Notary for Transfer, donation, exchange and other transfers in Sherbrooke and Magog
Not every real estate transaction is a classic sale. Do you want to transfer your cottage to your children? Add your spouse to the title? Assign your share of a family property to your brother? Exchange a lot with a neighbour? Each of these situations requires a tailored notarial deed and careful thought about the tax and legal consequences.
At CBNotaire, we regularly prepare these "non-traditional" transfer deeds for our clients in Magog, Sherbrooke, and throughout Estrie. Our priority: your transfer achieves its goal without creating an unpleasant tax or legal surprise down the road.
Types of transfers we prepare
Cession
The transfer of a property right (or a share) to another person, with or without consideration. Cessions are common between undivided co-owners, in family restructurings, or in separations where one spouse buys out the other's share.
Donation (Gift)
The transfer of an asset for no consideration. An inter vivos gift (during your lifetime) may be to a child, grandchild, spouse, or charity. Caution: gifts carry significant tax consequences that must be assessed before signing.
Exchange
The reciprocal transfer of two properties between two parties, each conveying their property as consideration for the other's. Common to adjust lot boundaries, settle an encroachment, or reconfigure a family subdivision.
Transfer between spouses
Adding or removing a spouse from the property title, with different consequences depending on your matrimonial regime, parental union status, and whether the property is mortgaged.
Buyout of a share from an estate
One of the heirs buys out the others' share to become sole owner of an inherited property. We prepare a deed of cession following the declaration of transmission.
The tax considerations to understand
The vast majority of transfers between related persons (family, spouse, related corporation) are presumed by tax law to have occurred at fair market value, regardless of the price recorded in the deed. This means:
-
A gift to your child may trigger a taxable capital gain for you
-
Selling to a child for $1 does not eliminate capital gains tax
-
A properly structured tax rollover can defer this gain, but requires careful planning
-
The welcome tax applies to most of these transfers (with certain exceptions for direct-line and spousal transfers)
We strongly recommend consulting a tax specialist or accountant before any significant transfer. We regularly work with tax advisors and can refer one if you don't already have one.
FAQ: Sales and Transfers
Can I give my house to my children tax-free?
Your children will not pay tax as donees — the property is received gratuitously. However, as donor, you are deemed to have sold the property at its fair market value. If the property is not your principal residence (e.g., a cottage), you may owe capital gains tax. Prior planning with a tax specialist is essential.
Is there a welcome tax on a gift or cession between parents and children?
Direct-line transfers (parent to child, grandparent to grandchild) are exempt from the welcome tax under the Act respecting Duties on Transfers of Immovables. The notary must explicitly state the nature of the relationship in the deed for the exemption to apply. A supplementary duty of up to $200 may still be charged.
Can I add my spouse to the property title?
Yes, through a partial deed of cession. However, if the property is mortgaged, your lender will usually need to authorize the modification, and your spouse may need to be added to the hypothec. The tax consequences (for both of you) and the implications for family patrimony or parental union patrimony must be assessed beforehand.
Does a transfer between spouses affect my principal residence designation?
The principal residence exemption generally transfers automatically between married, civil-union, or common-law spouses in a spousal rollover. However, each situation has particularities — especially if one spouse owns another residence. Prior planning avoids tax surprises at a future sale