Government-seized property refers to assets that have been listed for sale by municipality departments due to violations of tax laws or regulations.
These seized properties are sold through public auctions or tenders, which are open to the general public. The sales process is overseen by the municipality treasurer or finance department to ensure fairness and transparency and to ensure that properties are sold at fair prices, supporting the overall goal of justice and security. Property auctions provide access to a range of real estate assets often sold by a government below market value.
1. Tax Sales Hub online platform lists properties for sale. It allows you to browse various listings.
2. Local municipalities publish sale listings on their official websites or local newspapers.
Thorough preparation is key to a successful purchase:
Review photos and descriptions and consider any available appraisals to understand the property value. You are NOT allowed access to it.
Check Outstanding Liens or Encumbrances. The title search report will include all the information you need.
Compare the auction price with the asset's market value to ensure you get a good deal.
Understand the redemption period, if any.
Understand the sale terms.
Set a clear budget and ensure you can immediately cover the full cost if you win.
On the day of the auction, follow the bidding process.
If you’re the highest bidder, there are a few steps to take:
• Complete Payment.
• Transfer of Ownership if there is no redemptions period.
• Consider your next steps once you own the property.
A very strong advantage of purchasing a property at tax sale is the ability to acquire a property at a price vastly below market value. Municipalities conducting tax sales need to recoup the amount of taxes plus penalties.
Since the tax sale is a public event, others will likely be submitting tenders. The person with the highest tender will be permitted to purchase the property. Your deposit should be at least 20% of the full amount.
Tax Sales in Ontario have insane profit potential and have brought big breaks for investors in Ontario and elsewhere. But you still need a thorough understanding of the process and a solid and time-tested approach for your big wins.This ultimate guide will help point you in the right direction!
