Oshawa Property

[ruteger]

Does anyone know the outcome?

[Apex]

Yeah, 93 bids. Highest bid was  $141150.00. One guy complained and said all bids but his should be thrown out because the city supplied envelopes that didn't specify that it was a tax sale and apparently he wrote tax sale on his envelope. The city is looking into legality of the situation.

[ruteger]

That's way too much for that house anyways....could probably find one with a realtor for that much.

[Apex]

Yeah they way overpaid. That house was up for sale and I was in it. Needs a lot of work, there was no heat or hydro in it since December.

[Sasha]

Hi,

Couldn't get out of work today, never made it to the sale, sent in a bid though.  If 'they're looking into the legalities, does that mean they'll have the sale again?

Sasha

[Bobby]

I was there this afternoon and 2 guys objected that to reject all the tenders, as there was words written "Tax Sale" on the envelopes provided by the city.. they are going to get the legal opinion also there was a issue of tax sale was conducted by the deputy treasurer and envelope was not addressed to  City Treasure not in according to Municipal act tax sale. there were 92 bids Highest was 141150 and second highest was 141100.. good luck next time. Any one looking at the Hamilton properties. Please post details if you availabel thank

[Vanmac]

Does anyone know what was wrong with the property?

[Sasha]

Hi,

141,500 is way less than the fair market value for the house (close though).  Nearby houses are going for 170,000 or 180,000.

Sasha

[Bobby]

Does any one know how the city decided finally on the tax sale and the legal consequences.

[Vanmac]

Paying 141500 was too high.  You have to consider the property tax owing - 18000, so you're close to 160,000 for a two bedroom house that needs work.  You could get into a three bedroom and have an inspection for 165000.  Doesn't make sense.

[Sasha]

Hi,

Someone was telling me that if they allow a home close to Toronto that appears to look good on the outside go for much less than the fair market value of surrounding houses then it will bring down the value of surrounding homes.  I'm not sure if the sale price of tax sale properties counts in these determinations. 

Sasha

[DJ]

My impression is that a winning bid includes the tax owing on the property.  In other words, you would not add the tax owing onto the winning bed; is this correct?

[speedfreeksteve]

Hi,

Someone was telling me that if they allow a home close to Toronto that appears to look good on the outside go for much less than the fair market value of surrounding houses then it will bring down the value of surrounding homes.  I'm not sure if the sale price of tax sale properties counts in these determinations. 

Sasha

If you mean by "they" to be the municipality running the tax sale then that information is incorrect. They cannot control what a home goes for in a tax sale. Overpriced or underpriced they have no control on the final price of the property other than possibly withholding information on a property which is something I haven't seen personally.

Do you think the price of one home at a tax sale selling for under market value is going to change the MPAC assessments on every other house in the area? Of course not.

[Vanmac]

My impression is that a winning bid includes the tax owing on the property.  In other words, you would not add the tax owing onto the winning bed; is this correct?

i'm not sure, I was under the impression they were seperate.  Anyone know?

[swanr]

The municipal goverment is not required to get fair market value.  It is only obligated to accept the highest bid.  in fact the difference between the minimun tender amount and the amount of the winning bid goes to the Public Guardian {or legal equivalent.}   

It takes 12 months from when the cancellation price or min. tender is set before the Municipal can set a tender date.  The Cancellation price or min. tender is the amount of back taxes and a small admin fee at the date of intial filing.  It could be much longer before the municpal actually sets the sale date,  so you will end up paying another year or two or three of taxes,  then land tranfer tax, GST unless the land has been sold once before as residence, any crown leins and an admin fee for getting and filing the tax to you.   All things you need to factor into your tender.

if you google Ontario Municipal Act and read the tax in arrears section it is pretty straight forward,  then read the regulation that the act provisions for.  You will be surprised how simple it is.