As an update to our previous post advising of an increase to registration fees charged by the Land Titles Office for transfers of land and mortgages, the Government of Alberta has recently confirmed that the changes will take effect on October 20, 2024. The levy increase, introduced by the Financial Statutes Amendment Act, 2024, which enacts amendments to the Land Titles Act, will apply to submissions received by the Land Titles Office on or after this date.
The current formula-based fees of $2.00 per $5,000 of property value for transfers and $1.50 per $5,000 of principal amount for mortgage registrations will be replaced with a new levy of $5.00 per $5,000 of property value or mortgage principal, in addition to the existing base fee of $50. This will result in increased transactions costs for real estate purchase and mortgage transactions, as well as for transfer of title.
As an example, consider a $450,000 home purchase with a 10 per cent down payment. Under the current fee structure, the registration fees would amount to $401.50. Once the upcoming changes take effect, the same transaction would incur a levy of $955, representing an increase of $553.50, or 137.86%.
The changes to the levy come into effect on October 20, 2024, such that the current rates will apply to complete submissions received by the Land Titles Office before October 20, 2024 regardless of registration taking place after the implementation date. However, submissions received on or after October 20, 2024 will be subject to the new levy. It should be noted that the levy will be determined based on the date a complete submission is received by Land Titles Office. If an incomplete submission is received before the implementation date and requires resubmission, the new levy may apply if the resubmission occurs on or after the implementation date.
The knowledgeable team at KH|Dunkley Law Group strives to stay on top of all aspects affecting real estate transactions in Alberta. If you are engaging in a commercial or residential real estate transaction, and/or a real estate financing transaction, please contact one of our experienced lawyers to ensure you are properly represented and guided through the process.
This memorandum is for informational purposes only, does not constitute legal advice or an opinion, and does not create a solicitor-client relationship. This is an overview and is not intended to be a complete and exhaustive explanation of the concepts covered. This information may become inaccurate based on passage of time or changes in the law. Nothing herein should be relied upon without seeking the advice of a lawyer.
