The Government of Alberta has officially announced that the fee increases outlined in its spring budget will take effect on October 20, 2024. These changes will have a significant impact on real estate transactions as amendments to the Land Titles Act and the Tariff of Fees Regulation come into force.
While the flat fee of $50 for land transfers and mortgage registrations will remain unchanged, the more critical aspect of the new regulations is the adjustment to the variable fee structure, which is now being replaced by a levy.
Key Fee Changes to Know
- Transfers of Land:
- The variable fee, which was previously $2 per $5,000 of property value, will increase to $5 per $5,000.
- Mortgage Registrations and Land-Charging Caveats:
- The variable fee for mortgage registrations and caveats charging the land will rise from $1.50 per $5,000 of mortgage value to $5 per $5,000.
To put these changes into perspective, a transaction involving a $450,000 property with a $405,000 mortgage currently incurs fees of $401.50. Under the new levy, this same transaction will cost $955—more than double the current amount.
Alberta’s Fee Landscape Compared to Other Provinces
Despite these increases, Alberta’s land title and registration fees will still rank among the lowest in Canada. In many other provinces, real estate transactions incur land transfer taxes or much higher registration fees, meaning Alberta remains a relatively cost-effective place for property buyers and mortgage holders.
How to Avoid the Fee Increase
If you’re currently in the process of purchasing property or securing a mortgage, it may be worth accelerating your timeline to avoid the upcoming fee hike. Transactions submitted to the Alberta Land Titles Office by Friday, October 18, 2024, will lock in the current fee schedule, allowing you to bypass the levy and potentially save hundreds of dollars.
This is particularly important for purchasers and borrowers looking to finalize their deals before the new charges come into effect. By expediting your transaction, you could shield yourself from the substantial cost increases that are just around the corner.
What’s Next?
With the clock ticking toward the October 20, 2024 implementation date, it’s important to consult with your real estate lawyer or advisor as soon as possible to understand how these fee changes may affect your upcoming transactions. Proactively managing your timelines could lead to significant savings. Stringam Law has the capacity and expertise to assist you with all of your real estate law needs and we would love to connect.
