Recent changes to registration fees under the Alberta Land Titles Office have sparked widespread discussion among homeowners, buyers, sellers, and real estate professionals. The adjustments to the land titles fees will have a direct impact on the cost of both commercial and residential real estate transactions in Alberta. For a better understanding of Alberta’s property market, it’s important that you remain aware of new land titles fees, their implications for buyers and sellers, and potential strategies for managing any associated costs.
For advice from a legal professional on your real estate transaction, contact our experienced real estate lawyers at Verhaeghe Law today. We can assist clients with commercial and residential real estate transactions while helping to identify your best financial options throughout the process.
What are Alberta Land Titles Fees?
Land titles fees are charged by the Alberta provincial government to register property-related documents with the Alberta Land Titles Office (LTO). Such documents might include transfers of land ownership or new mortgages, for example. The fees ensure the integrity of Alberta’s land title registry system by providing a secure, transparent record of property ownership and transactional interests.Â
Although land titles fees were traditionally calculated under a nominal rate structure, adjustments to registration fees that came into effect in October of 2024 have seen a notable increase. The change was announced earlier this year in the Alberta government’s 2024 budget. Although the increase is meant to bolster provincial revenues and help modernize Land Titles and Surveys Registry Services, individuals buying and selling property in Alberta will pay higher fees.
Understanding the Recent Increases in Land Titles Registration Fees
On October 20, 2024, the Alberta government revised its fee structure for land titles registrations. There has been an increase in fees for land transfers and mortgage registrations:
Prior to October 20, 2024, registration fees included:Â
- $50 base fee
- $2.00 per $5,000 of value for a land transfer
- $1.50 per $5,000 of value for mortgages
As of October 20, 2024, new registration fees include:
- $50 base fee
- $5.00 per $5,000 of value for land transfers AND mortgages
This change marks the first increase in fees for LTO registrations since 2019. As a result, the material cost of registering for land transfers and mortgages in Alberta will increase for buyers and sellers. For example, a property worth $500,000 will now incur a fee of $550 when a seller registers for a transfer of land ownership. Before October 20, 2024, the same property would have incurred a property transfer fee of only $250. Â
Although this change in LTO fees is meant to generate additional revenue for Alberta, it may place an added financial burden on property transactions. However, despite the increases, Alberta’s LTO registration fees still rank among the lowest in Canada. If you have more questions about how your real estate transaction will be affected by LTO registration fee increases, contact our real estate lawyers at Verhaeghe Law today.
How Will The Changes Affect You?
In most cases, buyers and sellers will now pay over double the cost in registration fees compared to pre-October rates. For individuals in Alberta planning to buy property or refinance, it will be important to budget appropriately for the new levy implemented by the LTO.
If you are worried about how the new land titles fees in Alberta will affect you, there are several strategies you can consider to help mitigate their impact:
- Budget for Higher Closing Costs, Earlier: By considering the fee increase early on in the process, you can plan to save extra money and avoid last-minute financial surprises. Whether you’re a buyer or seller, you should speak to a real estate lawyer to understand how the new fee structure will affect your transaction specifically.Â
- Negotiate Terms in Your Real Estate Contract: In some cases, buyers and sellers can negotiate how closing costs, including land titles fees, are split. Clear communication during the negotiation and contract phase of the real estate process can help you balance the financial burden of new LTO fees. Please note that the new LTO levy will be added to legal fees when closing a purchase.
- Seek Professional Guidance: Speak with an experienced real estate lawyer to ensure all aspects of your agreement, including the payment of land titles fees, are handled efficiently and legally.Â
At Verhaeghe Law, our real estate law team is here to guide you through the complexities of real estate transactions, including navigating increased land titles fees. To learn more about your rights and obligations, schedule a consultation today.
Speak to a Real Estate Lawyer About LTO Registration Fees Today
The recent increases to Alberta land titles fees highlight the importance of preparation and professional guidance in real estate transactions. Buyers, sellers, and investors should account for these changes in their financial planning to help facilitate smooth, unsurprising transactions.Â
If you’re planning to buy, sell, or refinance a property amid the LTO fee increase, Verhaeghe Law can help. Our team is dedicated to providing clear, up-to-date information so you can make well0informed decisions. Contact us today to learn more about how we can assist with your real estate needs.