Tax Sales

The Municipality can sell the property by public tender or public auction. No realtor is involved in the tax sale process. Generally, the Municipality uses a tender process with a fixed submission date. The Municipality chooses an external company to provide support in preparing documents, advice and ensuring compliance with legislation throughout the tax registration and tax sale process. In addition to the legislated advertising requirements, this remains a more economical option to assist the Municipality in meeting all regulatory requirements while ensuring good market exposure to potential bidders. Tender packages are available at the Municipal office or from the Ontario Tax Sales website.

Tax sales are not typical real estate transactions and there are risks associated with this type of transaction. The Municipality is only interested in recovering unpaid taxes, including the costs of the tax registration and sale process. The Municipality is not obligated to, nor incentivized to, obtain fair market value. Prior to participating in a tax sale, it is recommended that potential bidders seek advice from a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada, preferably one who deals in these types of sales, and conduct thorough research before submitting a tender.

In the event the cancellation price is not paid before the expiry of the one-year redemption period (calculated from the date the tax lien is registered) these properties can be disposed of either by public auction or by public tender. Advertisements are published in the local newspapers once a week for four weeks and in the Ontario Gazette for one week. The advertisement will also be published on the municipal website and on our tax agent's website. The tender opening will occur at least seven days after the date of the final publication of the newspaper advertisement.

The cancellation price is an amount equal to all tax arrears owing at any time in respect of land together with all current real property taxes owing, interest, penalties thereon, other land-related costs (such as unpaid water or sewer charges added to the tax account) and all reasonable costs incurred by the Municipality after the Treasurer becomes entitled to register a tax arrears cancellation certificate under s.371 of the Municipal Act. In this context, "land" means both the physical land as well as any buildings and improvements located on it.

The owner can pay the "cancellation price" at any time up to the point in which the property is either transferred to the successful tenderer or vested in the Municipality due to a failed tax sale.

The Municipality does not provide recommendations for legal counsel.

It is the responsibility of the tenderer to search the title at their expense. Bidders may choose to have their lawyer search the title, engage the services of a title searcher, or they may obtain more information or conduct their own search at:

Land Registry Office
100 Dundas Street
London, Ontario N6A 5B6

www.onland.ca

Up until the time the property is transferred to a new owner or is vested in the Municipality as a result of a failed tax sale, legal title does not change. It continues to be held in the name of the current owner.

Because the Municipality does not own the property during the tax sale process, we cannot provide access to view or tour the property. Access without authorization from the owner of the property is considered trespassing.

Properties are sold as is. The Municipality does not make any representation as to the condition or size of the property. The purchaser is responsible for the removal of any debris, junk, etc. left at the property and any associated expenses.

The Municipality does not guarantee vacant possession. Please contact a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada, preferably one who deals with tax sales.

Assessment values are available by viewing the tax roll ledger at the municipal office. Roll books organized by roll number. They are available for public viewing by appointment. Assessed values are provided in the roll book, along with specific property details such as size, etc. To determine annual taxes, you can multiply the assessed values by the appropriate tax rates which are available on our property taxes page.

The Municipality cannot comment on specific opportunities. We recommend that a planner be engaged to discuss this type of question.

The purchaser is responsible for payment of any additional taxes, charges, penalties and interest that may be owing subsequent to the property being advertised for sale. In addition, the successful tenderer is responsible for the land transfer taxes, registration fees and HST, if applicable. All installments and interest to the tax sale date have already been included in the final cancellation price.

No deposit cheques will be released at the tender opening under any circumstances. Deposit cheques of unsuccessful tenderers will be returned by mail only.

The Municipality must review all tenders for compliance with the requirements of the legislation and municipal processes following the public opening. The highest tender may not be the successful tender. Tenders can be rejected for a variety of reasons including noncompliance with the legislation. Lower tenders may be considered.

You cannot pick up your cheque. Deposit cheques from unsuccessful tenderers will be returned by mail only.

The highest qualifying tenderer will be notified by mail within one week following the public tender opening and will be provided with the balance to be paid. To be declared the successful tenderer, the highest qualifying tenderer must pay the balance due within 14 calendar days of the mailing date of the notice. Upon receiving notification, the highest qualifying tenderer may wish to retain a lawyer licensed to practice law in Ontario and in good standing with the Law Society of Upper Canada, preferably one who deals in these types of sales.

The highest qualifying tenderer's deposit is forfeited to the Municipality and the property is offered to the second highest qualifying tenderer who has 14 calendar days from being notified by mail to pay the balance owing.

The Municipality does not have keys to the property and is not responsible for providing one to the purchaser.

Any monies received as part of the tender that are not required to clear the cancellation price are paid into Court. Parties who have a claim may be able to apply to the Court to access these residual monies to cover their loan or other interest.

The Municipality has two years from the date of the failed tax sale to vest the property to the Municipality or re-advertise the property for sale.

There are a number of on-line resources you could consult such as:

•  The Ministry of Municipal Affairs and Housing Citizen's Guide - Plan Review and Approval Process
• The Municipal Act, 2001 as amended
• The Municipal Property Assessment Corporation (MPAC)