or marriage problems. If you own the house, its your property - making it subject to any credit problems you may have, and making it dividable property in a divorce. Are you married? Do you have a marriage contract? if you aren't, will you get a prenup to protect your Dad's house if you get married in the future?

Your dad and you both need to get good legal advice to ensure that this transaction accomplishes your goals without too many downsides. There may be other options, such as a trust, that your dad hasn't considered.
Deal Addict
Sep 30, 2008
1277 posts
311 upvotes
Ask you dad to contacct a real estate lawyer for the house title transfer.

I assume that you are an adult, and the house is your dad's principal residence which is tax free to him for transfer. If that house is a rental property, there will be tax implications, which require him to sell at fair mkt value to you. If he just transfers the house without getting any money from u, he is deemed to have sold u at fair mkt value, while u are stuck with a zero cost base, which is bad.
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Feb 15, 2008
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Go to an Alberta Registry, or Land Titles (I've used the one in downtown Edmonton in the government building a couple blocks away from Chinatown, and there's a nice Chinese lady who will explain everything to you). Get the forms. Fill them out, have them sworn before a notary/solicitor, bring them back with the fee, and its done.

Of course whether its a good idea is something that you should think long and hard about, especially in light of some of the comments as offered above.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Aug 27, 2011
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Edmonton
Hey everyone thx for replying.

To answer some of the above questions:

- No I am not married.
- I am currently living in the house with my family but my dad isnt living with me right now. As hes working in another province. So does he have to be present?
- I dont understand how it could hurt us financially? Its just a transfer of the house ownership.
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Feb 15, 2008
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GanJa786 wrote: Hey everyone thx for replying.

To answer some of the above questions:

- No I am not married.
- I am currently living in the house with my family but my dad isnt living with me right now. As hes working in another province. So does he have to be present?
Generally, yes, the Dower Act in Alberta requires that if a house is owned by married people, that the spouse not involved with the sale receives independant legal advice on the sale. The Registry requires a sworn affidavit to such effect. Generally he would have to have the sale document notarized before a Commissioner of Oaths and/or Notary acceptable to Alberta.

So practically speaking, it could be quite a challenge.

- I dont understand how it could hurt us financially? Its just a transfer of the house ownership.
There are tax implications as other posters have stated if the house was not a principal residence. In addition to the loss of first-time home buyers credits, etc., that you will not be able to access.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Mark77 wrote: Generally, yes, the Dower Act in Alberta requires that if a house is owned by married people, that the spouse not involved with the sale receives independant legal advice on the sale. The Registry requires a sworn affidavit to such effect. Generally he would have to have the sale document notarized before a Commissioner of Oaths and/or Notary acceptable to Alberta.

So practically speaking, it could be quite a challenge.




There are tax implications as other posters have stated if the house was not a principal residence. In addition to the loss of first-time home buyers credits, etc., that you will not be able to access.
Sorry just to clarify. House is both under my dads and moms name.

Also what you mean by principal residence? They are the second owner of this house.
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GanJa786 wrote: Sorry just to clarify. House is both under my dads and moms name.
Well in my non-legal opinion view, there'd be an obligation for your mother to obtain independant legal advice with respect to the Dower Act, prior to a transfer, and file an affidavit relating to such with the application for a transfer.

Go talk to someone in Alberta with experience doing this. This is beyond what you can DIY.

The 'point' of the Dower Act was to prevent husbands from selling the farm and depriving the wives of the matrimonial property to which they are legally entitled.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Sep 22, 2008
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Mark77 wrote: Generally, yes, the Dower Act in Alberta requires that if a house is owned by married people, that the spouse not involved with the sale receives independant legal advice on the sale. The Registry requires a sworn affidavit to such effect. Generally he would have to have the sale document notarized before a Commissioner of Oaths and/or Notary acceptable to Alberta.

So practically speaking, it could be quite a challenge.




There are tax implications as other posters have stated if the house was not a principal residence. In addition to the loss of first-time home buyers credits, etc., that you will not be able to access.
some people are not willing to loose this.
Selling a new never installed or used Edelbrock turbo kit #1500, but lowballers and buyers offering ridiculous 500 bucks for it.http://forums.redflagdeals.com/new-edel ... s-1151134/So now it is installed and in my civic :)
Sr. Member
Jul 18, 2009
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LOL... just a house... only the largest asset most people will ever own!
Deal Addict
Sep 30, 2008
1277 posts
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GanJa786 wrote: Sorry just to clarify. House is both under my dads and moms name.

Also what you mean by principal residence? They are the second owner of this house.
If your father lives in another provinces and owns another principal residence, his residence u are living cannot be his principal residence for tax free transfer to you.

The principal residence exemption in the cdn tax act eliminate or reduce (for income tax purposes) a capital gain on the disposition of a taxpayer’s principal residence.

In order for a property to qualify for designation as the taxpayer’s principal residence, he or she must own the property. Joint ownership with another person qualifies for this purpose.

The housing unit representing the taxpayer’s principal residence generally must be inhabited by the taxpayer or by his or her spouse or common–law partner, former spouse or common–law partner, or child. A taxpayer can designate only one property as his or her principal residence for a particular taxation year. Furthermore, for a taxation year that is after the 1981 year, only one property per family unit can be designated as a principal residence.
Deal Guru
May 9, 2007
14883 posts
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Nanaimo, BC
Owning real estate is not just owning an asset. It is also taking on liabilities. I am not suggesting there is anything improper, but before taking on such responsibility I would research it just as I would research a real estate purchase. There was a recent RFD thread regarding a home owner who was assessed thousands of dollars in costs after human remains were found on the property and it was determined it was an archeological gravesite. Others acquire real estate and later discover they have significant costs associated with environmental clean up. Geotechnical costs associated with ensuring one's property does not cause damage to other's property is a risk. If the home requires a new heat pump ($10,000) or new septic system to meet current code requirements are you financially able to sustain these?

Geese, the more I enumerate these, the queasiness I get about our own real estate holdings. :)
Deal Fanatic
Jul 3, 2011
6517 posts
3798 upvotes
Thornhill
Most excellent response here:
starchyk wrote: Why does he want to transfer it? Estate planning? Creditor protection? If it's for estate planning, is death imminent? have you and he considered capital gains vs. probate savings if he lives another 10, 20, or 30 years? If it's creditor protection, be aware that depending on timing, it could be seen as a fraudulent conveyance. A house is a major asset, its worth getting expert advise to make sure what you are doing will meet your objectives.

Do you live in the house? If not, when/if you sell it, there will be capital gains from the time of the transfer onward. Get an appraisal before tranferring it, so that you have a cost basis. If you want to buy your own house some day, would you want to use any first time home buyer programs - if so, owning your Dad's house may disqualify you.

What if you experience credit or marriage problems. If you own the house, its your property - making it subject to any credit problems you may have, and making it dividable property in a divorce. Are you married? Do you have a marriage contract? if you aren't, will you get a prenup to protect your Dad's house if you get married in the future?

Your dad and you both need to get good legal advice to ensure that this transaction accomplishes your goals without too many downsides. There may be other options, such as a trust, that your dad hasn't considered.
On top of which is Dad transfering just his share or is Mom also transfering her's. If not then the matter of type of title held with mom has to be determined.
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Aug 27, 2011
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Mark77 wrote: Yup, those are the forms. Good luck filling them out correctly!
r u being sarcastic?
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Aug 27, 2011
391 posts
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Edmonton
jedi1648 wrote: If your father lives in another provinces and owns another principal residence, his residence u are living cannot be his principal residence for tax free transfer to you.

The principal residence exemption in the cdn tax act eliminate or reduce (for income tax purposes) a capital gain on the disposition of a taxpayer’s principal residence.

In order for a property to qualify for designation as the taxpayer’s principal residence, he or she must own the property. Joint ownership with another person qualifies for this purpose.

The housing unit representing the taxpayer’s principal residence generally must be inhabited by the taxpayer or by his or her spouse or common–law partner, former spouse or common–law partner, or child. A taxpayer can designate only one property as his or her principal residence for a particular taxation year. Furthermore, for a taxation year that is after the 1981 year, only one property per family unit can be designated as a principal residence.
Yes this is his only property?
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Apr 20, 2011
7747 posts
2750 upvotes
ON
Mark77 wrote: There are tax implications as other posters have stated if the house was not a principal residence. In addition to the loss of first-time home buyers credits, etc., that you will not be able to access.
packardbell wrote: some people are not willing to loose this.
It's only $750... unless AB has some provincial perks on top of the federal...
Having a family deal (no extra lawyers, RE agents, etc) more than makes up for $750.

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