Introduction: Are you buying, or are you selling?
In real estate and property ownership, the concept of a ‘transfer of title’ plays an important role.
Whether you’re buying or selling a property, understanding what a transfer of title is and does (and how it works) is crucial. In this blog, let’s explore the meaning of a ‘transfer of title’, its significance, and the steps involved in the process.
The term ‘Transfer of Title’
A transfer of title transfers ownership rights of a property from one party (the seller or grantor) to another (the buyer or grantee). This is important in real estate transactions, and it also changes your property’s ownership status. The document that records this transfer is known as the ‘deed’.
The Importance of the Transfer of Title
A properly-recognized transfer of title is essential to ensure smooth property transactions – because without a clear transfer of title, disputes over ownership, legal liabilities, and even financial losses can occur.
Verifying the title and ensuring a valid transfer will protect you (as the buyer) and even the seller’s interests.
What are the Steps Involved in a Transfer of Title?
There are a few steps that are essential in having a successful transfer of title. Let us highlight these for you:
Before the transfer of title takes place, a title search is conducted to verify the property’s ownership history and check for any potential liens, encumbrances, or claims that could affect it (i.e., your property’s title). This step ensures that you have the legal right to transfer ownership (in case you are the seller).
Drafting the Deed:
Once your title search is complete and no issues have been found, a deed is drafted – a legal document that identifies the parties involved in a transfer. It also describes the transferred property and includes any terms and conditions (or restrictions) on the transfer.
Execution and Notarization:
Both the seller and the buyer must sign the deed to acknowledge that the transfer of ownership is taking place, and then the deed is notarized to make it legally valid.
Recording the Deed:
After the final signing and notarization, the deed is recorded with the appropriate government office – as this step creates a public record of your property’s new ownership and provides you with legal protection.
Transfer Taxes and Fees:
Transfer taxes or fees may apply in a transfer of title in some regions. A buyer usually pays these, but they can vary depending on local laws and regulations. Check with your province to determine what taxes and fees apply to your transfer of title.
Title insurance may be obtained to protect the buyer and lender from any unforeseen circumstances. Title insurance safeguards your property, especially against financial losses resulting from defects in the property’s title.
The Bottom Line
A ‘transfer of title’ is fundamental in any real estate transaction, ensures an apparent change of ownership, and provides legal protection to both the buyer and seller.
Properly going through every step involved in the transfer of title is crucial for a successful and secure real estate transaction.
Whether you’re buying or selling a property, understanding the significance of the transfer of title empowers you to make informed decisions. It protects your interests in the realm of property ownership.
About Siddiqui Law Office:
At SIDDIQUI LAW OFFICE, we strive for excellence in advice, advocacy, litigation, and client service.
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