On September 27, 2024, the Government of Alberta announced that the fee increases foreshadowed in their spring budget will take effect on October 20, 2024, when the amendments to the Land Titles Act1 and the Tariff of Fees Regulation (the Regulation)2 are proclaimed in force3.
This means the registration fees to be paid to the Alberta Land Titles Office for each registration of a land transfer or mortgage are about to materially increase. Prior to this proclamation, in addition to a $50 base fee,4 registration fees were calculated at $2 per $5,000 of value for a land transfer and $1.50 per $5,000 of value for a mortgage. As of October 20, 2024, any transfer or mortgage submitted for registration will be calculated at $5 per $5,000 of value (or more simply put, $1 per $1,000) plus the same $50 base fee.5
To put this in real dollar amounts, see the below table for a comparison of registration fees under the old fee schedule and the new fee schedule.
|
|
Old Fee |
New Fee |
|
$1,000,000 Land Transfer |
$450.00 $50 + [$2 x (1,000,000 / 5,000)] |
$1,050.00 $50 + [$5 x (1,000,000 / 5,000)] |
|
$1,000,000 Mortgage |
$350.00 $50 + [$1.50 x (1,000,000 / 5,000)] |
$1,050.00 $50 + [$5 x (1,000,000 / 5,000)] |
While the upcoming amendments to the Land Titles Act will result in substantial increases, Alberta’s fees remain among the lowest for any Canadian jurisdiction for registration fees (or equivalent property transfer or land transfer tax). If possible, purchasers and borrowers may wish to avoid this increase by expediting the closing of planned real estate transaction and submitting their transfer and/or mortgage documents to the Alberta Land Titles Office before Friday October 18, 2024. By doing so, subject to a few exceptions, the submitted transfers and mortgages should be locked into the old fee schedule under the Regulation and will benefit from potentially significant cost savings.
As the timeline is very tight to ensure that the documents are submitted for registration prior to the fee increase taking effect, please reach out to our Commercial Real Estate team to discuss your upcoming commercial real estate transactions to see if we can assist in avoiding the increased fee.
1 Land Titles Act, RSA 2000, c L-4 as amended by Section 5 of the Financial Statutes Amendment Act, 2024.
2 Tariff of Fees Regulation, Alta Reg 120/2000.
3 Financial Statutes Amendment Act, 2024, SA 2024, c 4.
4 Tariff of Fees Regulation, Alta Reg 120/2000, ss 3-4.
5 Land Titles Act, RSA 2000, c L-4, ss 64.1, 102.1. Note that the new fee schedule for transfers and mortgages has been removed from the Regulation and will instead be included in the Land Titles Act itself, specifically sections 64.1 (land transfers) and 102.1 (mortgage registrations).