Assignment Sales and Land Transfer Tax

How much LTT is payable on an assignment?

In the Land Transfer Tax Act, the definition of value of consideration:

  • includes the gross sale price of any consideration,
  • the amount expressed in money of any consideration,
  • the value expressed in money of any liability assumed or undertaken by or on behalf of the transferee as part of the arrangement relating to the conveyance, and
  • the value of any benefit conferred directly by the transferee on any person as part of the arrangement relating to the conveyance.

Let assume that John purchases a condo from a Developer for $400,000.00. He then sells it to Mary for $600,000.00 by way of an assignment.

Does Mary pay Land Transfer Tax on $400,000.00 or $600,000.00 when she closes the purchase with the Developer?

The definition above would indicate:

$400,000.00 plus



Brian Madigan LL.B., Broker

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