Hate to be the Grinch but Major price increases for Property Searchs November 1

[Dave2]

Apart from the LRO search increase, the other increases just adjust the price based on CPI - just keeping pace with inflation.  They aren't even incrementing by the full CPI...only 50%.

JT:

Once you add in the fact that they also added HST to the increase the price increase is well above inflation.  Your basic MINIMUM search package of title and execution search for a property with one owner is now almost $45.00 compared to under $20.00 before.  Bottom line is future title search expenses will be significant.  

Add to that the additional searching we will need for environmental and we will get to your desired $150 per tax sale in a number of cases.   

We are getting price increases in other areas as well.  I just got dinged by a municipality who are charging me with a surcharge for the change of address so they can charge me property taxes.  

I just hope you are right that this will result in less competition but I don't think so.  If the tax sale quality and volume we see in November is the new normal more people will get interested.  

[jt]

I'm not saying it is cheap.  Only that it hasn't gotten much more expensive.

[jt]

...also, I think the reason for HST now is because $20 of the fee is the ELRSA fee which is subject to HST.  The old $8 was a statutory fee and is not subject to HST.  I haven't ordered a search since the change, but I think you'll find the HST charged is not 13% of the total.  I think it will be 13% of only the ELRSA fee i.e. ($20x0.13=2.6).

That is, the statutory fees under the Land Titles Act (i.e., the $8) goes to the government so no tax is charged, but the ELRSA fee (i.e., the $20) goes to the ELRSA service provider, Teranet, and so these are subject to tax.

You are now paying HST since you are now paying an ELRSA fee.

[Dave2]

Matt/JT/ Mountainman:

We have spent too much time on this subject and the best way to find out is how it applies in Practice. Lets look at a Tax Sale that even OTS or Tri Target have yet to find.  Over 30 properties most within 20 minutes of a Go Station, Close to 401 and maybe with walking distance of the rumoured nudist Beach  

http://www.porthope.ca/public-notices/sale-of-land-by-public-tender-7

Most minimums less then $10,000 and if you can get a buildable lot for minimum price with the current price of Land in Clarington (It is just east of the Clarington / Port Hope county Line) you can probably make 10 times your investment.  Some of the lots are undersized so you will have to do a combination of adjoining lots.

Of course if you want to learn French there is always Montreal but you will have to wait until next year as the tax sale is today.  

http://ville.montreal.qc.ca/portal/page?_pageid=44,9487678&_dad=portal&_schema=PORTAL

[jt]

Dave2:

Thanks for the link.  Port Hope certainly puts together a great tender package.  The summary at page 37 regarding RCP 173 was far more information than is often provided.