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Ulysses101, Lawyer
Category: Canada Law
Satisfied Customers: 3500
Experience:  11 years experience in Canada family law, plus criminal, civil, and employment
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House purchased with a friend in 2014, he now has purchased

Customer Question

house purchased with a friend in 2014, he now has purchased another investment property how do we go about taking his name off title and mortgage?
bank tells us one thing, real estate lawyer tells another
thank you
Submitted: 1 year ago.
Category: Canada Law
Expert:  Ulysses101 replied 1 year ago.

Hello, thank you for the question.

Your friend is going along with this, and wants off of title and mortgage?

Is the mortgage holder a bank? When is the mortgage up for renewal?

Customer: replied 1 year ago.
Thank you for your quick response.
Yes, this is totally mutual and as I said he has purchased another property and needs his name off jointly owned property.
Mortgage holder is CIBC, renewal is 04/01/16
Expert:  Ulysses101 replied 1 year ago.

OK, there are a couple of things you need to get your head around.

First is that the title and mortgage are unrelated. Just because you're on title doesn't mean that you have to be on the mortgage. You can be on the mortgage without being on title. Title is about ownership of the property. Mortgage is about who pays for the loan taken out to buy the property.

You can't just take your friend's name off of title. What you're doing is transferring ownership from the two of you jointly to yourself solely. And if there are any encumbrances on title like a mortgage, those have to be discharged before title can be transferred. It's the same as when you and your friend bought the property. Your current situation is no different.

The mortgage renewal is coming up. So the first thing is to see if you can renew the mortgage in your own name solely. The bank doesn't have to agree to do that, because without your friend on the mortgage it's less secure for them. The bank might not agree to refinance with just you holding the mortgage, they might want a cosigner. If the bank won't co-operate, you will need to shop around to other banks, credit unions, or mortgage brokers.

If the bank will co-operate, then talk to the bank about doing the transfer at the same time as the property renewal. Banks have legal departments, and frequently they can handle simple real estate transactions for competitive fee. If your bank doesn't provide that option then call the real estate lawyer. It's not complicated to do.

The reason why you get different answers from the bank and from the real estate lawyer is the former can tell you about the mortgage and latter about title. And those are different things.

Does that make sense? Please reply with question or comment. If I've answered you then I'd appreciate a positive service rating please.

Expert:  Ulysses101 replied 1 year ago.

Does that all make sense? I'm still here to discuss this if there's more.

Customer: replied 1 year ago.
Thank you for the clarification.
It seems we were improperly advised about both names being required on the title.
Will speak with bank to see how they can facilitate.
Thank you
Expert:  Ulysses101 replied 1 year ago.

You're very welcome. May I please have that service rating? It's how I get credit from the site for helping you today. I'd appreciate it.

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