What is a Land Title Transfer Fee?

September 26, 2014
By Cody Battershill

What is a Land Title Transfer Fee and How Much Will it Cost?

Alberta, unlike most other Canadian provinces, does not require payment of a land transfer tax to complete a real estate transaction.

However, there is something called a “land title transfer fee” that many provincial municipalities have - including Calgary - that should be considered into your total budget when buying real estate.

That means it is important to understand just what the land title transfer fee pays for and how it is calculated so you can set aside the right amount of funds for when the time comes to pay it. If you happen to be a Calgary first time home buyer, you may just be particularly interested in these facts.

Then and again, it is important for every home buyer AND seller in the city to be aware of just how much the land title transfer fee is and how it is calculated. Here’s a look:

On Property Value

Land title transfer fee: $50 base + $1.00 for every $5000 or portion thereof of the property value

On Mortgage Value

Land title transfer fee: $50 base + $1.00 for every $5000 or portion thereof of the property value

An Example

So how much will the land title transfer fee be for your next Calgary real estate transaction? Well, let’s take a look at an example:

Let’s say that you have just put in an offer on a beautiful new townhome and have agreed to a purchase price of $340,000.

To avoid Canada Housing Mortgage Insurance, you also put a down payment of larger than 20 percent on the townhome – at $70,000.

From the property value rule above, we can calculate how much the land title transfer fee will be by:

Taking $340,000 and dividing it by $5000 ( 340,000 / 5000 ) = $68

Adding $68 to the $50 base cost ( 68 + 50 ) = $118

Then, from the mortgage value rule above, we can calculate additional fees that will be added to the total by:

Taking the payment of $70,000 and subtracting it from the mortgage ( 340,000 - 70,000 ) = $270,000

Dividing $270,000 by $5000 ( 270,000 / 5000 ) = $54

Adding $54 to the $50 base cost ( 54 + 50 ) = $104

Add these two total numbers together ( 104 + 118 ), and you get the cost of the land title transfer fee associated with your real estate transaction at $222.

While Calgary home buyers and sellers are lucky that they don’t have to pay thousands for land transfer tax like in other provinces, it is important for them to be aware of the land transfer title fee that could cost anywhere from a few hundred to more than six hundred dollars depending on the circumstances.

Have more questions about Calgary Real Estate? Check out our buyer and seller tips:

Calgary Home Buyers Guide

Calgary Home Sellers Guide

Questions about Calgary Real Estate?

Call me anytime at 403-370-4180 or message me below. As an experienced REMAX Real Estate Professional, I am looking forward to helping you accomplish your real estate goals!