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Hi all,
I wanted to share a story with you from Calgary Herald:
** It appears that the Land Titles fee cost increase will average approx. $1,000.00.***
Budget: Dramatic fee hikes coming to real estate market
In a budget thick with user fee increases, homebuyers face the biggest whack registration fees will triple or quadruple for many new property owners.
The dramatic hikes for registering new land
http://calgaryherald.com/business/real-estate/budget-dramatic-fee-hikes-coming-to-real-estate-market
The fee increase at Land Titles Fees effective July 1st, 2015. These fees were included in the new budget and most people are not aware of how it will affect them. Here is an example of how the fee increase will affect you.
You purchased a property for $550,000.00 and placed a $450,000.00 mortgage on it.
Before July 1st, 2015
$50.00 Flat fee for the Transfer
$110.00 for the variable portion for the Transfer ($550,000.00/5000 x 1)
$50.00 Flat fee for the Mortgage
$90.00 for the variable portion of the Mortgage ($450,000.00/5000 x 1)
$300.00 Total
After July 1st, 2015
$75.00 for flat fee for the Transfer
$660.00 for the variable portion for the Transfer ($550,000.00/5000 x 6)
$75.00 for flat fee for the Mortgage
$540.00 for the variable portion of the Mortgage ($450,000.00/5000 x 6)
$1,350.00 Total
THAT IS A COST IN TOP OF THE LAWYER FEES!
MY ESTIMATION IS THAT, AT CLOSING , A BUYER WILL HAVE TO PAY APROX. $3000-3,500 IN FEES!
Now imagine you are buying a commercial property for $3,000,000.00 and placing a $2,000,000.00 mortgage on it.
Before July 1st, 2015
$50.00 Flat fee for the Transfer
$600.00 for the variable portion for the Transfer ($3,000,000.00/5000 x 1)
$50.00 Flat fee for the Mortgage
$400.00 for the variable portion of the Mortgage ($2,000,000.00/5000 x 1)
$1,100.00 Total
After July 1st, 2015
$75.00 for flat fee for the Transfer
$3,600.00 for the variable portion for the Transfer ($3,000,000.00/5000 x 6)
$75.00 for flat fee for the Mortgage
$2,400.00 for the variable portion of the Mortgage ($,,000,000.00/5000 x 6)
$6,150.00 Total
***Remember, that in order to avoid the increased Land Titles registration fee, Land Titles must have completed the registration prior to July 1. I would assume there may potentially be a big rush on at Land Titles shortly before July 1st. I did phone Land Titles who advised that even if documents were submitted prior to July 1st but held up at their office pending registration, the fee increase will apply. Therefore, I would suggest that all registrations be submitted to Land Titles no later than mid-June in order save approximately $1,000.00. We would recommend that there be no closing dates between June 15th and July 1st because they will likely be registered after July 1st.***
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