If property taxes remain unpaid for a specific period of time, Part XI of the Municipal Act, S.O. 2001 provides the process for collecting property tax arrears.
You should become familiar with Part XI of the Municipal Act, S.O. 2001
Canada has what is called tax arrears certificates and Tax sale.
When taxes are not paid on vacant or improved land for three years, the city can begin a tax sale process by the registration of a Tax Arrears Certificate in the land registry office. These timelines apply to both residential and non-residential classes of property.
A Tax Arrears Certificate indicates that the property may be sold if taxes, penalties, interest and reasonable costs incurred by the city are not paid within one year of registration of the certificate. Once a certificate has been registered, partial payments cannot be accepted.
If a cancellation price is not paid before the expiry of the one-year redemption period, these properties are advertised for sale by public tender. Advertisements are published for four consecutive weeks. The sales are always subject to certain rules and follow procedures, which have been established by legislation. At these sales, the minimum acceptable offer on a property is always the cancellation price, plus accumulated taxes, penalties and interest, GST, where applicable, and the relevant land transfer tax.
To be eligible, bids must be equal to the advertised minimum tender amount. The successful purchasers will be required to pay the amount tendered plus accumulated taxes, penalties and interest, GST, if applicable, and the relevant land transfer tax. All tax properties are sold without guarantee and are sold as is.
You also need to review and understand THE MUNICIPAL ACT, 2001, S.O. 2001 SALE BY PUBLIC TENDER
A Tax Sale of any property is subject to cancellation up to the time of the tender opening without any further notice.
The minimum bid is the Cancellation Price.
A separate tender must be provided for each parcel bid on and must be in the form provided. No substitutes can be accepted.
The tender must be accompanied by a deposit of at least 20% of the tender/bid amount by way of money order, bank draft, or certified cheque payable to the City.
The City is not obliged to provide a survey or reference plan for any parcel of land being sold under tax sale.
The City is not obliged to inquire into the value of land prior to conducting a sale. Further, there is no obligation to obtain fair market value for the land or to ensure that land being sold under tax sale may obtain fair market value at the time of the sale or in the future.
You need to conduct your own research into such matters as zoning, access, work orders, water/hydro and other arrears, building restrictions, or title problems.
The City makes no representations whatever as to the quality and/or quantity of the land being purchased.
A Tax Deed will be provided to the successful purchaser at the time when the balance of the Purchase Price is paid, transfers title of the land in “fee simple” subject generally to:
Easements and restrictive covenants; and estates and interest of the Crown in right of Canada or the Province and
adverse possession interests by abutting owners, if any!
The City is not required to provide vacant possession of any properties which may be occupied and accordingly, should the purchaser require vacant possession, a court application, at your cost, may be required.
I hope this helps and answers your questions.
