Quinte West

[Frank]

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I can't imagine they bidded without having execution searches, therefore knowledge of the lien? Was there a legal loophole or agreement in place from Canada Revenue to write off the lien?

It's easy to imagine.  I've seen people bid on properties without doing searches, or even a drive-by to check the condition of the property.  I Once sold one with a Crown Lien, and the fellow did his search afterwards - realizing the extent of the lien he backed out and forfeited his $16,000 deposit - imagine that.

In this case, if the property is worth $80,000 and the guy bought it or $60,000.  The crown still wants $80,000 for it since that is what they could now sell it for.  Nice deal, the guy pays $140,000 total, for something that is only worth $80,000 - you do the math.  Once the guy pays the tax sale bid amount, the crown will be the only interest in the property, and they won't settle for anything less than market value, why would they - that's what it is now worth.

[JAM]

Doubt your buyer will take that route again!

33 acre scenario I understand now, thanks.  Is it common place for the Crown to negotiate this way as RichD found in his enquiries?  Do they provide declarations of such to bidders prior to a tax sale?

[RichD]

What he told me was that so log as it sold for close to fair market value, and he used the assessed value of 55,000 as an example he said if it goes for 50,000 they wouldn't quibble over a few grand and they will release the property if however it sells for 16,000 they would have a prob. with that and the successful bidder would need to cough up the difference to the Gov. prior to them releasing it.
I bid 42,000 but was out bid by 2 others.