Ontario Tax Sale Property Buyer's Guide
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About this ebook
Tax Sale Property Buyer's Guide.
Ontario Tax Sale Properties Explained
Looking for a house, condo, vacation property, vacant land, commerical property
or even an island in Ontario?
This unique book explains the tax sale property process directly from the experts.
INTRODUCTION
What is a Tax Sale Property?
History of Tax Sale Listings
Distribution of Tax Sales in Ontario
Ontario Tax Sales – The Process How the Tax Sale Process works
Sample of a Past Tax Sale Property Listing
Tax Sale Listings Explained
Researching Details
Bidding - 101
Bidding - Sample Tender Form
GENERAL QUESTIONS
Tax Sale Properties
Newbie Questions
Cancelled Auctions
Auctions vs Tender Process
Where do Tax Sales Occur
Past Results
Property Listings Timing
House vs Vacant Land
Do I need a Property Lawyer?
Prior Usage Claims
Zoning Mining Claims
Cancelled Sales
Commercial Zoning
Banks Paying Back Taxes on Mortgages
Properties Cities Not Providing Information
Tax Sale Listings
Private Lenders
Land Title Clarification
Property Details
Redeeeming
Property Violations
Title Insurance
Insurance
Legal Aid
Building Road
Roll Number
Surveyor
LIENS
Title Searches
Title on Vacant Land
Execution vs Title Search
Crown Liens
Non Crown Liens
Title / Writ Search
Strategies On Title Search Cost
More on Crown Liens
GEOwarehouse Search
When can a lien be Reigistered?
Tender Packages
Lien Holders
Cost of Title Search
Liens on Owner or Property
Mortgage Oweing
TERMS
Freehold
Natural
Resource Zone
Environmental Control
Surface Rights Only
Writ Execution vs Title Check
QR Numbers
RR and H zoning
1R Plan
BIDDING
More than one Bid
Evictions
Minimum Tender
Minimum Bid
Sending the Bid
Amount Owing
Maximum Deposit Amounts
Taxes Included in Minimum Bid
First Time Bidding
Winning Bid - Title Name
Winning a Bid
Bid on Assessed / Appraised Value
SHERIFF SALES
Liens
Forecloser / Power of Sales Properties
Capital Gains
AFTER TAX SALES
Need a lawyer?
After Tax Sales
Second Highest Bidder
What to do with my Purchase
Eviction Process
Road Allowances
New Row
Animals / Property
Insurance
Renting
Redesignation
TAX SALES AS A BUSINESS
Capital Gains Parnerships
HST Resale Vacation
Tax Sales Expenses
OTHER TAX SALE PROPERTY
SALES Sask Tax Sale Properties
United States Tax Sales
Alberta
ADVICE
Putting in a bid
Final Prices
Tax Results
Bidding
Sheriff Sales
GST / Land Transfer Tax
On the Risks of Redeeming
On what happens with Federal Liens Mining Claims
Taking the Plunge
Making Money in Tax Sales
Crown Liens
Summaries
Fears
On Bidding
Buying Buildings
Locating Properties
Additional Charges
Right of Way
Positive Words
EXPERIENCES
Experiences
Stories
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Ontario Tax Sale Property Buyer's Guide - TaxSaleProperty.org
INTRODUCTION
What is a Tax Sale Property?
What is a Tax Sale Property?
When someone doesn’t pay their property taxes for a number of years, the city or region can put the property up for auction.
These properties are available for under market value all across Ontario, Canada.
They can be had for pennies on the dollar.
Every week a new list of properties becomes available for auction.
This book will explain the process and answer all of the questions you may have.
History of Tax Sale Listings
TaxSaleProperty.org has been following tax sales since the early 2000s and has available all of the tax sale property listings since mid 2004 online.
To date there have been 1,364 tax sales since mid 2004.
From those 1,364 tax sales, there have been 6,371 properties.
Below is a breakdown of tax sale properties listed per year.
Distribution of Tax Sales in Ontario
Tax Sales are spread out throughout the entire province of Ontario.
Here are the top regions and the number of times a tax sale occurred over this period.
Municipality of Greenstone
23
Municipality of Trent Hills
22
Town of Fort Erie
21
Chatham-Kent
18
City of Welland
16
Township of Hamilton
15
Huron
14
Sudbury
14
City of Sault Ste Marie
14
Township of Muskoka Lakes
14
Township of Prince
12
Town of Marathon
12
City of North Bay
12
Manitoulin
12
Township of Seguin
11
Township of Tay
11
Haldimand
10
Toronto
10
Town of Kirkland Lake
10
Township of Ear Falls
10
Municipality of Dysart et al
10
City of Niagara Falls
10
Township of Cramahe
10
Township of Ignace
9
Township of Spanish
9
Township of North Kawartha
9
Municipality of West Nipissing
9
City of Sarnia
8
Town of Gananoque
8
City of Temiskaming Shores
8
Ontario Tax Sales – The Process
Obtaining a tax sale property is as simple as:
Step 1 – View Free Tax Sale Listings Weekly
Step 2 – Research Properties
Step 3 – Further Research
Step 4 – Bidding
Step 5 – Winning
How the Tax Sale Process works
Step 1 – View Free Tax Sale Listings Weekly:
View weekly listings of tax sale properties. Visit www.taxsaleproperty.org for free listings. Select any number of properties you may be interested in.
Step 2 – Research Properties:
You found a few properties you may be interested in.
Research the properties you are interested in. Start by viewing google maps of the property. View publicly available photos online. Consider a trip to the general area.
Tender packages are available from each municipality for each sale. Consider a tender package for under $10.00 dollars if you are moderately to seriously interested in a property. It will provide additional basic information.
Step 3 – Further Research:
You are seriously interested in a property and are almost ready
Investigate liens and outstanding claims. Most liens will be removed at the time of sale but federal liens will not. Determine what type of liens, are present on owner/property (if any).
Step 4 – Bidding:
You have researched the property and you intend of making a bid.
Determine the type of sale. The most common is a tender sale where bids are submitted before hand with the highest bidder winning the chance to complete the sale. This information is included in the original listings.
Determine your bid value. Based on your research determine a bid value you are comfortable with. Never bid more than you can afford because pulling out of a tax sale will result in your losing your initial deposit.
Get your money order (or type of payment) together and ensure it reaches the city before the cutoff dates. Consider sending in slightly more than 20% of your bid for your initial deposit.
Step 5 – Winning
You have placed a bid and you have been notified that you were success.
Congratulations on your new property. Quickly get in the remaining money you owe. Now the city can transfer title of the property to you to do as you wish. Outstanding mortgages have been removed.
Go visit your property for the first time.
Sample of a Past Tax Sale Property Listing
Tax Sale Listings Explained
Tax Sale property listings come out once a week
They could come from any municipality, city or township
They generally list the minimum bid, the address and roll number and could list additional information
Local newspapers and the Ontario Gazette will provide listings
Be careful to read the full description, it may provide warnings that will be important in the next phase
You can find free listings at: www.taxsaleproperty.org in various formats.
Researching Details
You can do simple research like looking up the address on internet, viewing online maps or looking up the assessed value of the property
Check property values of similar properties in the area to get an idea of the range of prices
Call / Email / Visit the city who is hulding the tax sales. They may have additional details on file.
With a little bit of legwork you could visit the area where the property is and try to get a better understanding of the situation. Be sure never to trespass, its better you are not seen or noticed and never talk to the owner.
You could go to pay websites that might have more information on the property such as photos
To get a full understanding it’s important to do a check if any liens exist. This must be against owners and property to ensure you have all of the details. Most liens will be removed but federal liens will not.
There was many online or in person title searchers available who can do this background check for a fraction of the rate of a full service lawyer.
DON’T BUY A PROPERTY WITHOUT DOING A SEARCH FOR LIENS. It could result in a bad purchase when all factors are taken into consideration.
Bidding - 101
Only bid what you can afford
Only submit one bid
Be sure to address the letter and money order to the correct person.
Be sure to include at least 20% of your deposit. Including more where possible.
Do not bid on the taxed assessed value of the property. This value does not line up with the actual value of the property
Many people attend in person.
If you win the bid you will forefit your deposit if you do not come up with the remaining amount of money in time. If this event occurs the second place bidder becomes the first place bidder.
Many properties don’t receive a single bid.
Bidding - Sample Tender Form
When you are bidding on a property you must submit a tender form with your bid. Below is sample of a tender form. This form can be obtained by the city holding the tax sale and the listings will have contact information on someone who can provide this. This form must be included when submitting a bid.
SAMPLE FORM
GENERAL QUESTIONS
Tax Sale Properties
Rob
Where can I find tax sale property listings?
Rob
All of the latest properties can be found at taxsaleproperty.org in different formats.
Frank
Municipalities are required to post their sales in the Ontario Gazette, and four consecutive weeks in a local paper. Many, like Hamilton don't post on the Gazette until the very end - week before the sale, while this gives us very short notice, it also eliminates a lot of redeemed properties from their ad. You will see people talking about a sale that has not been posted on this site, nor the Ontario Gazette (since that is where this site gets its info. - it is the only complete source), and that is usually because those folks are local and became aware of the sale through the local paper.
Newbie Questions
I'm a total Noob, i saw this interesting commercial on t.v. about Tax Sale Properties and decided to google it.
Well here i am...WAY over my head.
This all sounds really shady, and it sounds EXTREMELY easy to step on some very sensitive toes.
ANY tips you can give me to get my feet wet would be fantastic.
Cancelled Auctions
Frank
In fact (in Ontario at Least), municipalities are required by legislation to serve notice on all lien holders prior to a sale. Unless the property is severely impaired there is no way the banks are going to let it go for the taxes owing - they will either make a deal to increase the amount of the mortgage to pay the taxes, or they will forclose on the mortgage they have, evict the owner and sell the property themselves. Mortgage companies will only walk away if the property is worth less than what they have outstanding or what they think they can get by going through the motions.
The City of Hamilton, for example, currently has a sale underway (it will probably be in the gazette this weekend). When first advertised it had 22 properties listed, and eight of these have been cancelled
go to:
http://www.myhamilton.ca/myhamilton/CityandGovernment/CityDepartments/CorporateServices/FinanceBudgetTaxes/PropertyInformationTaxes/TaxSaleProperties20060509.htm
These people either came up with the money, or made a satisfactory payment arrangement, and the Municipality has deemed that it is financially not in its best interest to proceed with the sale. They do not want to throw people out of their homes, and they use the process to get them to come in and pay-up. In all but a few of these situations this works, and what ends up going to sale are properties that are in truly bad condition (generally), however, you do get the odd jewel that sneaks through and is worth bidding on.
Hamilton doesn't advertise in the Gazette until it has done the local advertising routine (4 weeks) in a local paper. The reduces the number of the last minute cancellations which we see in other municipalities, however it leaves folks like us with very little time to investigate the properties. When you see a tax sale advertised and it is not going to occur for a month and a half, then you could expect that a number of properties will be cancelled from the sale, - you should check the status over the phone before bothering to go and do your investigation. Don't leave it until the last minute, but if you start too early there is high probability that will waste a lot of time and money.
Auctions vs Tender Process
Lisr
Anyone know about tax sale auctions. They say you have to pay in full that day by certified chq, or cash, etc. Who carries that much cash and how can you get a certified cheque when you don't know how much you will be paying for the property you are bidding on? Who knows how this works?
royster
The tax auctions in Huron County have required you pay