Transferring Property to a Family Member in BC: Property Transfer Tax Exemptions

Putting a home in a child’s name, adding a parent to title or moving property between spouses is a family decision, but the Province still treats it as a taxable transfer. Property transfer tax is based on fair market value, not on what you pay.

BC has several family exemptions that can reduce the tax to zero. Each has strict conditions, and the transfer can also change your income tax position, your mortgage and your estate plan.

Property transfer tax applies even when no money changes hands

When an interest in land is registered at the Land Title Office, the person receiving it generally pays property transfer tax (PTT) on its fair market value on the registration date. A gift to your daughter, or adding your son to title as a joint owner, is taxed on the value of the interest transferred unless an exemption applies.

The general rates are 1% on the first $200,000, 2% on the portion up to $2 million and 3% above $2 million, with a further 2% on residential value over $3 million.

Example: a parent adds an adult child as a joint owner of a home worth $1,200,000. The child acquires a half interest worth $600,000. Without an exemption, the PTT would be $2,000 (1% of $200,000) plus $8,000 (2% of $400,000), or $10,000.

A PTT return must be filed even when no tax is payable. Your lawyer or notary files it electronically with the transfer and claims the exemption by entering the right exemption code. The Province can audit the claim later.

Who counts as a related individual

Most family exemptions require the person receiving the property to be a “related individual” of the person transferring it. Under the Province’s definition for PTT, that means:

• your child, grandchild or great-grandchild, and their spouse
• your parent, grandparent or great-grandparent
• your spouse, and your spouse’s child, parent, grandparent or great-grandparent.

A child includes a step-child. A spouse is someone you are married to, or have lived with in a marriage-like relationship for at least two years. Brothers and sisters, nieces, nephews, aunts and uncles are not on the list. For the residence and farm exemptions, the person receiving the property must also be a Canadian citizen or permanent resident.

The principal residence exemption

The main family exemption covers a transfer of a principal residence, or an interest in one, directly to a related individual (code 05). The conditions include:

• Six months of residence. The property must have been the principal residence of the person transferring it, the person receiving it, or both, for a continuous period of at least six months immediately before the transfer.
• Three or fewer families. The improvements must be designed and used to accommodate no more than three families.
• No trustee. The person transferring the property must not be a trustee.

The exemption is only partial if the land is larger than 0.5 hectares (1.24 acres) or BC Assessment classifies part of the improvements as non-residential. If part of the interest comes from someone who is not related, such as a sibling who co-owns the home, only the related part is exempt.

When a parent dies, a transfer of the parent’s principal residence from the executor, registered as trustee at the Land Title Office, to a beneficiary who was a related individual of the deceased can be exempt (code 40). See whether an estate needs probate in BC.

The Province updated this guidance in March 2026 to clarify eligibility, so older summaries may be out of date.

Other family exemptions

• Recreational property (code 06). A property usually lived in seasonally for recreation may be exempt between related individuals if it is classified as residential, the land is 5 hectares or smaller and its fair market value is $275,000 or less.
• Family farms (code 07). Land classified as farm land by BC Assessment can be exempt if the farming conditions are met, and this exemption also covers siblings and their spouses.
• Separating spouses (code 15). A transfer to a spouse or former spouse under a written separation agreement or a court order under the Family Law Act can be exempt, but not a transfer to a corporation or third party.

An exemption from the general tax does not automatically cover the additional property transfer tax. If the person receiving residential property is a foreign national, foreign corporation or taxable trustee, the 20% additional tax can apply in five regional districts, including Metro Vancouver.

Income tax, mortgage and title issues to check

• Income tax. Federal rules generally treat a gift, or a sale to a family member below fair market value, as a sale at fair market value. If the home was your principal residence for every year you owned it, the gain is generally exempt, though you still report the disposition. Rentals, second properties and transfers to a spouse raise different issues, so get tax advice first.
• Your mortgage. Many mortgages require the lender’s consent before title changes, and the lender may require the new owner to sign on.
• Recent purchases. If the property was bought less than two years ago, also check the BC home flipping tax, which has its own related-persons exemption and may still require a return.
• Your child’s first home. A child added to title who lives in the home may not qualify later for the first-time home buyers’ exemption, which is for people who have never owned a registered interest in a property that was their principal residence.
• Gift or sale. The Land Title transfer (Form A) must state the consideration, and a BC lawyer or notary must e-sign it. Decide, and record, whether the transfer is a gift or a sale.

Adding a child to title: the estate planning effects

Parents often add an adult child to title as a joint tenant so the home passes to the child outside the estate. That approach has costs.

• Resulting trust. When a parent transfers property to an adult child for no payment, Canadian courts generally presume the child holds it in trust for the parent, and later for the parent’s estate, unless the evidence shows the parent intended a gift. A written record of your intention helps avoid disputes among your children.
• Loss of control. Once your child is on title, you will generally need their signature to sell or refinance, and their share can be exposed to their debts or the breakdown of their relationship.
• Your will. A home that passes by survivorship does not go through your will, which can upset an equal division among your children. Review your will at the same time; if you have none, see who inherits when there is no will.

Moving title within your family? Check the exemptions before you sign

Our real estate lawyers can confirm whether a PTT exemption applies, prepare and file the transfer and PTT return, work with your lender, and fit the transfer into your estate plan.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.