If property taxes remain unpaid for a period of three years, the Municipal Act provides for the municipality to register a “Tax Arrears Certificate.”
The tax arrears certificate indicates the property will be sold if the “Cancellation Price” is not paid within one year of registration of the certificate. The owner would be able to redeem the property by paying the full amount of taxes and other costs to the municipality, thereby stopping the tax sale. Partial payments are not accepted. Upon the conclusion of the one year redemption period, the municipality may advertise the property for sale. Advertisements are published in a local newspaper once a week for four weeks and in the Ontario Gazette for one week.
Tax sales are conducted by public tender (a tender is a written document that advises the treasurer how much you will pay for the property). A Minimum Tender Amount is set based upon total outstanding taxes, penalty, interest and the municipality’s costs in conducting the tax sale procedures. The person who submits the highest tender or bid will be permitted to buy the property and has fourteen days to complete the transaction. All properties are sold without warranty and “as is.” The Treasurer is not bound to inquire into, or form any opinion of, the value of the land before conducting a sale and is not under any duty to obtain the highest or best price for the land. The municipality has no obligation to provide vacant possession, if occupied.
Other Costs
Tax sale administrative costs: $500.00
Preparation and registration of a Tax Arrears Certificate: Cost recovery
Preparation and registration of Statutory Declarations: Cost recovery
Preparation and registration of a Cancellation Certificate: Cost recovery
Preparation and registration of a Tax Arrears Extension Agreement: Cost recovery
Survey costs ( if applicable): Cost recovery
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