On February 29, 2024, the Government of Alberta announced increases to the Land Titles Office (LTO) registration fees, which will affect both property transfers and mortgage registrations. These changes, outlined in the 2024 Budget “Fiscal Plan 2024-27”, will have implications for individuals engaging in real estate transactions across the province.
Currently, the LTO registration fees for transfers of land and mortgages in Alberta are calculated based on a formula. For property transfers, the fees consist of a base fee of $50, plus $2.00 per $5,000 of property value. Similarly, mortgage registrations incur a base fee of $50, plus $1.50 per $5,000 of the principal amount.
The Government of Alberta plans to replace the existing fees with a new Land Titles Registration Levy, the $50 base fee will remain the same. The new levy will be set at a rate of $5.00 per $5,000 of property value and principal amount for both property transfers and mortgage registrations, respectively.
For individuals dealing with property purchases and mortgage registrations, these changes will increase transaction costs.
For instance, consider a $450,000 home purchase with a 10 percent 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%.
Despite the significant increase, the Government of Alberta is quick to highlight that Alberta’s registration fees will still be significantly lower compared to other provinces. For example, while Alberta’s new levy for a $450,000 home purchase would be $955, the equivalent costs in British Columbia, Ontario, and Quebec are substantially higher, as shown in the table below:
| Province | Cost |
|---|---|
| AB | $955 |
| BC | $7,156 |
| SK | $2,050 |
| ON | $5,628 |
| QC | $5,253 |
Source: Service Alberta and Red Tape Reduction
As of the time of writing, the Government of Alberta has yet to announce a definitive date for the implementation of these changes. We encourage you to stay tuned for further updates, as legislation is anticipated to be presented in Spring 2024.
At KH|Dunkley Law Group, our real estate lawyers are very experienced in completing residential and commercial real estate transactions, residential mortgages and commercial financings, and in navigating the requirements of the Land Titles Office. We can help you understand all aspects of a real estate and mortgage transaction, including the costs involved. Please contact us today if you have any questions relating to property or mortgages. View our flat fee pricing for more information.
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.
