Can ownership be transferred without payment of land transfer tax?

Yes, in certain circumstances.

Land transfer tax is paid based on the “consideration” being given by the buyer to the seller. If no actual money is being given by the buyer to the seller, that does not always mean no consideration is being provided. Consideration means any financial gain being provided by the person receiving ownership to the current registered owner.

For example, if a person is being added on title to a property with an outstanding mortgage, the person being added is actually assuming a portion of that mortgage. Let’s say one person owns a property that has a $100,000 mortgage outstanding on title. They want to add another owner who will have a 50% ownership stake in the property. Even if the new owner is not providing any direct money to the existing owner, by taking 50% ownership of the property, they are assuming 50% of the outstanding value of the mortgage, which the law treats as consideration being given to the current owner. Accordingly, the new owner will be required to pay land transfer tax on 50% of the outstanding value of the mortgage ($50,000) resulting in a land transfer tax of $250.

Transfers of title between spouses are exempt from land transfer tax in circumstances such as these, but transfers between other family members can still be subject to land transfer tax.

If there is no mortgage on title, and no money is being provided by the new owner, land transfer tax is generally not applicable, but the buyer will have to disclose the reason why no money was provided to purchase the property.