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WHAT ARE TAX SALES?
Simply put, tax sales are public
auctions where properties are sold to the highest bidder.
Throughout the year, cities, towns, villages, townships and
municipalities, 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.
In spite of the municipality's
efforts to collect these taxes, they often go unpaid
and the properties are put up for
auction, allowing the public the opportunity to purchase these properties.
This is how you get real bargains. Property can be
bought for as low as 10¢ or 20¢ on the dollar. But these properties
can only be purchased by
informed buyers.
Here,
informed buyers
can buy property "free and clear" at a tax defaulted deed auction. These
taxing agencies sell property to the highest bidder in an effort to
recover the original taxes and costs due. In some cases, they recover even
less, as it is dependent on the number of interested bidders.
At the end of the day, the
only thing that the property taxing authorities care about is putting the
property into the hands of people who will pay the annual tax assessments.
Tax sale property proceeds are returned to the original owner after taxes
due and costs are deducted (unlike drug seizure property where all
proceeds are retained for drug enforcement funding). Since any profits
from these sales must be returned to the defaulting party, there is not
much motivation for the municipality to make profits on the sale.
WHY DON'T OWNERS PAY THE TAXES
DUE?
There are many reasons why properties are 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....
HOW TO BECOME AN
INFORMED BUYER?
Information makes all of the difference! By
becoming a member of the Canada Tax Sales
website, you will have access to:
1.
Listings of Tax Sale Properties being sold for delinquent taxes
and/or debts.
2.
Sheriff sales (property seized by local authorities)
3.
Bank foreclosure sales.
4.
Municipal sales.
The Canada Tax Sales Website includes
listings for Municipal Sales
across
Canada
and is updated as listings become available (usually twice a month).
Our Tax Sale advertisements are gathered directly from Municipal and
Financial sources and are always current.
As the site is updated, you will receive an e-mail notifying you
that new advertisements are available.
WHAT TYPES OF PROPERTIES ARE SOLD?
Tax sale properties can be found in every province. They can include
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.
HOW DO YOU BUY TAX SALE
PROPERTIES?
First you have to know where
and when the sales will take place, then ...
There are two ways in which tax authorities sell
properties: either by public auction or public tender, with
sealed/closed bids.
Public Auction*
This format is similar to other auction formats.
An auctioneer accepts bids from several bidders and then recognizes the
highest bidder as the winner. The place, date, and time of the
auction will be clearly defined by the municipality and can be found in
the auction advertisement on our website.
YOU DO HAVE TO BE
PRESENT TO BID IN THIS TYPE OF AUCTION!
If you are the highest bidder,
you will be required to pay the amount bid and any applicable land
transfer tax to the auctioneer by money order, bank draft or certified
check.
Public Tender*
If you wish to submit a tender, you can ordinarily obtain a tender form
from the municipal office, which will be identified in the sale
advertisement on our website. Your submitted tender should be accompanied
by a deposit, usually 20 percent (but specified by the sale advertisement)
of the tender amount, in the form of a money order, bank draft or
certified check.
Your tender form, along with the deposit, should be enclosed in a sealed
envelope, which is labeled as "tax sale for" and a short description or
municipal address of the property to indicate which property the tender is
for. Then, enclose that envelope in a second envelope, addressed to the
treasurer of the municipality, as indicated in the sale advertisement and
on our website.
At the end of the last day posted for receiving tenders, the envelopes,
which were stamped with the appropriate receipt date and time, are opened
by the treasurer at a public location in the presence of at least one
person who did not submit a tender. All tenders that do not meet the
minimum tender amount, do not have the required deposit or are otherwise
invalid, are discarded.
The two highest tenders are retained and the person who submitted the
highest will usually have fourteen calendar days to pay the balance of the
amount tendered. If applicable, the second highest bidder will be
contacted.
* Please note that the processes described
in this advertisement are intended to give an approximation of what you
can expect at a tax sale auction or tender. If there is a property you
wish to bid on, our website will contain complete contact information in
order for you to follow-up on the listing.
Click here to join a discussion group, and learn more about tax sales

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Refund
Policy
Our desire is to provide a service that
saves our members time. We provide these tax sale lists to our
subscribers and organize the information so that it is easy to search
through and in one place. We believe that, in the right hands, this
information can be very useful to investors wanting to purchase
real-estate through nontraditional means. We have found that purchasing
real-estate at auction can save a buyer a lot of money.
However, we also realize that this
information is not for the average person. There is a lot of work that
goes into performing good due-diligence on a property to insure there are
no additional liens on a property. Additionally, the auction lists
generally contain information that is difficult for the inexperienced
reader to understand. Most properties are listed by their legal
description and require subscribers to contact the taxing authority to
obtain the physical address. Most cities and towns have a GIS or
Geographical information System that will convert this information and
allow you to see the tax assessed values, recent sales, retail value, and
ownership history. Otherwise this information must be looked up manually
or through the tax assessor’s office computers.
For this
reason, our refund policy is very liberal. We have no desire to take
money from people that do not have a use for our service. We purpose to
provide information that our subscribers will use and benefit from.
Here is our
refund policy:
·
Full refund of the Membership fee within 24 hours notice.
·
Partial refund of the membership fee available for up to 5 days as
follows:
o
2nd day 80%
o
3rd day
60%
o
4th day 40%
o
5th day 20%
·
Full refund of the monthly subscription fee if cancellation is done within
2 days of last billing.
You are able to cancel your subscription at
any time and there is no minimum commitment. Additionally, prior member
are able to re-subscribe to the list without having to pay the membership
fee again.

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