How to Transfer House Title After Divorce in New Brunswick

New Brunswick charges a 1% Real Property Transfer Tax on all deed transfers — but divorcing spouses can claim a full exemption if they do the paperwork correctly. Transfer the title without the right documentation and you'll pay the tax unnecessarily. On a $300,000 home, that's $3,000.

The exemption exists under New Brunswick Regulation 83-106, Section 2(e) of the Real Property Transfer Tax Act. It applies to transfers of real property between spouses or former spouses made pursuant to a written separation agreement or court order. The key phrase is "pursuant to" — the transfer must be directly linked to the marital settlement.

Step-by-Step Title Transfer Process

1. Finalize the Property Terms

Your separation agreement or court order must clearly specify:

• Which spouse retains the property
• The buyout amount (if any)
• The timeline for completing the transfer
• Whether the departing spouse will sign a quit claim deed or a warranty deed

This legal document is the foundation for everything that follows. Without it, you can't claim the tax exemption, and Service New Brunswick may refuse to process the transfer.

2. Prepare the Deed

A real estate lawyer in New Brunswick prepares the deed for registration. The departing spouse executes (signs) the deed, transferring their interest in the property to the retaining spouse.

Most divorce-related transfers use a quit claim deed — the departing spouse transfers whatever interest they have without making guarantees about clear title. If there are concerns about liens or encumbrances, a warranty deed may be appropriate, but this is less common in divorce settlements.

3. Register at the Land Registry

The deed must be registered at a Service New Brunswick Land Registry office. At registration, you'll present:

• The executed deed
• A certified copy of the separation agreement or court order (to claim the transfer tax exemption)
• Payment of the registration fee ($71.55 to $83.45 depending on document type)

The registrar applies the exemption at the point of registration. If you don't present the separation agreement or court order, the standard 1% transfer tax is assessed and there is no refund process.

4. Confirm the Mortgage

The title transfer and mortgage refinance are connected but separate transactions:

• The title transfer changes legal ownership at the Land Registry
• The mortgage refinance changes financial liability with the lender

You can transfer title before or after the refinance, but the lender will typically require both to be coordinated. Most lawyers handle the title transfer as part of the mortgage refinance closing.

If the property is mortgage-free, the title transfer is straightforward — just the deed, the agreement, and the registration fees.

The Vehicle Transfer Tax Exemption

While you're handling property transfers, note that New Brunswick offers a similar exemption for vehicle transfers between divorcing spouses.

Normally, vehicle transfers are subject to a 15% Provincial Vehicle Tax (PVT) under the Harmonized Sales Tax Act. But transfers pursuant to a marital separation or divorce qualify for the "Family Gift Exemption."

Both spouses must visit Service New Brunswick and complete a Family Gift Affidavit (Form PVTB-104), presenting:

• Proof that tax was paid on the vehicle by the original owner-spouse
• A copy of the signed separation agreement

Watch for the loan takeover trap: If the receiving spouse takes over an outstanding auto loan, the transaction is classified as "consideration" and loses the tax-free gift status. PVT is then calculated at 15% of the greater of the outstanding loan balance or the vehicle's average wholesale value.

The 60-Day Deadline

If property division wasn't finalized before the divorce, remember the strict 60-day window under the Marital Property Act. Applications to the Court of King's Bench for property division must be filed within 60 days of the divorce judgment. After that, statutory property rights are permanently extinguished.

The title transfer itself doesn't need to happen within 60 days — but the court application for division does. Plan accordingly.

The New Brunswick After-Divorce Checklist includes the complete property transfer workflow with fee schedules, exemption requirements, and the chronological sequence for coordinating title transfers with mortgage refinancing.

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