1. What is “Tax Sale” Properties? In spite of the municipality's efforts, taxes often go unpaid. Unfortunately, many people today simply cannot afford a home, much less a recreational property. This is often due to high property taxes, high mortgage costs and the continuing increase in prices. Tax sale lands provide a possible avenue for any individual to acquire a piece of real estate and pay much less than market value for it. Tax sale properties can be purchased at tremendous discounts by informed buyers.
2. How does “Tax Sale” Works? Each year, cities, towns, villages, and townships in each province compile a list of properties against which taxes have been outstanding for at least two consecutive years. After this two year period, the municipal treasurer prepares a tax arrears certificate and registers it against the property in question. This certificate gives an accurate description of the property and indicates that the land will be sold by public sale if all taxes are not paid to the municipality within one year of the registration of the certificate.
3. WHY DON'T THESE TAXES GET PAID? There are many reasons why properties come to be sold for non-payment of taxes. Some of the most common ones are financial difficulties, death of an owner with no apparent will or heir, owner living abroad and not realizing his/her obligations, owner moved and cannot be traced, disputes of ownership with no party resorting to the courts for settlement, etc....
4. What types of Properties are sold under “Tax Sale”? Tax sale properties can be found in every province. They can consist of vacant lands (such as bush lots and timberland), improved lands (such as farms, cottages and houses), commercial or industrial properties, and occasionally islands. They vary from small lots to large parcels with hundreds of acres.