The owners of a property must be listed on all deeds relating to the property, but in some cases, those names need to be removed, and the process is not always as simple as it may sound. Whether it’s the result of a divorce, death or other significant life change, you’ll need to move through the legal process and fill out all the necessary forms to ensure the desired changes are made properly.
Removing A Name From Title Deed
When it comes to the process of removing a name from the title of a property, there are two different deeds to consider:
Quitclaim Deed
A quitclaim deed essentially means you’re “quitting” or surrendering your rights to the property in question and involves transferring any ownership interest that the seller has in the property, without making any guarantees. This means there could be liens or other issues that are unknown so the process can be a bit risky as there’s no exchange of money, which equates to very little protection for the buyer. Due to the risk factor, these types of deeds are typically used to transfer property among spouses, clear up any title issues or gift the home to someone. It’s important to note that should an issue with the deed arise in the future, sellers are protected from being sued by any family members or ex-spouses.
Warranty Deed
This type of deed stipulates that the seller has the right to transfer the property and that no one else owns it. Unlike the quitclaim, it offers legal assurance to buyers that there are no debts or liens on the property and promises that the seller is the rightful owner and the title is in good standing. As a result of this level of protection, warranty deeds are typically used for real estate deals or between buyers and sellers who are acting independently without any influence on one party from the other.
Process Of Removing Name From Title Deed
These are a few reasons why you may be trying to remove someone’s name from a property deed and the process typically takes a few weeks to complete. The cost associated with this process will depend on how much your lawyer charges you and where you live in Canada. It’s likely that you could pay anywhere from $350 – $500 or more to complete this process so be sure to budget accordingly.
To legally remove a name from a mortgage in Canada, you must get the permission of the other mortgage holder and your mortgage lender. Your options may include refinancing your existing mortgage to buy out the party whose name is being removed from the mortgage. Understanding the overall process and how it works will give you a better idea of how to move forward depending on your personal situation:
Decide Who Needs To Be Removed From The Title
The very first step of this process may seem simple, but it’s crucial. When you apply for a joint mortgage, lenders look at the credit scores of all applicants to determine whether they are creditworthy. If approved, all borrowers are 100% responsible for the debt, which means that if one person is unable to pay for the loan, the other party is required to pay the full amount. When lenders remove a name from a joint mortgage, the risks go up if one party is left to pay off the mortgage so if you aren’t sure who to remove or how to move forward, consider that leaving the person in the best financial position is the wisest choice, if it’s possible. If you’re looking to forcefully remove someone’s name off of a deed, you’ll need to hire a lawyer and take legal action.
Be sure to speak to other co-owners about your intentions so you can attempt to come to an agreement about who will be removed from the title. If that person winds up being you, make sure you understand your share of the property and who you’ll be transferring it to.
Obtain Copy Of The Deed
Getting a copy of the deed will help you clarify who is listed on the title so you can determine who can be removed.
Gather Documentation
When removing a person from a mortgage, you’ll be required to provide some documentation as part of the process. Make sure you have the following before proceeding forward:
– Title deed
– Land transfer form
– A quitclaim or warranty deed form
Complete Forms To Transfer Ownership
As you move forward and prepare to fill out the necessary forms, there are certain pieces of information you’ll need to ensure everything goes smoothly:
– Name of the person transferring ownership and the person whom ownership is being transferred to
– Property address
– Date of the transfer
– Location where the deed is being signed
– Document number from the land title office where the prior deed was filed
– Reason for the transfer
– What the grantor will be receiving from the transfer
– Pertinent financial and tax information, such as the legal description of the property
– Type form of ownership
Special Cases To Be Removed From Property Deed
Not all situations are black and white when it comes to removing a name off a mortgage. In some special cases, additional information and steps will be required in order to remove the person’s name, especially if they’ve died. Regardless of whether the person had a will, you’ll have to submit specific documents to the land registry office in your province as the surviving owner. These documents include the following:
Death Certificate
You are required to provide proof that the person who owned the property has actually passed away and a death certificate can help with that.
Notarized Affidavit
This is a sworn statement that the courts will use to confirm the previous owner’s death and your new ownership.
New Property Deed
You’ll be required to sign and notarize the new deed and so will any other owners on the title.
If all owners on the title have died, the process requires some extra steps. If you’ve been named an owner through the deceased’s will or via court decision, the property deed will need to be modified to reflect this. It’s important to carefully review the property deed to make sure that the property wasn’t jointly owned when the owners died. If it wasn’t, then you’ll need to create a new deed to reflect the changes.
When it comes to transferring ownership of property after someone has passed away, there’s a chance that an executor could be involved. This is an individual who receives the estate of a deceased person and is responsible for administering and distributing the estate according to the will or the courts. An executor’s deed will need to include the names of the previous owners, confirmation that the will has gone through probate, and proof that the executor is authorized to transfer the deed.
Conclusion
While removing a person’s name from a mortgage can be a bit complicated, it’s not impossible. When approached from a place of understanding, it can be a lot easier to tackle than you might think. Regardless of your reasons, you may want to consult a professional should there be a concern about things getting too complex or messy based on your personal situation. If you’re interested in learning more about mortgages, property titles and more, reach out to our team for guidance.