Real estate fees skyrocketing
Buying property in B.C. is already pricey, and it's about to cost even more. The property transfer fees you pay to change ownership on titles are going up this week. A jump of 600 per cent.
Why? Because the Canadian legal software company Dye and Durham is cornering the market on the conveyance software, and buying up competitors comes with a price.
Notaries public and lawyers who rely on the property conveyance software got word that the fees for each transaction will go up from $32 to $199.
"Certainly, it's going to mean the cost of buying a home and selling a home is going to increase," explained John Mayr, executive director of The Society of Notaries Public of British Columbia.
Dye and Durham has a growing portfolio. For example, in December 2020, the company paid $530 million to buy DoProcess, the number one provider of real estate software in Canada. The company also owns ProSuite and econveyance.
"There's been a real compression in the marketplace. There's not a lot of competitors. Dye and Durham has been pretty good at buying up various legal services systems," said Mary.
CTV News reached out the company to ask about the large fee increase and received the following response.
“We’ve made significant investments in our real estate closing platforms and we are committed to grow the value we provide customers through consistent and ongoing upgrades, integrations, and enhancements. This price adjustment reflects the true value our software provides by creating a seamless real estate transaction. Legal professionals who are focused on real estate appreciate the true value of our software,” reads a statement from John Robinson, Dye and Durham’s global chief operations officer.
It seems to be the cost of doing business, which seems to never go down, but only up. However, Mayr says, in the scheme of things, related to all the fees you pay when purchasing property, it's not a huge price for consumers.
"It's an annoyance, but it's a minor fee in relation to the real costs that consumers have to pay," he explained.