Real Property Transfer Tax - Introduction
This section provides general information on Real Property Transfer Tax including legislative authority, applicability, rate and payment requirements.
What is Real Property Transfer Tax?
The purchaser of real property on Prince Edward Island must file an Affidavit of Purchaser with the Registrar of Deeds before a deed of conveyance can be registered.
Under the Real Property Transfer Tax Act and Real Property Transfer Tax Act Regulations anyone who registers a deed of conveyance in the province of Prince Edward Island must pay, at the time of registration, a tax on the greater of the either the purchase price or the assessed value of the real property.
What is an Affidavit of Purchaser?
When real property is sold in Prince Edward Island, Section 15(1) of the Real Property Assessment Act requires that the purchaser file an Affidavit of Purchaser form with the Registrar of Deeds before a deed of conveyance can be registered.
The Affidavit of Purchaser form provides information on the name and address of the purchaser, and the name and address to whom the Notice of Assessment and Notice of Property Charges should be sent, if different from the purchaser. It includes the property number, civic address and location of the property (or portion of a property) that was purchased. The name of the vendor and the consideration paid for the property is also given in the affidavit.
The purchaser must also indicate whether the purchase is subject to Real Property Transfer Tax and, if not, provide the reason for the exemption.
In the Affidavit of Purchaser form, the purchaser must make an oath indicating the consideration paid for the real property being registered.
What is the rate of Real Property Transfer Tax?
The rate of Real Property Transfer Tax Is 1% of the greater of:
- the purchase price of the real property; or
- the assessed value of the real property.
How do I pay Real Property Transfer Tax?
Real Property Transfer Tax is calculated and paid when the deed of conveyance is registered with the Registrar of Deeds.
What happens if my purchase price was less than the assessed value and I feel that the assessed value is too high?
The purchaser must pay the Real Property Transfer Tax due at the point of registration of the deed.
The purchaser can, however, request a review of the assessed value assigned to the property by contacting Taxation and Property Records at (902) 368-4070.
If, as a result of the review, the assessed value is adjusted, the effective date of the adjustment will be the date of conveyance and the purchaser can request a Real Property Transfer Tax refund by completing the Request for a Refund of Real Property Transfer Tax form.
What is real property?
Real property includes:
- land, including land covered by water;
- land and any building or structure situated on the land, including machinery, installations and equipment affixed to a building and contributing to the utility of the building;
- a bulk storage tank, and any supply pipe lines connected to it; or
- any wire, cable, pipe, tower, installation, equipment, or thing, or structures other than buildings, forming part of a television broadcasting, transmission or re-broadcasting or retransmission system including a cable television system, telephone, electric light, telegraph or telecommunications system or any electric power distribution system.
Are there any Real Property Transfer Tax Exemptions?
Information on Real Property Transfer Tax exemptions can be found in the Real Property Transfer Tax Exemptions section.
How are taxpayers informed of changes to the Real Property Transfer Tax Act or the administration of the Act?
From time to time Real Property Transfer Tax Notices are released to communicate or clarify important information related to the Real Property Transfer Tax Act or Real Property Transfer Tax Act Regulations.