Transferring real estate to another family member is done for many reasons. Perhaps a spouse wishes to add his or her spouse as a joint owner of a property owned solely by them?; or a parent wishes to gift all or part of a property to his or her child?
In any instance of a property transfer between family members, an agreement between the respective family members should be entered into. This agreement should contain the the terms upon which the transfer is occurring and be should be clear and in writing.
Where real estate is gifted to a family member, a Deed of Gift is appropriate to clearly evidence the gift.
In order to complete a transfer of property between family members, each family member shall be required to hire a Lawyer to act on their behalf. In some instances, one Lawyer may act for both parties, thereby reducing the overall cost.
In all situations of property being transferred to a family member, the parties involved should be aware, prior to completing a transfer of property, of the potential land transfer tax and capital gains tax consequences that may become payable as a result of the disposition (transferring) of the property.