Ontario tax sale properties are the sale of one or more properties by a municipality, to recover unpaid property taxes on those properties. Ontario tax sale properties are conducted either by public auction or by public tender. After three years of unpaid property taxes, a property may be entered into the tax sale process in Ontario, Canada.
Ontario tax sale properties may sell for less than the market value of the property. This is because a municipality only needs to obtain the amount of taxes owing including any accumulated interest and penalties), plus any costs involved in conducting the tax sale. The highest qualified tender is declared the successful purchaser.
After a tax deed has been registered, the former owner cannot redeem the property. However, before a tax deed is registered, the owner might be able to redeem the property by paying the cancellation price, thereby stopping the sale.
If you are planning to buy Ontario tax sale properties or a Canadian real estate investor, you must understand thoroughly Municipal Act 2001.
Since there is no one to look after your interest, you are buying it "as is' where is". You need to do proper "Due Diligence"
You can learn more at www.Flipping4Profit.ca and take advantage of their expertise and years of practical knowledge.
All these may have all kind of strings attached.You can not see the property neither you will get vacant possession.
Getting financing on these deals are impossible due to the nature of deals.
Ontario Tax Sale Properties
Ontario tax sale properties are not typical real estate transactions. If you are considering participating in a tax sale, it is highly recommended that you seek independent legal advice from a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada. You must know the risks as well as your obligations before start investing in Ontario tax sale properties.
It is highly recommended that you get proper education, training and eye witness field training with financial back up form Professional real estate investors group (PREIG) Canada.
In addition, it is not permitted to enter upon a property that is advertised for Ontario tax sale properties . These are not typical real estate transactions. Entering upon a property advertised for Ontario tax sale properties proceedings is considered to be trespassing.You can be charged by police.
Ontario tax sale properties are process followed by a municipality to recover unpaid property taxes through the sale of the property in arrears. Ontario tax sale properties become eligible for the initiation of Ontario tax sale properties proceedings once they become three years in arrears.
A Tax Arrears Certificate indicates that the property will be sold if the "Cancellation Price" is not paid within one year of the registration of the certificate. Once a certificate has been registered, partial payments cannot be accepted.
The city shall advertise the property for sale for non-payment of taxes if the "Cancellation Price" is not paid within one year of registration of the certificate. Advertisements are generally published in the local newspaper for four consecutive weeks .
Tender packages for advertised properties are available for sale at the Town hall Customer Service Department.
Legislation regarding the Ontario tax sale properties process is found in the Municipal Act, 2001 including Ontario Regulation 181/03.
Frequently Asked Questions about Ontario Tax Sale Properties
How do I find out what Ontario tax sale properties are currently advertised for tax sale?
All tax sale properties will be advertised for four weeks in the local newspaper
Can I visit Ontario tax sale properties?
No – you cannot legally enter onto a property that is advertised for Ontario tax sale properties . This is not a typical property sale – The Town does not "own" the property in a tax sale and the current property owner on title may still be occupying the property. Entering onto a property advertised for tax sale proceedings is considered to be trespassing.
How do I obtain a tender package for Ontario tax sale properties ?
Tender packages are available for a nominal fee at the Customer Service counter at City hall
When does a tender for Ontario tax sale properties have to be submitted by?
The date of closing for each public tender will be listed on the sale of land by public tender form which is included in the public tender package as well as in any advertising of the property for sale by the Town. Please refer to this notice for the deadline of submission specific to each property.
Is there a deposit that must be made at the time of submitting a tender for Ontario tax sale properties ?
Yes, a deposit must accompany any tender submission. The deposit must be at least 20 per cent of the tender bid amount.
What are the acceptable forms to make the required deposit in for Ontario tax sale properties?
Deposits must be in the form of a money order, bank draft or cheque certified by a bank or trust corporation. The deposit must be made payable to the "Town of ??". Please do not submit cash.
What is the Minimum price that the municipality will sell Ontario tax sale property?
The minimum price is the minimum tender amount shown on the Sale of Land by Public Tender form. This amount represents the property taxes outstanding on the property and any costs associated with the tax sale process.Any submissions of tender less than this price will not be accepted.
If my bid is successful, when is the rest of the purchase price required to be paid?
If your bid is successful, you will be notified by the Town. Within 14 days of this notification, the remaining balance of the tender amount must be paid along with any land transfer tax, HST and any accumulated property taxes.
When is the closing date for Ontario tax sale properties?
The closing date for the tender is listed on the tax sale advertisement and tender package and is specific to each property being advertised.
Who wins a Ontario tax sale properties public tender?
After reviewing the tenders, the Treasurer will reject all but the two highest of the remaining tenders. The Treasurer will then notify the highest tenderer by ordinary mail sent to the address shown in the tender. The highest tenderer then has 14 days to pay the balance of the amount tendered, the applicable land transfer tax and the accumulated property taxes by money order, bank draft or certified cheque to the Treasurer. If the payment of the balance is not paid, the deposit will be forfeited to the municipality and the second highest tenderer will be offered the land.
How do I complete the tender package?
Instructions on how to complete the tender package are included with the package. These instructions must be followed explicitly in order for the tender bid to be valid. There is a form that must be completed in which the bidder submits their bid amount. A deposit of at least 20% must accompany the tender package. Please do not submit cash as your deposit. Your tender must be submitted in a sealed envelope, addressed to the Treasurer. In each tender package, there is a pre-addressed envelope. Please use this provided envelope to submit any bids.
May I submit tenders on more than one land parcel or property?
Please submit separate bids in separate bid envelopes for each property you wish to place a bid on. Please do not combine bids in one form or envelope. Any combined bids in one envelope will be rejected.
How can I submit my tender for Ontario tax sale properties ?
You can submit your tender in person at the Customer Service counter at Town Hall or by courier or by mail. Please keep in mind that your tender must be received by the Treasurer on or before the time and date indicated in the advertisement for tax sale. If your tender is received late, it will be rejected. Rejected tenders will be returned following the tender closing date.
What if I submitted a tender but would like to withdraw it?
A tender may be withdrawn if the tenderer's written request to have the tender withdrawn is received by the Treasurer before 3:00:00 p.m. local time on the last date for receiving tenders. The envelope containing a withdrawn tender will be opened at the time of the opening of the sealed envelopes.
Can the Town cancel a Ontario tax sale properties?
Yes, a tax sale can be cancelled by the Treasurer at any time before a tax deed or notice of vesting is registered on title. This means a tax sale can be cancelled before the tender opening or even after the tender is closed.
Does the municipality make any representations in Ontario tax sale properties?
No. The municipality makes no representation regarding the title to a property or any other matters relating to the lands to be sold. The property may be worth much more or much less than the minimum tender amount. It is the tenderer's responsibility to do their own research before submitting a tender on a tax sale property.
What if I submit a tender and win, but do not pay the balance within the time specified?
If your tender is accepted and you do not pay the balance of the tender amount owing on time for any reason, your deposit will be forfeited to the municipality in accordance with Provincial legislation. The second highest non-rejected bidder will then be notified of a winning bid.
Why was my tender rejected for Ontario tax sale properties?
Some of the reasons a tender could be rejected include:
The tender amount was insufficient in that it was not equal to or greater than the minimum tender amount.
The tender included a term or condition that is not allowed for under the Ontario Tax Sales Regulations (Ontario Regulation 181/03).
The tender envelope was not sealed, did not indicate on it that it is a tax sale or it did not provide a short description or municipal address sufficient to permit the Treasurer to identify the parcel of land to which the tender relates.
The tender was not one of the two highest tenders.
The tender was not in Form 7.
The tender was not addressed to the treasurer or typewritten or legibly handwritten in ink.
The tender was not accompanied by a deposit of at least 20 per cent of the tender amount as shown on the Form 7 tender.
The tender deposit was not made by way of money order, bank draft or certified cheque.
The tender did not relate to just one parcel of land.
A certified cheque drawn on a credit union was submitted as a deposit.
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We believe the information contained in this article to be accurate. It is presented with the understanding that we are not engaged in rendering legal, accounting, or investment advice. When professional assistance is required, utilize the services of a licensed real estate broker, lawyer, accountant, or other consultant as may be required.
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