Disclaimer: Nothing in this article constitutes legal advice, nor does it establish a solicitor-client relationship between the reader and Alpine Legal Services. Laws and figures referenced are current as of October 2026.
Transferring property between family members in British Columbia is common. Parents add a child to title, a home goes to a spouse, or a family cabin passes to the next generation. A family transfer still goes through the same legal steps as a sale, and there can be property transfer tax, income tax, and mortgage issues to deal with, even when no money changes hands.
Below we walk through how a family property transfer works in BC, which family members qualify for the property transfer tax exemption, the tax traps to watch for, and the paperwork your lawyer or notary will prepare.
How a Family Property Transfer Works in BC
Every change to who owns land in BC has to be registered at the Land Title Office. For a family transfer, the main document is a Form A Freehold Transfer, signed by the current owner in front of a lawyer or notary public and registered electronically. A property transfer tax return is filed at the same time, even if you are claiming an exemption.
A typical family transfer looks like this.
- Pull a current title search to confirm who owns the property and what charges, such as mortgages, are registered.
- Decide what is being transferred, such as the whole property or a share, and how the new owners will hold title.
- Get lender consent if there is a mortgage on the property.
- Review property transfer tax and confirm whether an exemption applies.
- Prepare and sign the Form A transfer and the property transfer tax return.
- Register the documents at the Land Title Office and report the new ownership.
Property Transfer Tax on Family Transfers
Property transfer tax applies to most transfers in BC, including gifts, and it is based on fair market value rather than the price paid. The general rates are 1% on the first $200,000, 2% on the portion from $200,000 to $2,000,000, and 3% above $2,000,000, with an extra 2% on the residential portion over $3,000,000. Our property transfer tax guide covers the full rules.
The province offers an exemption for the transfer of a principal residence to a related individual. Based on the Government of British Columbia’s guidance, the main conditions are these.
- The person receiving the property is a related individual of the person transferring it.
- The property was the principal residence of the transferor, the recipient, or both, for a continuous period of at least six months immediately before the transfer.
- The improvements are designed and used for three or fewer families.
- The recipient is a Canadian citizen or permanent resident.
The exemption does not cover tax on land over 0.5 hectares (about 1.24 acres) or on non-residential improvements, so a larger rural property may still owe some tax. The exemption can also apply to a transfer of a partial interest, such as adding a family member to title.
Who Counts as a Related Individual?
Under the Property Transfer Tax Act, a related individual includes your spouse, child, grandchild, great-grandchild, parent, grandparent, and great-grandparent. It also includes the spouse of your child or grandchild, and the child, parent, or grandparent of your spouse. Stepchildren are included.
Siblings are not. A transfer to a brother, sister, aunt, uncle, niece, or nephew does not qualify for the related individual exemption. A common-law partner counts as a spouse once you have lived together in a marriage-like relationship for at least two years.
Separate exemptions exist for other family situations, including transfers on marriage breakdown under a written agreement or court order, transfers of a family farm, and transfers from a deceased person’s estate. Your lawyer will confirm which one fits before the return is filed.
Income Tax and Capital Gains
The Canada Revenue Agency generally treats a gift of property to a family member as a sale at fair market value. That means the person giving the property may have a capital gain to report, even though they were not paid.
If the property was the transferor’s principal residence for every year they owned it, the principal residence exemption may shelter the gain. A rental property, a second home, or a cabin usually does not get that protection. Speak with your accountant before you transfer, because the timing and structure can change the tax result.
If the home is sold later, the BC home flipping tax and the CRA residential property flipping rules may also apply to a recent transfer. Our guide to capital gains tax on real estate in BC explains how capital gains work when you sell.
Adding a Child to Title: What to Know First
Parents often add an adult child to title as a joint tenant so the home passes to the child without probate. It can work, but it carries real risks.
- In Pecore v. Pecore, the Supreme Court of Canada confirmed that when a parent transfers property to an adult child for nothing, the law presumes the child holds it in trust for the parent’s estate unless the parent clearly intended a gift. Without clear paperwork, this can lead to disputes between siblings.
- Once your child is on title, their creditors or a separating spouse may be able to make a claim against their share.
- You will need your child’s signature to sell or refinance.
- Transferring a share of a non-principal residence can trigger a capital gain.
If you go ahead, your lawyer can prepare a written declaration or agreement that records whether the transfer is a gift or held in trust. Our article on joint tenancy vs tenancy in common in BC explains how the form of ownership affects what happens on death.
Family Transfers When There Is a Mortgage
A transfer does not change who owes the mortgage. If the property has a mortgage, the lender usually has to approve the transfer, and it may require the new owner to qualify and sign on. Taking a name off title is also separate from taking a name off the mortgage. Our guide on how to remove a name from a mortgage in BC covers both steps.
FAQ About Transferring Property to Family in BC
Do I pay property transfer tax if I gift my house to my child in BC?
You may not, if the home qualifies for the related individual principal residence exemption. The home must have been a principal residence for at least six months immediately before the transfer, and other conditions apply.
Can I transfer property to my brother or sister without tax?
Siblings are not related individuals for property transfer tax purposes, so the principal residence exemption does not apply to a transfer between brothers and sisters.
Do I need a lawyer to transfer property to a family member in BC?
The Form A transfer has to be signed in front of an officer such as a lawyer or notary public and registered electronically at the Land Title Office, so most people use a lawyer or notary to prepare and file it.
Is there a deadline to file the property transfer tax return?
The return is filed when the transfer is registered at the Land Title Office. If you claim an exemption, keep records that show you met the conditions.
Get Help With a Family Property Transfer
Alpine Legal Services is a team of lawyers and notaries public helping families across Chilliwack, Abbotsford, Langley, and the Fraser Valley transfer homes between spouses, parents, and children. We prepare the Form A transfer, review property transfer tax and exemptions, deal with your lender, and register everything at the Land Title Office. Learn more about our property title transfer services.
Contact Alpine Legal to talk through your family transfer and get a written quote before any work begins.
Reviewed by Shanal Prasad, Lawyer, Notary Public, and Chartered Professional Accountant. Shanal is the founder of Alpine Legal Services and has helped hundreds of Fraser Valley families and individuals with their real estate transactions.
