A correcting transaction is taxable. Refer to the Property Transfer Tax Act, section 1 “Definitions and Interpretation”.
To correct a conveyance error on a title, file two transfers:
- A transfer to change the title back to the immediate previous state of registration (reconveyance), and
- A transfer to change the title as the purchaser(s) had originally intended (correcting conveyance).
Qualifying conveyance errors
A qualifying conveyance error is made during the registration of title at the land title office. The conveyance error qualifies if, because of the error, the title was not registered as the purchaser(s) intended.
Common qualifying conveyance errors include:
- The wrong property is transferred
- The wrong name is registered
- One of the two, or more, intended legal parcels of land (parcel identifier numbers) are omitted
- The wrong ratio of ownership is registered
A conveyance error does not include:
- The purchaser or their representative realize there is a better way to transfer the property
- The purchaser changes their mind about transferring the property and wants to rescind the transfer
- An error is made by either the purchaser or their representative, and the property is transferred before all requirements for a particular exemption have been met
Contact us if you are uncertain if the error qualifies as a conveyance error.
How to file property transfer tax (PTT) returns
To correct a qualifying conveyance error, complete the steps below.
- Reconveyance:
- Complete a PTT return and claim the exemption by selecting or entering exemption code 35
- Correcting conveyance:
- Complete a PTT return
- Select "correcting transaction" as the transaction type
- In part I, record the fair market value of the correcting transaction as determined at the date of the original transaction
- Enter the land title registration number and PTT amount paid from the original transaction
The form will calculate whether any tax is due or overpaid. If an overpayment is reported, the ministry will review for a refund.
- Attach the following applicable supporting documents to the return:
- A letter explaining the conveyance error in detail
- A copy of the Contract of Purchase and Sale and the Purchasers Statement of Adjustments
- A copy of any pre-conveyance evidence that supports the purchaser's original intention (for example, contracts, representative's notes, intake lists, emails or any other communication), and
- A copy of the plan and/or strata plan(s), if applicable
Note: In some situations, Step 1 – Reconveyance, is not required.
For example, if one or two intended legal parcels of land was omitted during an original conveyance, you only need to complete Step 2 – Correcting conveyance, to report the omitted parcel of land.