Must the municipality have a auction?

[cmac]

Hello
I was wondering if anyone here can tell me where to find out if the municipality is legally required to auction off the properties that are in arrears for taxes or do they have the option to sell them privately to individuals, companies, etc? Must a sale be published in the Ontario Gazette(for Ontario?)
Thanks in advance

Colleen

[Frank]

Hello
I was wondering if anyone here can tell me where to find out if the municipality is legally required to auction off the properties that are in arrears for taxes or do they have the option to sell them privately to individuals, companies, etc? Must a sale be published in the Ontario Gazette(for Ontario?)
Thanks in advance

Colleen

Welcome Colleen

Yes, they are legally required.

No, they do not have an option.


and, yes, they must publish in the Gazette.   

[cmac]

Thank you Frank
I have been waiting for a couple of municipalities to have sales, they have mentioned in council minutes months ago that were going to, but no sales have been published in the Gazette or anywhere else,so started to wonder if there might be another way to sell off. Guess they just haven't gotten around to it yet, or everyone paid their taxes.

Thanks again

[Frank]

Thank you Frank
I have been waiting for a couple of municipalities to have sales, they have mentioned in council minutes months ago that were going to, but no sales have been published in the Gazette or anywhere else,so started to wonder if there might be another way to sell off. Guess they just haven't gotten around to it yet, or everyone paid their taxes.

Thanks again

Colleen...tax sales are for the sale of privately owned lands that have not paid their taxes...a sort of forclosure if you will.  There are rules under the Municipal Act which govern how these sales are to take place.

Municipalities often have surplus properties that they wish to dispose of.  If you heard them talking about selling off property at Council meetings, then that is likely the case.  These are owned by the Municipality, and they have deemed that they no longer require them, and want to generate a little cash from them.   First they have to openly declare them to be surplus.  Then they can sell them in just about any fashion they wish...even hiring a real estate agent to flog them...of course in these sales, you will pay market value, but you have the opportunity to do a property inspection of the property, unlike tax sales where it is buyer-beware, and you can't touch the merchandise to see if it has flaws.

Some Municiaplities also own tracts of land for development purposes.  These are usually commercial-industrial, and they may have serviced them, and offer them for sale to industry at a discount, in an attempt to lure industries to town.   This is old style economic development, and I don't believe it is the norm now-a-days.

[MELRAY]

I am aware of a municipality that has attempted to Tax Sale a property a couple of times. I won't sell because of the high price and environmental clean up concerns. I was told by the municipality that they will not take over the property for fear of being on the hook for the clean up. The property they say is still registered in the private owners name. Who seems to have walked away.

If they can't sell it via tax sale don't they have the option or obligation to take over ownership, and in such case can they then sell it as surplus.

Any thoughts?