Pursuant to section 34 of the Registration of Deeds Act, 2009 (Act), an affidavit of value is required to accompany an instrument or notice of instrument submitted for registration to the Registry of Deeds, for,

1. A deed of gift;
2. A deed of confirmation where no prior registrations in relation to that transfer have been filed; and
3. Where the registrar considers it advisable.

Typical circumstances where the registrar would consider it advisable, may include:

1. Where one of more parties are being added to or removed from title of a previously registered instrument. For example, in a dissolution of marriage, where one party is conveying their title interest to the other party the affidavit of value would stipulate the property value in dollars of the percentage of title being conveyed.
2. A refinancing of a mortgage. The affidavit of value would stipulate the amount of new money secured under new mortgage.
3. A declaration of ownership where no prior registrations in relation to that transfer have been filed.
4. Where the consideration paid is substantially lower than the assessed value of the property. A substantial difference for an arm’s length transaction conveying title interest would include where the assessed property value is 50% or more than the consideration paid and the actual dollar difference is $50,000 or more. Factors that the Registry consider when investigating the property valuation include, property location, property size, structures on the property, if the property is identified by civic address, the year of conveyance, recent registered conveyance for the same property and consideration amount.

For related party transactions that are not occurring at arm’s length, the registrar reserves the discretion to request an affidavit of value at a lower threshold than indicated above. A related party transaction occurs where the buyer and seller are known to each other.

General:

• An affidavit of value should contain applicable recitals to sufficiently speak to property value or consideration, as the case may be.
• Subsections 34(3)-(5) of the Act also indicate that:

• • The proof required for an affidavit of value may be made before a person before whom a deed may be proved under section 15 of the Act for documents executed in the province, and 16 of the Act for documents executed out of the province.
  • In determining the value of a property, the value of buildings attached to the land shall be included and the value of the property shall be calculated at the time the property is conveyed or transferred.
• • Where the registrar is not satisfied with the affidavit of value submitted, the registrar may require the person submitting the instrument for registration to produce additional documentation, which may include a copy of the municipal property assessment or a report of a qualified appraiser supporting the valuation. A market value estimate provided by an experienced realtor carrying on business in the area where the property is located may be acceptable subject to the approval of the Registrar.