Property Transfer Tax
Property transfer tax is a land registration tax payable when an application is made at any Land Title Office in Manitoba to register changes to a certificate of title. "Land" includes any interest in land, including any right, title or estate in it of any tenure, with buildings and houses. The purchaser must file a property transfer tax return at the Land Title Office for each transfer of a registered interest in property (taxable transaction). The tax rate is .05 per cent on the first $50,000 of the fair market value of the property, plus 1 percent on the fair market value over $100,000, plus 1.5 percent on the fair market value over $150,000 plus 2 percent over $200,000.
Our Land Title System
We are fortunate in Manitoba to have a great land title system. It is based upon the “Torrens System" (originally developed by a person named Robert Torrens in Australia) where registration provides an “indefeasible title” (ex. conclusive evidence of ownership). The main advantage of the system to some other jurisdictions is that we do not have to worry about historical investigations or past defects in the chain of title. We can rely upon the title information that will be shown at the Land Title Office regarding the property being purchased. Manitoba is divided into several land title districts.
The foregoing information is only intended to be of general nature and is not intended to be comprehensive. Each property transaction is unique and obviously it is important that the parties have good communication with their advisors (realtor, lawyer, bankers) in order to ensure they are fully advised.