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Ontario tax sale Legislation


PART XI

Ontario Tax sale legislation

SALE OF LAND FOR TAX ARREARS

371.         Interpretation
372.         Interpretation
373.         Registration of tax arrears certificate
374.         Notice of registration
375.         Cancellation of tax arrears certificate
376.         Accounting for cancellation price
378.         Extension agreements
379.         Public sale
380.         Application of proceeds
380(1)     No successful purchaser
381.         Methods of giving notice
382.         Voidable proceedings
383.         Effect of registration
384.         Mining rights
385.         Scale of costs
385(1)     Collection of tax arrears by upper-tier municipality
386.         Immunity from civil actions
386(1)     Power of entry
386(2)     Inspection without warrant
386(3)     Inspection warrant
386(4)     Inspection with warrant
386(5)     Obstruction
387.         Regulations
388.         Transition, prior registrations
389.         Restriction
PART XI

SALE OF LAND FOR TAX ARREARS

Interpretation

371.  (1)  In this Part,

“cancellation price” means an amount equal to all the tax arrears owing at any time in respect of land together with all current real property taxes owing, interest and penalties thereon and all reasonable costs incurred by the municipality after the treasurer becomes entitled to register a tax arrears certificate under section 373 in proceeding under this Part or in contemplation of proceeding under this Part and may include,

(a) legal fees and disbursements,

(b) the costs of preparing an extension agreement under section 378,

(c) the costs of preparing any survey required to register a document under this Part, and

(d) a reasonable allowance for costs that may be incurred subsequent to advertising under section 379; (“coût d’annulation”)

“environmental site assessment” means an investigation in relation to land to determine the environmental condition of the land, and includes a phase one environmental site assessment or phase two environmental site assessment, both within the meaning of Part XV.1 of the Environmental Protection Act; (“évaluation environnementale de site”)

“mobile home” means a dwelling that is designed to be made mobile and that is assessed under the Assessment Act as part of the land on which it is situate; (“maison mobile”)

“municipality” means a local municipality; (“municipalité”)

“notice of vesting” means a notice of vesting prepared under section 379 and includes the title conferred by the registration of the notice of vesting; (“avis de dévolution”)

“public sale” means a sale by public auction or public tender conducted in accordance with this Part and the prescribed rules; (“vente publique”)

“real property taxes” means the amount of taxes levied on real property under this Act and the Education Act and any amounts owed under the Drainage Act, the Tile Drainage Act and the Shoreline Property Assistance Act with respect to the real property and includes any amounts deemed to be taxes by or under any other Act and any amounts given priority lien status by or under any Act; (“impôts fonciers”)

“spouse” means spouse as defined in subsection 1 (1) of the Family Law Act; (“conjoint”)

“tax arrears” means any real property taxes placed on or added to a tax roll that remain unpaid on January 1 in the year following that in which they were placed on or added to the roll; (“arriérés d’impôts”)

“tax deed” means a tax deed prepared under section 379 and includes the title conferred by the registration of the tax deed. (“acte d’adjudication”) 2001, c. 25, s. 371 (1); 2002, c. 17, Sched. A, ss. 72 (1), 73; 2006, c. 33, Sched. Z.3, s. 17.

Application to tax sales under Education Act

(2)  Where, under the Education Act, an officer or collector has the powers and duties of a treasurer and the board has the powers and duties of the council of a municipality, this Part and the regulations made under it apply to tax arrears and to every sale of land for tax arrears owed to the board. 2001, c. 25, s. 371 (2).

Interpretation

372.  For the purposes of this Part,

“abstract index” and “parcel register” include an instrument received for registration on the day the tax arrears certificate was registered even if the instrument has not been abstracted or entered in the index or register on that day; (“répertoire par lot”, “registre des parcelles”)

“index of executions” means the electronic database that the sheriff maintains for writs of execution. (“répertoire des brefs d’exécution”) 2006, c. 32, Sched. A, s. 152.

Registration of tax arrears certificate

373.  (1)  Where any part of tax arrears is owing with respect to land in a municipality on January 1 in the third year following that in which the real property taxes become owing, the treasurer of the municipality, unless otherwise directed by the municipality, may prepare and register a tax arrears certificate against the title to that land. 2001, c. 25, s. 373 (1).

Form

(2)  A tax arrears certificate shall indicate that the land described in the certificate will be sold by public sale if the cancellation price is not paid within one year following the date of the registration of the tax arrears certificate. 2001, c. 25, s. 373 (2).

Escheated land

(3)  This section applies to land that is vested in the Crown because of an escheat or forfeiture under the Business Corporations Act or the Corporations Act before or after the registration of a tax arrears certificate and that land may be sold under this Act for tax arrears. 2001, c. 25, s. 373 (3).

Scope of certificate

(4)  A tax arrears certificate shall not include more than one separately assessed parcel of land. 2001, c. 25, s. 373 (4).

Notice of registration

374.  (1)  Within 60 days after the registration of a tax arrears certificate, the treasurer shall send a notice of the registration of the certificate to the following persons:

1. The assessed owner of the land.

2. Where the land is registered under the Land Titles Act, every person appearing by the
parcel register and by the index of executions for the area in which the land is situate to have an interest in the land on the day the tax arrears certificate was registered, other than a person who has an interest referred to in clause 379 (7.1) (a) or (b).

3. Where the Registry Act applies to the land, every person appearing by the abstract index and by the index of executions for the area in which the land is situate to have an interest in the land on the day the tax arrears certificate was registered, other than a person who has an interest referred to in clause 379 (7.1) (a) or (b). 2001, c. 25, s. 374 (1); 2006, c. 32, Sched. A, s. 153.

Spouse of owner

(2)  If a notice is sent under this section to a person appearing by the records of the land registry office to be the owner of the land, a notice shall also be sent to the spouse of that person and, where this subsection is complied with, section 22 of the Family Law Act shall be deemed to have been complied with. 2001, c. 25, s. 374 (2).

Statutory declaration

(3)  The treasurer shall, immediately after complying with subsections (1) and (2), make a statutory declaration in the prescribed form stating the names and addresses of the persons to whom notice was sent. 2001, c. 25, s. 374 (3).

Inspection

(4)  The treasurer shall permit any person, upon request, to inspect a copy of the statutory declaration made under subsection (3) and shall provide copies of it at the same rate as is charged under section 253. 2001, c. 25, s. 374 (4).

Limitation

(5)  A person is not entitled to notice under this section if,

(a) after a reasonable search of the records mentioned in subsection 381 (1), the treasurer is unable to find the person’s address and the treasurer is not otherwise aware of the address; or

(b) the person has expressly waived the right to notice, either before or after the notice should have been sent. 2001, c. 25, s. 374 (5).

Cancellation of tax arrears certificate

375.  (1)  Before the expiry of the one-year period mentioned in subsection 379 (1), any person may have the tax arrears certificate cancelled by paying to the municipality the cancellation price as of the date the payment is tendered and, after the expiry of the one-year period, a public sale shall be conducted by the treasurer in accordance with section 379. 2001, c. 25, s. 375 (1).

Cancellation certificate

(2)  If payment has been made under subsection (1), the treasurer shall immediately register
a tax arrears cancellation certificate. 2001, c. 25, s. 375 (2).

Effect of cancellation certificate

(2.1)  Unless otherwise shown in the tax arrears cancellation certificate, the certificate, when registered, is conclusive proof of the payment of the cancellation price as of the date set out in it. 2006, c. 32, Sched. A, s. 154.

Lien

(3)  If the cancellation price is paid by a person entitled to receive notice under subsection 374 (1) or an assignee of that person, other than the owner of the land or the spouse of the owner, the person has a lien on the land concerned for the amount paid. 2001, c. 25, s. 375 (3).

Priority of lien

(4)  A lien under subsection (3) has priority over the interest in the land of any person to whom notice was sent under section 374. 2001, c. 25, s. 375 (4).

Contents of certificate

(5)  Where there is a lien under subsection (3), the tax arrears cancellation certificate shall state that the person named therein has a lien on the land. 2001, c. 25, s. 375 (5).

Accounting for cancellation price

376.  (1)  Except where the cancellation price has been determined in accordance with a by-law passed under section 385, a person who pays the cancellation price before the expiry of the one-year period mentioned in subsection 379 (1), by a written request made within 30 days after making the payment, may require the treasurer to provide an itemized breakdown of the calculation of the cancellation price that has been paid. 2001, c. 25, s. 376 (1).
Application to court

(2)  If the treasurer fails to provide the itemized breakdown of the calculation within 30 days of the request or if the person who made the request is of the opinion that the cancellation price has not been calculated properly or that the costs included in the cancellation price by the municipality as costs incurred in proceeding under this Part are unreasonable, the person who made the request may apply to the Superior Court of Justice for an accounting of the cancellation price. 2001, c. 25, s. 376 (2).

Determination by court

(3)  The court shall determine the matter and, if the court determines that the cancellation price was not calculated properly or the costs included in the cancellation price are unreasonable, it may make an order setting a cancellation price which is proper and reasonable but no such order shall relieve a taxpayer of any liability to pay any validly imposed real property taxes. 2001, c. 25, s. 376 (3).

377.  Repealed: 2006, c. 32, Sched. A, s. 155.

Extension agreements

378.  (1)  A municipality, by a by-law passed after the registration of the tax arrears certificate and before the expiry of the one-year period mentioned in subsection 379 (1), may authorize an extension agreement with the owner of the land, the spouse of the owner, a mortgagee or a tenant in occupation of the land extending the period of time in which the cancellation price is to be paid. 2001, c. 25, s. 378 (1).

Conditions

(2)  The agreement may be subject to such conditions relating to payment as are set out in it but shall not,

(a) reduce the amount of the cancellation price; or

(b) prohibit any person from paying the cancellation price at any time. 2001, c. 25, s. 378 (2).

Mandatory contents

(3)  Every extension agreement shall state,

(a) when and under what conditions it shall cease to be considered a subsisting agreement;

(b) that any person may pay the cancellation price at any time; and

(c) that it terminates upon payment of the cancellation price by any person. 2001, c. 25, s. 378(3).

Calculation of time

(4)  The period during which there is a subsisting extension agreement shall not be counted by the treasurer in calculating the periods mentioned in subsection 379 (1). 2001, c. 25, s. 378 (4).

Inspection of extension agreement

(5)  The treasurer, on the request of any person, shall permit the person to inspect a copy of an extension agreement and shall provide copies of it at the same rate as is charged under section 253. 2001, c. 25, s. 378 (5).

Cancellation certificate

(6)  When the terms of an extension agreement have been fulfilled, the treasurer shall immediately register a tax arrears cancellation certificate. 2001, c. 25, s. 378 (6).

Public sale

379.  (1)  If the cancellation price remains unpaid 280 days after the day the tax arrears certificate is registered, the treasurer, within 30 days after the expiry of the 280-day period, shall send to the persons entitled to receive notice under section 374 a final notice that the land will be advertised for public sale unless the cancellation price is paid before the end of the one-year period following the date of the registration of the tax arrears certificate. 2001, c. 25, s. 379 (1).

Advertisement

(2)  If, at the end of the one-year period following the date of the registration of the tax arrears certificate, the cancellation price remains unpaid and there is no subsisting extension agreement, the land shall be offered for public sale by public auction or public tender, as the treasurer shall decide, and the treasurer shall immediately,

(a) make a statutory declaration stating the names and addresses of the persons to whom notice was sent under subsection (1); and

(b) advertise the land for sale once in The Ontario Gazette and once a week for four weeks in a newspaper that, in the opinion of the treasurer, has such circulation within the municipality as to provide reasonable notice of the sale or, if there is no such newspaper, post a notice in the municipal office and one other prominent place in the municipality. 2001, c. 25, s. 379 (2).

Public auction or public tender

(2.1)  If the land is offered for public sale, the minimum bid or minimum tender amount, as the case may be, shall be the cancellation price. 2006, c. 32, Sched. A, s. 156 (1).

Exclusion of all mobile homes

(3)  The municipality may by by-law determine that all mobile homes situate on the land offered for sale shall not be included in the sale. 2001, c. 25, s. 379 (3).

Advertisement

(4)  If a by-law is passed under subsection (3), the advertisement of the sale shall state that the land to be sold does not include the mobile homes on the land. 2001, c. 25, s. 379 (4).
Conduct of sale

(5)  The treasurer, in accordance with the prescribed rules, shall conduct a public sale and determine whether there is a successful purchaser and,

(a) if there is a successful purchaser, shall prepare and register a tax deed in the name of the successful purchaser or in such name as the successful purchaser may direct; or

(b) if there is no successful purchaser, may prepare and register, in the name of the municipality, a notice of vesting. 2001, c. 25, s. 379 (5).

Statement

(6)  The treasurer shall make and register, at the time of registering a tax deed or notice of vesting, a statement stating that,

(a) the tax arrears certificate was registered with respect to the land at least one year before the land was advertised for sale;

(b) notices were sent and the statutory declarations were made in substantial compliance with this Part and the regulations made under this Part;

(c) the cancellation price was not paid within one year following the date of the registration of the tax arrears certificate;

(d) the land was advertised for sale, in substantial compliance with this Part and the regulations made under this Part; and

(e) if applicable, the municipality passed a by-law under subsection (3) excluding mobile homes from the sale of the land. 2001, c. 25, s. 379 (6); 2006, c. 32, Sched. A, s. 156 (2).

Effect of conveyance

(7)  A tax deed, when registered, vests in the person named in it an estate in fee simple in the land, together with all rights, privileges and appurtenances and free from all estates and interests, except,

(a) easements and restrictive covenants that run with the land;

(b) any estates and interests of the Crown in right of Canada or in right of Ontario other than an estate or interest acquired by the Crown in right of Ontario because of an escheat or forfeiture under the Business Corporations Act or the Corporations Act;

(c) any interest or title acquired by adverse possession by abutting landowners before the registration of the tax deed. 2001, c. 25, s. 379 (7); 2006, c. 32, Sched. A, s. 156 (3).

Effect of registration of notice of vesting

(7.1)  Despite subsection 3.6.1 (2) of the Fuel Tax Act, subsection 18 (2) of the Gasoline Tax Act, subsection 22 (2) of the Retail Sales Tax Act and subsection 24.1 (2) of the Tobacco Tax Act, a notice of vesting, when registered, vests in the municipality an estate in fee simple in the land, together with all rights, privileges and appurtenances and free from all estates and interests, including all estates and interests of the Crown in right of Ontario, except,

(a) easements and restrictive covenants that run with the land, including those for the benefit of the Crown in right of Ontario;

(b) any estates and interests of the Crown in right of Canada; and

(c) any interest or title acquired by adverse possession by abutting landowners, including the Crown in right of Ontario, before registration of the notice of vesting. 2006, c. 32, Sched. A, s. 156 (4).

Restriction
(8)  If the municipality passes a by-law under subsection (3), a tax deed or notice of vesting does not vest in the person named in the tax deed or the municipality, as the case may be, any interest in the mobile homes situate on the land. 2001, c. 25, s. 379 (8).

Adverse possession

(9)  A tax deed or notice of vesting, when registered, vests in the person named in it or in the municipality, as the case may be, any interest in or title to adjoining land acquired by adverse possession before the registration of the tax deed or notice of vesting if the person originally acquiring the interest or title by adverse possession did so as a consequence of possession of the land described in the tax deed or notice of vesting. 2001, c. 25, s. 379 (9).

No warranty

(10)  A tax deed does not,
(a) impose an obligation on the municipality to provide vacant possession; or
(b) invalidate or affect the collection of a rate that has been assessed, imposed or charged on the land under any Act by the municipality before the registration of the tax deed and that accrues or becomes due after the registration of the tax deed. 2001, c. 25, s. 379 (10).

Municipal bid or tender

(11)  The municipality to which the tax arrears are owed may by resolution authorize the municipality to bid at or submit a tender in a public sale conducted under this section if the municipality requires the land for a municipal purpose. 2001, c. 25, s. 379 (11).
Inspection of statutory declaration

(12)  The treasurer, on the request of any person, shall permit the person to inspect a copy of the statutory declaration made under clause (2) (a) and shall provide copies of it at the same rate as is charged under section 253. 2001, c. 25, s. 379 (12).

Power of treasurer

(13)  Despite anything in the prescribed rules, except the rules relating to the determination of the successful purchaser, the treasurer, in conducting a sale under this Part, may do all things that, in his or her opinion, are necessary to ensure a fair and orderly sale. 2001, c. 25, s. 379 (13).

Value of land

(14)  The treasurer is not bound to inquire into or form any opinion of the value of the land before conducting a sale under this Part and the treasurer is not under any duty to obtain the highest or best price for the land. 2001, c. 25, s. 379 (14).

No registration

(15)  If a notice of vesting is not registered within two years after a public sale is conducted at which there is no successful purchaser, the tax arrears certificate with respect to the land shall be deemed to be cancelled. 2001, c. 25, s. 379 (15); 2006, c. 32, Sched. A, s. 156 (5).

Effect

(16)  Subsection (15) does not,

(a) prevent the treasurer from registering a new tax arrears certificate with respect to the land and proceeding under this Part; or

(b) relieve the taxpayer of any liability to pay any real property taxes imposed before the sale. 2001, c. 25, s. 379 (16).

Application of proceeds

380.  (1)  The proceeds of a sale under section 379 shall,

(a) firstly, be applied to pay the cancellation price;

(b) secondly, be paid to all persons, other than the owner, having an interest in the land according to their priority at law; and

(c) thirdly, be paid to the person who immediately before the registration of the tax deed was the owner of the land. 2001, c. 25, s. 380 (1).
Payment into court

(2)  The treasurer shall pay the proceeds of sale, minus the cancellation price, into the Superior Court of Justice together with a statement outlining the facts under which the payment into court is made including,

(a) whether the land, at the time of the registration of the tax arrears certificate, was vested in the Crown because of an escheat or forfeiture under the Business Corporations Act or the Corporations Act;

(b) the date that payment is being made into court; and

(c) a notice that a person claiming entitlement to the proceeds of sale must apply to the Superior Court of Justice within one year of the payment into court. 2001, c. 25, s. 380 (2).

Notice

(3)  Within 60 days after making a payment into court under subsection (2), the treasurer shall send a copy of the statement to the Public Guardian and Trustee and to the persons to whom the treasurer sent notice under subsection 379 (1). 2001, c. 25, s. 380 (3).

Payment out of court

(4)  Any person claiming entitlement under clause (1) (b) or (c) may apply to the Superior Court of Justice within one year of the payment into court under subsection (2) for payment out of court of the amount to which the person is entitled. 2001, c. 25, s. 380 (4).

Same

(5)  The court shall, after one year has passed from the day the payment was made into court, determine all of the entitlements to receive payments out of the proceeds of sale. 2001, c. 25, s. 380 (5).

Forfeiture

(6)  If no person makes an application under subsection (4) within the one-year period referred to in that subsection, the amount paid into court under subsection (2) shall be deemed to be forfeited,
(a) to the Public Guardian and Trustee if, at the time of the registration of the tax arrears certificate, the land was vested in the Crown because of an escheat or forfeiture under the Business Corporations Act or the Corporations Act; or
(b) in any other case, to the municipality. 2001, c. 25, s. 380 (6).

Payment out

(7)  The Public Guardian and Trustee or the municipality, as the case may be, may apply to the Superior Court of Justice for payment out of court of the amount that was paid in. 2001, c. 25, s. 380 (7).

Statement to be relied on

(8)  In the absence of evidence to the contrary, the Superior Court of Justice may rely on the statement of the treasurer under subsection (2) in determining whether the amount paid into court under that subsection is forfeited to the Public Guardian and Trustee or the municipality under subsection (6). 2001, c. 25, s. 380 (8).

Payment into general funds

(9)  Money received by a municipality under subsection (6) shall be paid into the general funds of the municipality. 2001, c. 25, s. 380 (9).

No successful purchaser

380.1  (1)  If the treasurer conducts a public sale and there is no successful purchaser, the treasurer may, within two years after the date of the public sale, offer the land for public sale by public auction or public tender, as the treasurer decides, a second time in accordance with the prescribed rules. 2006, c. 32, Sched. A, s. 157.

Notice

(2)  At least 30 days before the land is readvertised for public sale, the treasurer shall send to the persons entitled to receive notice under subsection 379 (1) a notice that the land will be readvertised for public sale. 2006, c. 32, Sched. A, s. 157.

Application of provisions

(3)  Subsection 379 (2) and sections 380 to 387 apply with necessary modifications to the sale as if it were the first public sale. 2006, c. 32, Sched. A, s. 157.

Non-application

(4)  This section does not apply to land if a notice of vesting was registered in respect of the land following the first public sale. 2006, c. 32, Sched. A, s. 157.
Methods of giving notice

381.  (1)  Any notice required to be sent to any person under this Part may be given by personal delivery or be sent by certified or registered mail,

(a) in the case of the assessed owner, to the address of the person as shown on the last returned assessment roll of the municipality;

(b) in the case of any person whose interest is registered against the title of the land, to the address for service of the person furnished under the Land Registration Reform Act, or if none, to the address of the solicitor whose name appears on the registered instrument;

(c) in the case of a person appearing to have an interest in the land by the index of executions for the area in which the land is situate, to the address of the person or person’s solicitor as shown in the index of executions or in the records of the sheriff for the area in which the land is situate;

(d) in the case of a spouse of the person appearing by the records of the land registry office to be the owner of the land, addressed to the spouse of (name of person) at the usual or last known address of such spouse or, if unknown, at the address of the land; and

(e) in the case of the Public Guardian and Trustee, addressed to the Public Guardian and Trustee. 2001, c. 25, s. 381 (1); 2006, c. 32, Sched. A, s. 158.

Statutory declaration, effect

(2)  A statutory declaration made under subsection 374 (3) or made under clause 379 (2) (a) is proof in the absence of evidence to the contrary that the notices required to be sent were sent to the persons named in the statutory declaration and received by them. 2001, c. 25, s. 381 (2).

Statement, effect

(3)  A statement registered under subsection 379 (6) is conclusive proof of the matters referred to in clauses 379 (6) (a) to (d). 2001, c. 25, s. 381 (3).

Receipt of notice

(4)  Nothing in this Part requires the treasurer to ensure that a notice that is properly sent under this Part is received by the person to whom it was sent. 2001, c. 25, s. 381 (4).

Voidable proceedings

382.  (1)  No proceedings for the sale of land under this Part are void by reason of any neglect, omission or error but, subject to this section and to section 383, any such neglect, omission or 500 Internal Server Error

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