Adding an adult child's name property title in Nova Scotia
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Quit Claim Deed
If you are not selling to a third party for value, you are able to change the name(s) on the title to your property in Nova Scotia by executing a deed called a “Quit Claim Deed”.
This type of deed allows you to deed whatever claim you may have to a certain property to another person. Often, a property owner will deed their ownership to themselves AND another person. This makes the other person an equal owner of the property.
New Owner Does Not Sign Deed
The current owners of the property will sign the deed. The new owner does not sign the deed, although the new owner may have to sign documents regarding their residency if they are not ordinarily resident in Nova Scotia.
Joint Tenancy vs Tenants in Common
You will have to decide whether you wish to own the property with the new owner in Joint Tenancy or Tenant in Common. If you aren’t sure what those terms mean, check out our blog on the topic.
7 things to consider before Executing a Quit Claim Deed:
Is there a mortgage? Your lender needs to approve of title changes in writing.
Is it a matrimonial home – If you are legally married, in Nova Scotia your spouse has to formally consent it writing, even if they are not on the title to the property and even if you are separated (unless you have a legal Separation Agreement where they waive their rights to the Matrimonial Home).
Your estate and property generally - once added to title a person becomes an owner - just like you - and you can’t remove them from title without their consent in writing. You are also only able to gift your portion of the property in your Will.
Deed transfer tax implications – if you are adding someone who does not live in Nova Scotia, even if it is a $0 gift transfer, they may be liable to pay the 10% non-resident transfer tax (based on the assessed value of their “share”).
There may also be capital gains tax implications of gifted transfers if the Property you are deeding is not your principal residence. (cottage properties for instance, or vacant land). We recommend you consult with a tax professional to understand the tax implications prior to making any gifts of property.
If you are adding anyone who is not your spouse to the title to the property, it is advisable to have an agreement in place for splitting expenses etc.
Consider who can determine when and for how much the property can be sold, as well as how the proceeds will be divided ahead of time so you do not have issues down the line.
Changing ownership to your property is a big deal with serious consequences. We always recommend you speak to your trusted professionals before making such a move. For more information, you can also read our blog on changing ownership to property in Nova Scotia.
If you have any questions about Quit Claim Deeds you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us
By: Briana C. O’Grady J.D - Lawyer
The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers
