Ontario Tax Sale Property

Tax Sale Guide Home

Crown Liens

Chapter: OTHER TAX SALE PROPERTY SALES

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Crown Liens stay on title - ie. they survive a tax sale. Municipalities have no business in requiring that they be paid before transferring title to you as the successful purchaser - any tax collector that tells you other wise is full of you know what, and you should have your solicitor read him the riot act (I've come across a few that need speaking to).



As to whether or not the crown agency goes after the excess proceeds of sale (presuming there are any), the money is there for them to ask for once it goes to court, and certainly they would have a claim to it. However, whether they do or not is totally at their discretion. Usually the lien has been placed on numerous properties simultaneously (as we saw with the two cottage properties on Kennebec lake) and they could care less who pays up - but eventually they will get theirs. It would certainly improve your equity if they did, and perhaps if you found yourself in that position, you should do whatever you could to pressure them to do so - again a letter from your lawyer affirming that the money is theirs for the asking and that the amount of the lien on title should be reduced by that amount regardless of whether they take action might help (in the end you cannot bluff or cheat the Queen, and if they don't take action to get it then they will still want their entire tythe).