Property Tax Sales
f taxes on vacant or improved land remain unpaid for a period of at least three years, the Municipal Act provides legislation to municipalities a process in which to recover said taxes. The Municipal Act provides for the municipality to register a Tax Arrears Certificate against properties in any of the prescribed property classes.
A Tax Arrears Certificate indicates that the property will be sold if taxes, penalties, interest and all costs incurred by the municipality are not paid within one year from the date of registration of the certificate. Once the certificate has been registered, partial payments cannot be accepted, but a Council approved tax extension agreement may be arranged with the owner of the land, the spouse of the owner, a mortgagee or a tenant in occupation of the land prior to the expiry of the one year period.
Upon expiration of the one year redemption period, the municipality may advertise the property for sale for non payment of taxes. Advertisements are published in the local newspaper (Standard Freeholder) once a week for four weeks and the Ontario Gazette for one week.
After the four week advertisement requirement, submissions are to be accepted by the public tender method using forms provided by the Department of Financial Services accompanied with a bid in the form of a certified cheque/bank draft or money order for at least 20% of the tendered amount submitted in a sealed envelope prior to the specified date. If no one submits to the minimum bid or no bids are received, the City has the option to vest the property in the municipality's name.
From the day of notification to the highest bidder, this eligible bidder has fourteen (14) days to complete the transaction. All properties are sold without warranty and are sold "as is". The treasurer is not bound to inquire into or form any opinion of the value of the land before conducting a sale and the treasurer is not under any duty to obtain the highest or best price for the land. The municipality has no obligation to provide vacant possession, if occupied.
Property Tax Sale Process Purchasing my first Forclosure