Does Saskatchewan Have a Land Transfer Tax When You Buy a Home?

If you are comparing provinces, you may have heard that Saskatchewan has no land transfer tax. That is broadly true, but you do not escape every cost of putting a property in your name.

This article explains what you pay instead, who pays which costs in a typical purchase, and a few steps that help you check the figures before closing.

This article covers the law of Saskatchewan.

No land transfer tax, but a title transfer fee

Saskatchewan has no land transfer tax listed in CMHC's provincial fact sheet. Instead, there is a provincial fee to transfer property that is based on the property's value.

CMHC states the fee as 0.3% of value for properties valued at $8,800.01 or more. Fee schedules can change, so confirm the current rate with the land titles registry before you rely on it.

In plain words, a land transfer tax is a charge worked out on the value of a property when it changes hands. Saskatchewan uses a transfer fee tied to value instead of that kind of tax. Because the fee depends on value, it is worth building it into your closing budget early, before you settle on what you can afford.

Who pays what in a typical purchase

In a standard Law Society offer-to-purchase template, each party pays their own lawyer, and the purchaser pays the Land Titles Registry fees to register the property in the purchaser's name and to register the purchaser's mortgage. Your own offer may be worded differently, so read it carefully.

Whether you need a lawyer for your purchase, and what your lender requires, depends on your situation, so it is worth confirming with a lawyer before you sign.

Condominium purchases

For a resale condominium unit, the buyer can request an estoppel certificate from the corporation. It covers fee payment status, contribution amounts, insurance, and outstanding lawsuits or judgments against the corporation. On an owner's application, the corporation must issue the certificate in the prescribed form, and it cannot later deny what it certified. The regulations allow a fee of up to $200 for the certificate.

For new condominiums, the developer must give the buyer a copy or description of the purchase agreement, bylaws, management agreement and condominium plan, among other documents.

The Condominium Property Act, 1993 and The Condominium Property Regulations, 2001 govern Saskatchewan condominiums. Bylaws can be amended by special resolution, and no bylaw may prohibit or restrict the lease of units. If you plan to rent out a unit, that matters to you, but you should still read the bylaws in full.

The reserve fund is a corporation asset held in trust for statutory purposes, and it cannot be paid out to owners while the property remains under the Act. Its purposes include unforeseen common expenses and major repair or replacement of common property and building systems. A reserve fund study must be done every five years by a qualified person, such as an engineer or Certified Reserve Planner. Exception: condominiums with fewer than 12 units, and single-owner rental condominiums, are exempt from the reserve fund requirement.

Checking the title before you buy

ISC Quick Search finds currently active titles by parcel number, title number, owner name or land description, and lets you view a title image or request a certified print. It does not show previous owners or interests that were removed, which the advanced Search tool covers.

On a title, mortgages and liens appear as registered interests. A registered interest is any right, interest or estate, legal or equitable, recognized at law and less than title, and a title lock is a prohibition on the title. Judgments are tracked separately in the Judgment Registry, so a title search alone may not show them.

You may also see an old interest on a title. Under the Land Titles Regulations, 2001, the Registrar can issue a notice that a registered interest will lapse 30 days after the notice is sent unless a court order extending the registration is registered. After that, the Registrar registers a discharge on application if no extending order is registered. Whether a particular interest has been dealt with is worth confirming with a lawyer.

What to do next

• Ask for the current title transfer fee before you set your closing budget.
• Add registry fees for both the title and your mortgage to your costs.
• Read your offer to see who pays which costs.
• Review the title for mortgages, liens and any title lock.
• Check the Judgment Registry separately, since judgments are tracked there.
• For a condominium, request the estoppel certificate and read it.
• For a condominium, ask about the reserve fund and its study, unless the building has fewer than 12 units.
• Have a lawyer review the title and the agreement before you remove conditions.

Frequently asked questions