There can be various situations in life – sometimes, we need to remove name from property title Ontario. Here is the ultimate guide on how to do that
According to the rules in force, all the property owners should be listed in the documents relating to that property. However, life is unpredictable, and in some cases, the property owners may need to remove name from property title in Ontario. To put these plans into action, certain steps need to be taken: You will need to fill out a special form and provide the required documents. Let us delve a little deeper into the matter and Canadian law and the required steps to be taken to achieve positive results.
1. First step – find a reason to make changes
To begin with, not all reasons can be considered so serious as to strike the person from the documents. The list of reasons to remove a name from property title in Ontario allowed by-law includes the following:
- Dispute between co-owners of the property. When there are many property owners, if there is a dispute or disagreement, someone may want to make certain changes in the documents and remove someone or even themselves from the documents.
- Divorce. This seems to be one of the most popular reasons for property division – one of the most difficult issues, in this case, is agreeing on the terms for property division. One of the most common options is to sell the joint property and split the proceeds between both spouses. The other popular way is for one of the spouses to purchase the other’s interest in the home. The kicker here is that the person who wants to buy all the shares and become the sole owner of the house would be required to take out a mortgage (if any) on himself. He would have to pay off the existing mortgage by refinancing or taking out a new loan. Having received his money from the interest sold, the other spouse would get out of the deal and have nothing to do with a new mortgage.
- Death of the possessor of the property. One of the saddest matters in the conveyance of real estate. When the person dies, his property must be divided between his immediate family, either by his will or by law (if there is no will).
Note that in all other cases, changing the list of names may not produce a positive result.
2. Acknowledge who is the possessor of the property
In some cases, the question of who owns the property is very important. For example, when the property owner dies, and it is not clear who the heir is. The most difficult situation is when the deceased person had children from different marriages and did not leave a will. In some cases, disputes may arise between the heirs if one claims that he did not know about the sale of the property, which was made behind his back.
There are situations where the property has been vacant for years, and it is completely unclear whether it belongs to anyone. There may be aspirants who want to buy that empty property, and in that case, it is necessary to clear the title.
3. Prepare a legal act (to remove a name from property title in Ontario)
There are several well-known methods to remove someone’s name from a property deed. Here is a description of the two most commonly used legal acts in Ontario.
This service allows making a transfer of rights for the property from one person to another. The kicker is that this service does not guarantee that the property belongs only to the new owner. It is not the job of the service staff to verify the ownership of a property. They simply handle the transfer of rights.
This type of legal action is most commonly used by ex-spouses dividing their property after a divorce or when a family member wishes to give the property to a relative.
It is said that this kind of deed is more beneficial to the sellers because, by law, they cannot be sued by a person who has obtained rights to the property or their family members. In contrast, using this method is risky for buyers, as they do not receive a written guarantee that they are the only possible owners of the property.
Incidentally, this type of legal transaction was very common in the past. In the years of the California Gold Rush, people were anxious to claim the land as quickly as possible, so such an instrument as a quitclaim was in great demand during those years.
This type of document provides a person with legal proof that the buyer will become the sole owner of the property. It is the job of the service’s staff to verify the ownership of a property and ensure that there are no outstanding credits or liens on the residence.
This type of service is typically used by independent sellers and buyers who are not connected by family ties. Warranty deeds serve as a guarantee that buyers are protected in all matters of the title – those who sign this type of document can be sure that they are protected from potential future disputes over ownership.
4. Do the required paperwork
The removal of a person from a title deed is not a simple operation. At least it requires a large amount of paperwork to be done.
It should also be noted that the documents prepared are not simple friendship treaties but serious documents that must be notarized and authenticated. Also, the termination of the signed document is not simple – it can be canceled only under serious circumstances by a court decision.
Steps that you should take to remove a name from the deed
- Discuss the situation with other owners or heirs. Make arrangements with them. If there is no dispute, go to step two.
- Gather the required documents – Title Deed, Quitclaim Deed or Warranty Deed form, Land Transfer Form.
- Fill in the required forms with your personal details
- Submit to the land registry office.
Frequently asked questions
- What kinds of property rights are legalized?
Under the law, there are five types of private property rights:
- Sole ownership. Only one person can own the real estate.
- Joint ownership. Two people can have title to the same property. Most commonly, this type of ownership document is signed between married people.
- Tenancy entirely. This type of ownership requires that each of the spouses have an undivided share in the property. If one of them dies, the second inherits his or her share.
- Tenants in common. This document is usually signed by two unrelated people who are likely to live in the same place. They may have equal shares in the property or different ones – depending on the agreement between them. When one of them dies, the rights to the property pass to his or her heirs.
- Rights of survivorship. In this case, two or more people are considered to have life ownership rights to the same property. When one of the owners dies, the ownership rights pass to the other living owners.
2. Would the person dropped from the title escape the need to pay for a mortgage?
One of the most frequently asked questions is whether the person who struck off the title deed would be relieved of a mortgage. Unfortunately, this is not the case. The mortgage and the deed are completely different types of signed documents. If you are encumbered with a mortgage in your name, you cannot avoid making payments on the loan by signing any type of deed.
If the person assigning their rights to the property wishes to terminate their loan obligations, a special document should be signed confirming that the remaining owners have refinanced the mortgage. The remaining owners would need to take out a new loan to pay off the previous one and sign new mortgage papers that do not mention the person assigning their rights. If there is no way to take out a new loan, the only option is to sell the property and pay off the remaining debt.
3. Is it possible to remove a person’s name from a title deed by force?
Removing a person’s name from a title deed without their consent can only be done with the help of lawyers.
4. What steps should be taken in case of the death of the property?
Accordingly, one of the most difficult situations that usually occurs is the death of the owner. This is not a simple case and may require additional steps to remove his name from a deed.
The first step that should be taken is to divide his property among his heirs. In this situation, having a will is not eligible. If you have it or not, you need to gather the documents required by law. You must submit the following documents to the land registry of your place of residence: the death certificate, the notarial statement, and the new title deed.
If all the property owners have died and you are the heir (according to the will or court decision), you will need to make certain changes to the title deed. First, you must check to see if your decedent did not sign the joint ownership agreement. If this is the case, you will need to create a new deed and replace the old one. The new deed must be signed in the presence of a notary.
5. Can the signed quitclaim deed be canceled?
A judge can only approve the cancellation of the Quitclaim Deed in court. The accepted grounds for canceling the agreement are proof of fraud or that it was signed under duress.
6. Is it expensive to exclude a person from a title deed?
The cost of removing your name from a property title in Ontario depends on the price of the lawyer’s services and where you live. The median price for this type of service is $400.
The Bottom Line
Removing a person from a title deed is not a simple operation and requires grave reasons to be admissible. The grounds which are considered valid are divorce, death, or a serious dispute between relatives. Since the procedure is complex, certain steps need to be followed, without which your property rights cannot be recognized.