What is considered a transfer of ownership?

A transfer of ownership refers to the process through which ownership rights of a property are transferred from one party to another. In this context, the assumption of the mortgage debt by the buyer is a clear indication of ownership transfer because it involves the buyer taking over the responsibilities of the existing mortgage, thereby indicating their intent and capability to take ownership of the property.

When a buyer assumes a mortgage, they are not just agreeing to pay off the debt; they are also becoming the new owner of the property. The original owner typically remains on the mortgage until it is paid off, but the buyer's agreement to assume that debt signifies their acceptance of ownership rights and obligations regarding the property.

In contrast, renovating a property does not transfer ownership; it simply involves making improvements while the current owner retains all rights. Refinancing an existing loan is also unrelated to transferring ownership since it is an arrangement between the existing owner and a lender to alter the mortgage terms, not a change in ownership itself. Listing the property for sale may initiate the process that could lead to a transfer of ownership, but it does not constitute a transfer by itself.