Buyout of sibling - joint tenancy

We are now looking into a firm to provide us with the service to buyout a sibling. We are joint tenants. Our sibling moved out a year ago with his wife. His wife lived with us for a few years, but she was never part of the title of the home nor did she pay mortgage (my sibling also did not pay mortgage as we covered for him). We had bought the house 8 years before his wife moved in. We have offered him 30K to have his name removed. We also have the intention to press charges on him for defrauding and stealing money from our mother without her knowledge should he refuse to accept the offer. My questions are what fees can be expected as we want all the necessary information before proceeding. Re: Land Transfer Tax (LTT): Is that applicable as there is not transfer of new ownership? There are four people currently on the title and after this transaction, there will still be three. I understand LTT would apply if I were to buy a home which was not under my name. For this transaction, we are only removing a name from the title, mortgage, and line of credit. As well, I wanted to confirm that we can litigate for shared and personal expenses covered by us over the period of the mortgage. For example, if he put in $100 000 into the bank account, but had his van payments and car insurance taken out, that would be his responsibility due to it being under his name. He also stole approximately $65 000 from our mother at that time and therefore the $100 000 would be around the line of $35 000. As he also crashed the van and took the insurance money to pay for another vehicle would mean he accepts full responsibility for the van and insurance. We haven't even gone into the shared expenses yet (hydro, heat, water, etc...). We are willing to let this go should he accept the offer. Thanks!


Asked 12 months ago in Scarborough/north york, Ontario
Categories: Real Estate  Criminal Law

Answer Now

Jason Berger

Answer by Jason Berger

Not VerifiedOntario lawyer

Hi there,
Sounds like there are many issues to discuss. 

Land transfer tax is generally payable based on the consideration that passes with respect to the transfer, unless some other exception applies. In general, buying out a brother would not be an exception. (An example of an exception is a transfer pursuant to a divorce or separation agreement for spouses/former spouses.)

You would need to retain a lawyer to discuss the rest. 

Please let me know if I can help further. 

Thank you. 

Posted 12 months ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Jason Berger, or search the Lawyer Directory.


Comment

Would LTT be less due to it not being a full transfer? I am not understanding the logic as 3/4 of the names are still on the title and no one else is added to it. Would I contact the Ontario Ministry of Finance to get an update list of exceptions? I was thinking to look at a bill which would cover it, but am not sure which bill (I am familiar with bills as I work in the education industry where changes happen regularly). Thanks for your take on it.

Posted 12 months ago


Jason Berger

Answer by Jason Berger

Not VerifiedOntario lawyer

You are right - the LTT would be based on the proportion of the interest being purchased, not the value of the entire property. That's why I said that it is based on the "consideration". In other words, if you buy out his share for $30,000, then generally, LTT would be payable on $30,000.

You will not find an exception to govern this case (I am familiar with all the exceptions). However, if you would like to have a look yourself, the relevant legislation is the "Land Transfer Tax Act". The exemptions are contained in the regulations to the Act.

I hope this helps.

Posted 12 months ago

Please note that this is for informational purposes only and does not constitute legal advice to you. Legal advice pertaining to your particular situation can only be provided by a lawyer who has met with you to obtain all pertinent background information necessary to give you a formal legal opinion. For formal legal advice, hire a lawyer (many give a free first consultation). Contact Jason Berger, or search the Lawyer Directory.

For Lawyers:
Join the Directory
for Free!

Learn More
Family Law Waldemar Igras Alberta Lawyer Waldemar Igras Verified Lawyer Waldemar Igras has restricted his practice almost... Details

Connect with us:

Family Matters with Justice Harvey Brownstone - Watch Online TV ShowWatch Online TV Show