- In Manitoba the buyer generally pays land transfer tax plus a registration fee, with some exceptions.
- Land transfer tax is worked out on the fair market value of the property on the date the transfer is registered, not simply the contract price.
- Registration is electronic through Teranet Manitoba, so your closing figures should show every registration charge before you sign.
When you buy a home in Manitoba, the price on your offer is not the only amount due at closing. The transfer of title has to be registered, and registration comes with government charges that are easy to overlook when you budget.
This article explains the two charges that usually come up at registration, how land transfer tax is calculated, and who normally pays. Exact fee amounts can change, so use this as a guide to the questions to ask, then confirm current figures before closing.
This article covers the law of Manitoba.
Two separate charges: land transfer tax and a registration fee
People often lump everything into one "land titles fee", but there are two different things. Manitoba land transfer tax is payable by the transferee, who is the buyer, with some exceptions, and a registration fee is payable in addition. The tax is based on the value of the property. The registration fee is a charge for filing the document.
The tax is due when the transfer of title is registered at the land titles office. The government directs people to Teranet Manitoba for further information. Because the tax page refers to some exceptions without listing them, do not assume you are exempt, and do not assume a first-time-buyer rebate applies to land transfer tax.
How land transfer tax is calculated
Land transfer tax is calculated on the fair market value of the property on the date the transfer of title is registered. That is not always the same as the contract price, so ask your lawyer which value will be used on your file.
The tax is charged in brackets, and each rate applies only to the slice of value within that bracket.
| Portion of value | Rate |
|---|---|
| First $30,000 | 0% |
| $30,001 to $90,000 | 0.5% |
| $90,001 to $150,000 | 1.0% |
| $150,001 to $200,000 | 1.5% |
| Amount over $200,000 | 2.0% |
For example, a value of $350,000 comes to $0 plus $300 plus $600 plus $750 plus $3,000, for a total of $4,650. Check the current brackets before you rely on any figure, since rates can be updated.
Registering the transfer and the mortgage
Land titles registrations in Manitoba are electronic and run through Teranet Manitoba.
Registration is completed when the certificate of registration is signed or the data is accepted in the electronic information system, and it takes effect from the day the instrument is assigned a serial number. If you are borrowing, your mortgage is a separate document, and the Real Property Act deals with mortgages and encumbrances in ss. 96 to 116. How any charges for registering it apply to you depends on your situation, so it is worth confirming with a lawyer.
The point of the system is to simplify title to land, give certainty to it, make it easier to prove and speed up dealings with it.
Who pays at closing
As a starting point, the land transfer tax is payable by the buyer, with some exceptions, and a registration fee applies as well. How charges tied to your own mortgage are handled depends on your situation, so it is worth confirming with a lawyer.
- Land transfer tax: usually the buyer, with some exceptions.
- Transfer registration fee: a registration fee applies in addition to the land transfer tax.
- Mortgage-related charges: these depend on your financing, so confirm them with a lawyer.
- Seller's own charges, such as discharging an existing mortgage: confirm who bears them.
One exception worth knowing: no land transfer tax is payable on a transmission into the name of a deceased owner's personal representative, though this should be confirmed with Land Titles. If you are buying from an estate, ask how the transfer will be structured.
What to do next
Registration costs should never be a surprise on closing day. A few steps help.
- Ask your lawyer for a written estimate of land transfer tax, the registration fee and any mortgage registration charge before you sign.
- Confirm which value will be used for the tax, since it is based on fair market value at registration.
- Ask whether any exception to the buyer paying the tax applies to your purchase.
- Set aside funds for these charges in addition to your down payment.
- Review the final closing figures and compare them to the estimate.
If you plan to use the federal Home Buyers' Plan, its withdrawal limit is $60,000, but that is separate from registration charges. A lawyer or accountant can confirm how your own situation fits.
Frequently asked questions
Does Manitoba have a first-time-buyer land transfer tax rebate?
The Manitoba land transfer tax information does not describe a first-time-buyer rebate, so do not assume one applies. At the federal level, the Home Buyers' Plan has a withdrawal limit of $60,000. Ask your lawyer whether any exception applies to you.
When is land transfer tax paid?
It is due when the transfer of title is registered at the land titles office. How the tax is collected and paid at closing depends on your situation, so it is worth confirming with a lawyer.
Is the tax based on the price in my contract?
Not simply. It is calculated on the fair market value of the property on the date the transfer of title is registered. Ask your lawyer which value applies to your purchase.
Do I pay a separate fee to register my mortgage?
Mortgages are dealt with under ss. 96–116 of the Real Property Act, which cover mortgages and encumbrances. The amount and who bears it should appear in your closing figures, so ask your lawyer to confirm it ahead of time.
Sources
- Government of Manitoba – Land Transfer Tax — gov.mb.ca
- Law Society of Manitoba – Wills Ch. 4 Probate and Administration — educationcentre.lawsociety.mb.ca
- CRA – What is the Home Buyers' Plan — canada.ca
- The Real Property Act, C.C.S.M. c. R30 — web2.gov.mb.ca
- Law Society of Manitoba – eRegistration FAQs — lawsociety.mb.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
A home purchase with us is from $1,452.88, tax included. Third-party fees are extra.