Finance & Corporate Services
What The Tax Sale Is And How It Works
The Tax Sale is a way for a municipality to collect unpaid taxes. Any property
with delinquent taxes (2 years overdue) is subject to Tax Sale. The Local
Government Act gives the municipality the right to auction those properties
with delinquent taxes to collect the taxes. If a property owner does not pay
the delinquent taxes plus interest before 10:00 A.M. on the day of the auction,
the property will be sold at the Tax Sale. The Tax Sale is held once a year on
the last Monday of September at 10:00 A.M.
The Auction
The starting price for the property at the auction is called the upset price.
The upset price comprises of all taxes due including penalties, interest, plus
registration and administration fees. Before a person can bid on a property it
must show the auctionner that he or she currently have with them cash,
certified cheque or money order for the amount of the upset price for te
property they wish to bid on.t The highest bidder at or above the upset price
of the property is deemed the Purchaser. The bid amount has to be paid in cash
or by certified cheque. If there is no bid for the property the municipality is
declared the Purchaser.
Ownership and Redemption
The owner of the property retains ownership for one year following the auction
date, which is called the redemption period. From the date of the Tax Sale, the
property owner has one year to redeem the property by paying all taxes,
penalties, interest and fees owed.
If the Property Owner fails to repay all charges during the redemption period,
the municipality can apply to the Land Title Office on behalf of the Purchaser
to change the ownership of property. All liens on the property, such as a
mortgage, will be removed and the Purchaser will get “clear” title. At the end
of the redemption period the property is to be transferred into his or her
name, then she or he will be required to pay sales tax on the Fair Market Value
of the property in accordance with Property Purchase Tax Act.
If the owner redeems the property during the redemption period, the purchaser
will be refunded his total purchase price plus interest.
For more information please contact the finance department at 250-494-6451.