The term Accumulated taxes refers to the property taxes that have accumulated from the date the property was first advertised for tax sale until the day the purchaser pays the final balance due to the municipality treasurer (including land transfer tax, HST and accumulated taxes.)
An interest in favor of the Canadian government is known as a Crown interest. It is critical that you are aware of any Crown interests in a property you would like to purchase at a tax sale, as any interest in favor of the Crown will continue to affect the property after the sale. This means that if the previous owner had an execution in favor of the Crown and you don’t satisfy that interest by paying the Crown what is owed, they could seize the property and sell it, costing you the property and whatever you just paid for it. The best way to know whether there are any Crown interests in a property is to get an up-to-date title search report and execution report.
An easement is a right to a part or all of a property granted to a person or entity other than the owner. A power company may have an easement over a property to maintain power lines. There is also an easement called a “right of way.” which might entitle others to have a right of way over a portion of someone else’s land in order to access something it abuts such as a lake or other body of water. An up-to-date title search report will provide you with information about any easements on your prospective property.
This is a report that provides information about a piece of land. It will include information about the owner, if there are any mortgages, easements or restrictive covenants or any other interests affecting it. It will also provide information about any surveys registered on the title.
A judgment issued by a court against another person or corporation and then filed with the local Sheriff’s Office is called an execution. This execution will say that the person owes a certain sum to another party referred to as the Execution Creditor. It is critical to know if the Execution Creditor is the Crown because you will be obligated to pay the amount owed if you choose to purchase the property.
When a piece of land is sold, a Land Transfer Tax is owed to the municipality. This amount will then be paid by the municipality to the provincial government when the tax deed is registered.
For purposes of this discussion on tax sales, we will define a municipality as a city, town, township, village, regional municipality or county that is hosting a tax sale.
Restrictive covenants are restrictions on the way land may be used and they will continue to affect the land after a tax sale. Title Search Reports will be able to provide information on any restrictive covenants that may apply to your land. Examples of restrictive covenants include prohibitions on building fences or using the land as a slaughterhouse.
Crown interests on property may include Business Development Bank of Canada mortgages liens for arrears of income tax or HST remittances among many others.
Title Search Report provides information about a piece of land. It will include information about the owner, if there are any mortgages, easements or restrictive covenants or any other interests affecting it.
When a tender is submitted for the purchase of a tax sale property, there must be absolute compliance with the Municipal Tax Sales Rules and the Municipal Act. There are many reasons a tender might be rejected.
