Homeowners in Airdrie will face increased costs when buying or selling property as Alberta's new Land Titles Registration Levy, which came into effect earlier this week, adds significant fees to real estate transactions.
This change, announced in the 2024 provincial budget, replaces the previous variable charges for land transfers, mortgage registrations, and certain caveats. Under the new system, a fee of $5.00 per $5,000 of property or mortgage value will be applied to land transfers, registrations, and caveats that charge the land.
This represents an increase from the former rates of $2 per $5,000 for land transfers and $1.50 per $5,000 for mortgage registrations and caveats. The $50 flat fee for land transfers and mortgage registrations will remain unchanged.
First announced in Alberta’s 2024 provincial budget, the levy replaces the existing variable charges for land transfers, mortgage registrations, and certain caveats. This adjustment could add hundreds of dollars to the overall cost of purchasing or selling a home.
Submissions made to Land Titles and Surveys before October 20 will continue to be processed under the previous fee structure, even if registration occurs after that date. However, incomplete submissions risk rejection or removal from the registration queue and may be subject to the new levy. Additionally, extensions beyond 30 days could incur the new levy, as outlined in Section 14.1(6)(b) of the Land Titles Act.
The levy is part of Alberta’s plan to generate revenue for modernizing the province’s Land Titles and Surveys system and funding key provincial projects such as roads, schools, and hospitals. With Alberta’s population expected to exceed five million in the coming years, the levy aligns the province’s fees with those of other Canadian regions.
Search services will remain unaffected, and the seniors’ discount will apply only to land title searches. Certain caveats that charge the land will also be subject to the new levy, while non-monetary caveats will stay at their current rates.
Despite concerns about the impact on housing affordability, the Alberta government maintains that the province’s fees remain competitive compared to other regions. Alberta, unlike many other provinces, does not impose a Land Transfer Tax (LTT).
According to the province, a typical residential transaction levy is less than one-fifth of the national average and 40 per cent of the cost in Saskatchewan, the next lowest-cost province.
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