Changes to Alberta Land Titles Office Registration Fees: What You Need to Know
The Alberta Government’s 2024 budget has proposed increases for registration fees at the Land Titles Office. These fees, which cover the registration of various documents related to real estate, are essential for maintaining accurate records and legal ownership. Here is a breakdown of what is changing and how it compares to the current fee structure.
What Are Registration Fees?
Registration fees are charges imposed by the Alberta Land Titles Office for registering documents including transfers of land, mortgages, builders’ liens and caveats. When these documents are registered, it ensures there is a public record of who owns the land and any interests or encumbrances or liens.
Anticipated Changes
The Alberta Government periodically reviews its fee structure to ensure it covers the costs of providing services while remaining fair and equitable to users. It is also a source of government revenue that may be used to support other government programs.
We do not yet have any specific details as to when the fee changes will be implemented, it is anticipated they could happen as early as May or June, 2024. The proposed changes are primarily aimed at increased fees for registration of transfers and mortgages. The proposed changes will be based on the purchase price or mortgage value and the fees will be calculated at $50 plus $5 for every $5,000 of the purchase price or mortgage value.
Comparison with Current Fees
To understand how the anticipated changes will impact users, here is a comparison to the current fee structure. Current fees for a transfer or mortgage are also based on the value of the property or mortgage.
- Registering a transfer: The current fee is $50 plus $2 for every $5,000 of the property value. The new fee is $50 plus $5 for every $5,000 of property value.
- Registering a mortgage: Currently, the fee for registering a mortgage is $50 plus $1.50 for every $5,000 of the mortgage value. The new fee will be $50 plus $5 for every $5,000 of mortgage value.
Potential Impacts
The changes in registration fees will result in higher costs. For example, here is a comparison those buying a property valued at $400,000 with a 10% down payment and a mortgage for $360,000. Currently total land titles fees for registering the transfer and mortgage are $368. With the increased fees, the total fees would be $860. An increase of $492 in fees.
Alberta still has the lowest land transfer fees in Canada. British Columbia, for example, charges a registration fee plus a property transfer tax. The property transfer tax is 1% on value up to $200,000, 2% on value from $200,000 to $2 million and 3% on the value greater than $2 million. The buyer of the same $400,000 house in BC will pay a property transfer tax of $6,000. Despite the large increase, Alberta’s fees are a bargain.
Conclusion
While specific details of the changes are not yet available, users should be prepared for increases in fees. Staying informed about these changes and understanding how they may impact you is essential for navigating property transactions in Alberta.
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