Transferor (Land Title Act)

How BC law treats it

Under the Land Title Act, the transferor signs the Form A Freehold Transfer, and its signature is witnessed by an officer, such as a BC lawyer or notary, who certifies the execution. The transferor must be the registered owner, or someone with authority to act for it, such as a company's authorized signatory or an attorney under a registered power of attorney. Registration, not delivery of the document, makes the transfer effective against third parties. The word 'grantor' remains common in BC. The owner who grants an easement, a statutory right of way under section 218, or a section 219 covenant is called the grantor, and the party receiving the benefit is the grantee. In trusts, grantor is sometimes used as another word for the settlor who creates the trust. A transferor cannot use a transfer to defeat its creditors. The Fraudulent Conveyance Act lets creditors set aside a transfer made with intent to delay, hinder or defraud them, and the Fraudulent Preference Act targets transfers that prefer one creditor over others when the transferor is insolvent. Non-resident transferors must deal with section 116 of the Income Tax Act, which can make the buyer liable for tax unless a clearance certificate is obtained or funds are held back.

What it means for your business

When a business sells or transfers land, it signs as transferor and is responsible for delivering clear title, discharging charges and complying with tax and creditor rules. Transfers between related companies or to family members are common in reorganizations but can be challenged by creditors if made when the business owes money. Buyers from non-resident sellers must manage section 116 withholding. Example: A BC company facing a large judgment transfers its warehouse to the owner's spouse for one dollar. The judgment creditor sues under the Fraudulent Conveyance Act to set aside the transfer and register its judgment against the property.

Risks and common mistakes

Having someone sign as transferor who is not the registered owner or has no documented authority to act for it. Transferring property to a related party while facing creditor claims, inviting a fraudulent conveyance action. Overlooking a non-resident transferor's section 116 obligations, leaving the buyer liable for tax. Using US 'grant deed' terminology and procedures in a BC transfer. Failing to discharge the transferor's mortgages and liens before or at completion.