Starting Oct. 20, 2024, buyers in Alberta will face increased closing costs due to a new Land Titles Registration Levy.  

This change, announced in Budget 2024, will replace the current variable fees for transferring land and registering mortgages with a flat levy of $5.00 per $5,000 of property or mortgage value, along with a $50 flat fee. This new structure applies to transfers of land, mortgage registrations, and some caveats. 

Key details 

• Current vs. new fees 
  • Previously, land transfers incurred a fee of $50 plus $2.00 for every $5,000 of property value, while mortgage registrations cost $50 plus $1.50 for every $5,000 of the mortgage amount. Starting Oct. 20, these variable charges will be replaced by the levy: $5.00 per $5,000, plus a flat $50 fee. 

• Submission timing 
  • If a lawyer submits all required documents to the Land Titles Office before Oct. 20, the old variable fees will apply—even if the registration is completed after that date. However, any submissions made on or after Oct. 20 will be subject to the new levy.
  • Incomplete submissions may be rejected and, if resubmitted after Oct. 20, will be charged under the new levy. Additionally, extensions beyond 30 days may also trigger the new levy. 

How the levy impacts buyers 

A typical real estate transaction, such as purchasing a $750,000 home with a $650,000 mortgage, would currently cost about $595 in fees. After the levy is implemented, that same transaction will cost $1,500—more than double the previous amount. This increase may surprise buyers, so it's crucial to inform them ahead of time to manage expectations. 

Calculating the difference 

If a property is purchased for $750,000 and the buyer will be getting a mortgage for $650,000, the fees for the Land Titles Office costs are compared below.

For demonstrative purposes only, final fee calculations should be quoted by the buyer's lawyer. 

What REALTORS^® should do 

Working with buyers during this transition period is essential to ensure a smooth process. Sharing this information early can help alleviate stress and foster trust by providing your clients with a clear understanding of the updated fees. Even after the new levy takes effect, Alberta will continue to have Canada's lowest title transfer fees. While this may not be welcome news, transparency is key to navigating the complexities of home buying. 

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