How Deed and Mortgage Registration Fees Work in Newfoundland and Labrador

Buyers in Newfoundland and Labrador often hear that there is no land transfer tax and wonder whether that means no tax on closing. There is still a charge for registering your deed and your mortgage at the Registry of Deeds.

This article shows how each charge is worked out, with sample calculations, where the cap applies, and what to ask your lawyer about who pays what.

This article covers the law of Newfoundland and Labrador.

The charge you pay instead of a land transfer tax

The Services Charges Act imposes a land registration charge payable to the Crown for registering a conveyance of land, a notice of mortgage or an assignment of a lease of land in the Registry of Deeds. It is paid at the time of registration.

The registrar may not register a document unless the proper fee is first paid. A document sent for registration must be accompanied by the proper fee.

How the deed fee is calculated

Where the value of the land does not exceed $500, the charge is $100. Where the value exceeds $500, it is $100 plus $0.40 for each additional $100 or part of $100. The same formula applies to an assignment of a lease of land.

For example, on a $300,000 purchase the value above $500 is $299,500, which is 2,995 blocks of $100. Multiply 2,995 by $0.40 to get $1,198, and add the $100 base for a deed registration charge of $1,298. On a $350,000 purchase the charge is $1,498.

The conveyance charge states no maximum, so it keeps rising with the value of the land.

How the mortgage fee is calculated

A notice of mortgage is charged $100 where the debt secured does not exceed $500. Above that it is $100 plus $0.40 for each additional $100 or part of $100 of the debt secured, paid at registration. A $240,000 mortgage works out to 2,395 blocks times $0.40, which is $958, plus $100, for $1,058.

There is a cap. The mortgage registration charge cannot exceed $5,000. By arithmetic, the cap is reached at roughly $1.2 million of secured debt.

Exceptions and who pays

No fee is payable on registration of a deed or other instrument by or on behalf of the Crown. The Services Charges Act lists no other exemption.

Which party bears each charge depends on the agreement of purchase and sale and on what is set out in the closing statement. For a gift, a registered affidavit of value is required, and the value is calculated at the time the property is conveyed unless the regulations exempt it.

What to do next

• Ask your lawyer for an estimate of the deed and mortgage charges.
• Use the Registry of Deeds online fee calculator to compare, since fees are listed in the Schedule of Fees.
• Check that the purchase price and mortgage amount used match your documents.
• Budget for these charges alongside legal fees and other closing costs.
• Ask who is responsible for each charge before you sign.

Fees can be changed, since the minister sets fees collected by the registrar. Rely on the current figure from the calculator or your lawyer.

Frequently asked questions