If you’re relocating to Edmonton from Toronto, Vancouver, or somewhere else in Canada, most of the home-buying process will feel familiar. You make an offer, arrange financing, satisfy your conditions, and close.
But Alberta has several important differences, and a few of them can materially affect your closing costs or catch you off guard during the transaction.
Here’s what actually differs.
1. There Is No Land Transfer Tax in Alberta
This is one of the biggest differences, and it works in your favour.
Alberta does not impose a provincial land transfer tax. Instead, Alberta charges Land Titles registration fees when ownership is transferred and when a mortgage is registered.
As of October 20, 2024, the registration levy uses the following formula for both transfers of land and mortgage registrations:
$50 base fee + $5 for every $5,000, or portion thereof, of the applicable value.
For example, on a $500,000 purchase with a $400,000 mortgage:
- Transfer of land: $50 + $500 = $550
- Mortgage registration: $50 + $400 = $450
- Total: $1,000
The fee structure changed on October 20, 2024. Older calculators may still show the previous rates of $2 per $5,000 for transfers and $1.50 per $5,000 for mortgage registrations. Those figures are outdated.
For comparison:
- Ontario charges provincial land transfer tax, subject to available rebates. Qualifying first-time homebuyers can receive a refund of up to $4,000.
- Toronto imposes its own municipal land transfer tax in addition to Ontario’s provincial tax. Eligible first-time buyers may also qualify for a municipal rebate.
- British Columbia charges Property Transfer Tax, with exemptions and partial exemptions available to qualifying first-time buyers subject to the applicable price thresholds and requirements.
The result is that someone moving from Ontario or B.C. may find their Alberta closing costs substantially lower than what they are accustomed to.
One important distinction: these are registration fees, not a land transfer tax. The amount is calculated according to the Land Titles fee schedule and the value applicable to the particular registration.
2. Spousal Consent Works Differently in Alberta
If you’re coming from Ontario, you may already be familiar with the concept of protecting a spouse’s interest in the matrimonial home.
Alberta has a comparable protection under the Dower Act, but the rules and procedure are different.
Where the Dower Act applies, a married person’s non-titled spouse may have rights relating to the matrimonial home even though that spouse’s name does not appear on title.
For certain transactions, including a sale or mortgage of the homestead, the non-titled spouse’s consent may be required.
Importantly, the required dower consent is generally executed before a lawyer who is independent of the titled spouse’s lawyer.
Separation does not automatically eliminate dower rights. If a married couple has separated but has not divorced, the Dower Act may still apply.
This is particularly important if you’re moving to Alberta after a separation and are purchasing, selling, or refinancing property.
Dower issues should be identified early because a missing consent can delay or prevent a transaction from closing.
There can also be significant statutory consequences for disposing of a homestead without complying with the Dower Act. The exact remedy depends on the circumstances, so this is an area where you should obtain legal advice rather than assuming that separation eliminates the issue.
3. Alberta’s Residential Conveyancing Process Is Lawyer-Centred
If you’ve purchased property in British Columbia, you may have used a B.C. notary for your residential conveyance.
Alberta’s system is different.
Conventional residential purchases and sales—particularly transactions involving mortgage financing—are normally handled by an Alberta real estate lawyer. The lawyer handles the legal closing, including title review, lender requirements, preparation and execution of closing documents, trust accounting, registration and the transfer of funds.
Alberta Land Titles does permit certain documents and transactions to be submitted without a lawyer in appropriate circumstances. So it would be inaccurate to say that every possible land-title transaction legally requires a lawyer.
For a conventional residential purchase with financing, however, working with a qualified Alberta real estate lawyer is the standard and practical approach.
If you’re accustomed to using a notary in B.C., don’t assume the same process or professional role applies in Alberta.
4. The Real Property Report Is an Important Part of Alberta Transactions
This is one of the Alberta differences that catches out-of-province buyers regularly.
In Alberta residential transactions, the standard AREA Residential Purchase Contract commonly requires the seller to provide a current Real Property Report (RPR) together with evidence of municipal compliance, subject to the terms of the particular contract.
An RPR is prepared by an Alberta Land Surveyor. It shows the property’s boundaries and the location of improvements on the property, such as:
- the house
- garage
- deck
- fence
- shed
- other improvements
The municipality may issue a compliance certificate or other evidence of compliance after reviewing the RPR.
An important distinction: an RPR is not a building-code inspection and municipal compliance does not necessarily establish that every interior improvement or feature of the property complies with the Alberta Building Code.
That distinction matters.
If you’re buying a property and the RPR identifies an encroachment or other compliance issue, your lawyer can advise you about the implications and available options before closing.
If you’re selling, ordering an RPR early is sensible. Surveyor availability and municipal processing can take time, and an outdated or problematic RPR can create unnecessary closing pressure.
Title insurance is also commonly used in Alberta residential transactions, particularly where required by a lender or where certain risks need to be addressed. It does not simply make an RPR unnecessary in every transaction.
5. Alberta Does Not Have B.C.’s Home Buyer Rescission Period
This is a major difference for buyers coming from B.C.
British Columbia has a statutory Home Buyer Rescission Period for qualifying residential purchases. The period is generally three business days, and it cannot be waived. If the buyer exercises the right, the buyer must pay the seller 0.25% of the purchase price.
Alberta does not have an equivalent general rescission period for ordinary resale residential purchases.
Once an Alberta purchase contract has been signed by both parties, it is generally binding according to its terms.
Your ability to terminate without breaching the contract will usually depend on the conditions and termination rights contained in the agreement.
Common conditions include:
- financing
- home inspection
- condominium document review
- sale of another property
This makes the condition period particularly important.
If you’re accustomed to B.C.’s three-business-day rescission period, do not assume you have the same protection after signing an Alberta purchase contract.
6. Alberta Uses the Torrens Land Titles System
Alberta operates under the Torrens land registration system.
The current land title is the official record of ownership and registered interests affecting the property. Alberta’s Land Titles system records ownership and registered interests such as mortgages, caveats and liens.
Alberta also maintains an assurance system designed to provide protection against certain losses arising from errors or fraud in the land-title system.
Ontario and B.C. also use land-registration systems, so this is not necessarily a dramatic practical difference for someone moving from either province.
The important takeaway is simply that your Alberta lawyer will conduct a title search and review the registered interests affecting the property before closing.
7. Some Things Are Exactly the Same
Not everything changes when you cross the provincial border.
Several important home-buying rules are federal or otherwise apply nationally, including:
- the Home Buyers’ Plan, which currently allows eligible individuals to withdraw up to $60,000 from an RRSP;
- the First Home Savings Account, which has an $8,000 annual contribution limit and a $40,000 lifetime contribution limit;
- federal mortgage qualification rules, including the applicable mortgage stress test;
- federal GST rules affecting applicable new-home purchases and rebates.
The exact eligibility requirements for these programs can change, so buyers should confirm the current rules before relying on them.
What This Means Practically
If you’re moving from Ontario or B.C. to Alberta, there are two things worth doing before you make an offer.
Recalculate Your Closing Budget
Don’t simply carry over the closing-cost spreadsheet you used in your previous province.
Alberta does not charge land transfer tax, but you will still have Land Titles registration fees, legal fees, title insurance, inspection costs, adjustments and other transaction expenses.
For many buyers, the absence of land transfer tax represents a meaningful saving.
Engage an Alberta Real Estate Lawyer Early
The legal closing process is usually straightforward when everyone has enough time.
Problems become much harder when they’re discovered days before possession.
A title issue, an RPR problem, a dower requirement, an unexpected lender condition or another closing issue can often be resolved with adequate time.
The same problem can become a serious closing emergency when discovered at the last minute.
If you’re moving to Alberta, understanding the differences before you sign the purchase contract can save you money, time and unnecessary stress.
Berjak Law assists buyers and sellers throughout Edmonton and the surrounding area with residential real estate transactions.
Located at 10080 Jasper Avenue, Suite 301, Edmonton, Alberta.
Contact Berjak Law or call 780-879-0200 to discuss your Alberta real estate transaction.
This article provides general information only and is not legal advice. Real estate laws, government fees and tax rules can change. Your specific transaction may involve additional requirements depending on the property, financing, ownership structure and circumstances.
