If property taxes remain unpaid for a specified period, the Municipal Act, 2001 governs the circumstances under which a municipality may sell the property. A municipality may register a Tax Arrears Certificate against title if property taxes remain unpaid for the two years prior to January 1 of any year. These timelines apply to both residential and non-residential properties.
A Tax Arrears Certificate indicates that the property will be sold if the cancellation price is not paid within one year of the registration date. Once a certificate has been registered, partial payments will not be accepted unless the owner has entered into an extension agreement with the Town prior to the expiry of the one-year period.
Tax sales are not typical real estate transactions. If you are considering participating in a tax sale, it is strongly 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.
Process Prior to Registration of a Tax Arrears Certificate
The Town issues two property tax bills annually to all property owners. In addition, arrears notices are mailed throughout the year—in March, May, July, October, and December—to properties with outstanding balances.
For properties eligible for the registration of a Tax Arrears Certificate, a final notice will be sent by registered mail, providing the property owner with one month to make the required minimum payment.
If the minimum required payment is not made by the stated deadline, the Town will proceed with the registration of a Tax Arrears Certificate.
| Who is Notified After Registration of a Tax Arrears Certificate Occurs? |
Once a Tax Arrears Certificate has been registered, the Town will send notice by registered mail to:
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| What is the Cancellation Price? |
The cancellation price is the amount equal to:
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| Are Payments Accepted After a Tax Arrears Certificate is Registered? |
| Once a Tax Arrears Certificate has been registered on title, only full payment of the cancellation price will be accepted. Partial payments will not be accepted and, if submitted, will be returned to the payor. |
| When is the very last moment an owner can Pay the Cancellation Price? |
The cancellation price may be paid at any time up to the point when:
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| Why Is a Municipality Selling a Property? |
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Under provincial legislation, a municipality may recover unpaid property taxes through the sale of a property. |
Considerations Prior to Submitting a Tender
| What if the Property Is Occupied? |
| The Town does not guarantee vacant possession. Prospective purchasers are advised to consult a lawyer licensed to practise in Ontario and in good standing with the Law Society of Upper Canada. |
| What Is the Condition of the Property? |
| All properties are sold “as is.” The Town makes no representations or warranties regarding the condition of any property. |
| Can the Property Be Viewed? |
| The Town does not have the authority to provide access to view properties. |
| How Do I Determine Whether There Are Mortgages, Liens, or Executions on Title? |
| It is your responsibility to conduct a title search at your own expense. The Town will not provide this information. Independent legal advice is strongly recommended |
| Will the Town Recommend a Lawyer? |
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No. The Town does not recommend or refer legal counsel. |
| Can I Withdraw or Cancel a Submitted Tender? |
| A tender may be withdrawn if the Treasurer receives a written request to withdraw the tender before the published closing time on the final date for receiving tenders. Withdrawn tenders will be opened at the time of tender opening and formally declared withdrawn.
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After the Tax Sale Tender Has Closed
| What if No Tenders Are Received? |
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If no tenders are received for a property advertised for tax sale, the sale is declared unsuccessful. The municipality then has up to two calendar years from the date of the unsuccessful sale to either:
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| My Tender Was Unsuccessful. How Do I Get My Deposit Back? |
| Tender deposits will be returned after the posting of results on www.townofbwg.com and after notification to the highest and second-highest tenderers. Deposits are not returned on the day of the tender opening.
The town must first evaluate all tenders for compliance with the Municipal Act, 2001 and Ontario Regulation 181/03. Each tenderer will receive written notice explaining any tender rejection. Once this process is complete, tenders and deposits will be returned by registered mail.
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Reasons a Tender May Be Rejected |
Pursuant to the Municipal Act, 2001 and Ontario Regulation 181/03, Part II, sections 9(3) and 9(4), a tender may be rejected if it:
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| What happens to any proceeds in Excess of the Cancellation Price? |
| The Town will retain the cancellation price. Any proceeds in excess of this amount will be paid into the Superior Court of Justice. 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. |
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