Who Pays the Lawyer and Land Titles Fees When Buying in Saskatchewan?

Once a realtor writes up an offer on a home, the next question is usually about closing costs. Who pays the lawyers, and who pays the government fees to move the title into a new name? The answer depends on what the signed offer says, but a common starting point exists.

This article explains how those costs are generally split under the standard offer-to-purchase template, how Saskatchewan's transfer fee differs from a land transfer tax, and why you should confirm current fees before you budget.

This article covers the law of Saskatchewan.

The standard split under the offer to purchase

In a standard Law Society of Saskatchewan offer-to-purchase template, each party pays their own lawyer. That means the buyer pays the buyer's lawyer and the seller pays the seller's lawyer.

The same template says 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 the exact terms you are signing and ask a lawyer if anything is unclear.

Saskatchewan has no land transfer tax

CMHC's provincial fact sheet lists no land transfer tax for Saskatchewan. Instead, there is a provincial fee to transfer property, based on the value of the property.

CMHC states that fee as 0.3% of value for properties valued at $8,800.01 or more. Treat that as a general guide rather than a final figure, because fees can change.

Check the current fee before you budget

Registry fees can change over time. Other sources may quote different percentages or thresholds than the one above, so do not rely on any single figure from memory or from a third-party website. Check the current fee schedule at saskregistries.ca, which now mirrors the older isc.ca pages, or ask your lawyer to confirm the amount before closing.

What the buyer's lawyer checks on the title

Part of a lawyer's work is looking at the current title. 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.

Quick Search does not show previous owners or interests that were removed. The advanced Search tool covers those. You do not need to do this yourself, but it helps to know what the checking involves.

Reading a title and condominium paperwork

On an ISC title, registered interests are any right, interest or estate, legal or equitable, recognized at law and less than title. Mortgages and liens appear as interests, and a title lock is a prohibition on the title. Judgments are tracked separately in the Judgment Registry.

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.

If you are buying a resale condominium unit, you can request an estoppel certificate from the corporation. It covers fee payment status, contribution amounts, insurance, and outstanding lawsuits or judgments against the corporation. The 2001 Regulations allow a fee of up to $200 for it. How these items affect your own purchase depends on the facts, so it is worth confirming with a lawyer.

Condominiums also come with a few other points worth knowing about before you make an offer:

• 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 (s. 44(2)).
• The reserve fund is a corporation asset held in trust for statutory purposes. It cannot be paid out to owners while the property remains under the Act, and 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. Condominiums with fewer than 12 units, and single-owner rental condominiums, are exempt from the reserve fund requirement.
• For a new condominium, the developer must give the buyer a copy or description of the purchase agreement, bylaws, management agreement and condominium plan, among other documents.

What to do next

Closing costs are easier to manage when you know the full list before you sign. Which of the items above apply to you depends on the property and the wording of your offer, so it is worth confirming the details with a lawyer.

• Read the cost clauses in your offer to purchase before signing.
• Ask your lawyer for an estimate of legal fees, registry fees and the transfer fee.
• Check the current fee schedule at saskregistries.ca.
• Budget separately for your own lawyer and for the registration of your mortgage.
• If you are buying a condominium, ask to see the bylaws and the estoppel certificate or developer documents.
• If your offer differs from the standard template, ask a lawyer to explain who pays what.

Frequently asked questions