Taxes + Land Titles

CALGARY / CANMORE / EDMONTON / YELLOWKNIFE

You likely already know that registering anything at our Land Titles Office (LTO) takes an unbelievable 3.5-4 months! One important factor impacted by this LTO delay is municipal taxes. Here's why.

Municipalities like the City of Edmonton only find out someone has purchased a property when LTO tells them. LTO advises municipalities ONLY when title is registered in the new buyer's name. Since LTO is taking 3.5-4 months to register any document, municipalities are finding out about the new owner about 3.5-4 months AFTER closing.

Until recently, any buyer wanting to pay their taxes or sign up for the monthly TIPP program would have to wait that 3.5-4 months until the property was in their name. Otherwise, until registration occurs, any tax inquiry with the municipality is met with, "Sorry, we have no idea who you are. You CANNOT deal with taxes until title is in your name. Come back in 3.5-4 months."

Buyers expressed their frustration to municipalities, who came up with the following solution. As long as a buyer can provide a copy of the signed purchase contract or the land transfer, most municipalities will use either of those documents as proof of ownership. The buyer can then pay their taxes or sign up for TIPP.

For buyers realtors, if you provide your clients with information, you could add the following to your information packages:

"Our Land Titles Office is experiencing long delays in processing purchase paperwork. It could take 3.5-4 months for title to be registered in your name. In the meantime, if you want to pay your municipal taxes or set yourselves up on the monthly tax payment plan (TIPP), there is a solution. You can provide a copy of the signed purchase contract or the transfer of land, (get this from your lawyer). Most municipalities will use either of those documents as proof of ownership. You can then carry on with paying your taxes or signing up for the monthly tax payment plan known as TIPP."

Protect yourself.

Cheers,

Barry

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