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ONTARIO REGULATION 181/03
made under the
MUNICIPAL ACT, 2001
Made: May 1, 2003
Filed: May 5, 2003
Printed in The Ontario Gazette: May 24, 2003



MUNICIPAL TAX SALES RULES

PART I

Interpretation and Forms


Definitions


1.  In this Regulation,


"accumulated taxes" means real property taxes that have accumulated with respect to a parcel of land from the first day of advertising of the parcel for sale by public sale until the day a successful purchaser is declared; ("impôts accumulés")

"board" means a board described in subsection 371 (2) of the Act. ("conseil")


Public sale of land


2.  A public sale of land under the Act shall be conducted in accordance with this Regulation.


Required information on documents

3.

(1)  A tax arrears certificate shall contain the information set out in Schedule 1.


(2)  A tax arrears cancellation certificate referred to in subsection 375 (2), 378 (6) or 382 (3) or (6) of the Act shall contain the information set out in Schedule 2.

(3) A tax deed and the statement of compliance related to it, as required by clause 379 (5) (a) and subsection 379 (6) of the Act, shall contain the information set out in Schedule 3.

(4)  A notice of vesting and the statement of compliance related to it, as required by clause 379 (5) (b) and subsection 379 (6) of the Act, shall contain the information set out in Schedule 4.


 
Forms

4. 

(1)  A notice required by section 374 of the Act shall be in Form 1.

(2)  A statutory declaration required by subsection 374 (3) of the Act shall be in Form 2.

(3)  A final notice required by subsection 379 (1) of the Act shall be in Form 3.

(4)  A statutory declaration required by subsection 379 (2) of the Act shall be in Form 4.

(5)  The statement required by subsection 380 (2) of the Act shall be in Form 5.


SALE BY PUBLIC TENDER

PART II

Advertisement


5. 


(1)  If the treasurer conducts a sale by public tender, the advertisement required by clause 379 (2) (b) of the Act shall be in Form 6 and the treasurer shall allow at least seven days after the publication of the last advertisement in The Ontario Gazette or newspaper or, where there is no newspaper, the posting of the notice, for the submission of tenders.

(2)  An advertisement may relate to the sale of any number of parcels of land.
Tender


6. 


(1)  A tender shall be in Form 7 and shall be,


(a) typewritten or legibly handwritten in ink;


(b) accompanied by a deposit of at least 20 per cent of the tender amount, which deposit shall be made by way of money order or by way of bank draft or cheque certified by a bank or trust corporation;

(c) submitted in a sealed envelope which indicates on it that it is a tax sale and provides a short description or municipal address of the land sufficient to permit the treasurer to identify the parcel of land to which the tender relates; and


(d) addressed to the treasurer.

(2)  A tender shall relate to only one parcel of land.


Receipt of tender


7. 


(1)  On receiving an envelope identified as containing a tender, the treasurer shall mark on it the time and date on which it was received and shall retain it unopened in a safe place.

(2)  For the purposes of this Part, where two or more tenders are equal, the tender that was received earlier shall be deemed to be the higher.


Withdrawn tender


8.


(1)  A tender is withdrawn if the tenderer's written request to have the tender withdrawn is received by the treasurer before 3 p.m. local time on the last date for receiving tenders.

(2)  The envelope containing a withdrawn tender shall be opened at the time of the opening of the sealed envelopes.


Opening of tenders


9.


(1)  The treasurer, at a place in the municipality that is open to the public, shall open the sealed envelopes containing the tenders as soon as possible after 3 p.m. local time on the last date for receiving tenders.

(2)  The sealed envelopes shall be opened in the presence of at least one person who did not submit a tender, which person may be a municipal employee.

(3)  After opening the sealed envelopes, the treasurer shall examine their contents and shall reject every tender that,

(a) is not equal to or greater than the minimum tender amount as shown in the advertisement;


(b) does not comply with section 6;

(c) includes any term or condition not provided for in this Regulation; or

(d) has been withdrawn as set out in subsection 8 (1).


(4)  After complying with subsection (3), the treasurer shall reject all but the two highest of the remaining tenders.

(5)  Every rejected tender shall be returned to the tenderer together with the tenderer's deposit, if any, and a statement of the reason for rejection.


Notice of vesting


10.  If, after complying with section 9, no tenders remain, the treasurer shall declare that there is no successful purchaser.

 
Two remaining tenders

11.


(1)  If, after complying with section 9, two tenders remain, the treasurer shall immediately notify the higher tenderer, by ordinary mail sent to the address shown in the tender, that the tenderer will be declared to be the successful purchaser if, within 14 days of the mailing of the notice, the balance of the amount tendered, the applicable land transfer tax and the accumulated taxes are paid, in cash, to the treasurer.

(2)  If the higher tenderer makes the payment as set out in subsection (1), the treasurer shall declare the tenderer to be the successful purchaser.

(3)  If the higher tenderer does not make the payment as set out in subsection (1), the tenderer's deposit shall be immediately forfeited to the municipality and the treasurer shall offer the parcel of land to the lower tenderer in accordance with section 12.


One remaining tender


12.


(1)  If, after complying with section 9, only one tender remains or if, in accordance with subsection 11 (3), the treasurer is required to offer the parcel of land to the lower tenderer, the treasurer shall immediately notify the tenderer, by ordinary mail sent to the address shown in the tender, that the tenderer will be declared to be the successful purchaser if, within 14 days of the mailing of the notice, the balance of the amount tendered, the applicable land transfer tax and the accumulated taxes are paid, in cash, to the treasurer.

(2)  If the tenderer makes the payment as set out in subsection (1), the treasurer shall declare the tenderer to be the successful purchaser.


(3)  If the tenderer does not make the payment as set out in subsection (1),

(a) the treasurer shall declare that there is no successful purchaser and may register a notice of vesting in the name of the municipality; and

(b) the tenderer's deposit shall be immediately forfeited to the municipality. 


 

SALE BY PUBLIC AUCTION
PART III

Advertisement


13.


(1)  If the treasurer conducts a sale by public auction, the advertisement required by clause 379 (2) (b) of the Act shall be in Form 8 and the treasurer shall allow at least seven days after the publication of the last advertisement in The Ontario Gazette or newspaper or, where there is no newspaper, the posting of the notice, before holding the auction.

(2)  The auction shall be held at such place in the upper-tier municipality or single-tier municipality or, in the case of unorganized territory, in the territorial district in which the land is located as the treasurer may name in the advertisement.


(3)  An advertisement may relate to the sale of any number of parcels of land.


Auctioneer


14.


(1)  The treasurer or such other person as the treasurer may name shall act as auctioneer.

(2)  The auctioneer shall open the auction by declaring the tax sale officially open and by reading out sections 15, 16, 17 and 18.


Duties of auctioneer


15.  For each parcel of land to be sold during the auction, the auctioneer shall,

(a) in opening or reopening the bidding on the parcel, state the minimum bid as set out in the advertisement;

(b) acknowledge each bidder, repeat each bid made and call for higher bids; and

(c) if no higher bid is made, repeat the last bid three times and if there is still no higher bid, acknowledge the highest bidder.


Highest bidder is purchaser


16.  The highest bidder shall be declared to be the successful purchaser if the bidder immediately pays the amount bid, the applicable land transfer tax and the accumulated taxes, in cash, to the auctioneer.


Failure to pay


17.  If the highest bidder fails to make the payment as set out in section 16 and the bidding has not been previously reopened under this Regulation, the auctioneer shall immediately reopen the bidding.


No bids


18.  If no bid is made for a parcel of land after the opening of the bidding or if, after the reopening of the bidding under section 17, no bid is made or there is no successful purchaser, the auctioneer shall declare that there is no successful purchaser.


Receipt


19.  The auctioneer shall issue a receipt to the successful purchaser for the amounts received under section 16 and the receipt shall include a legal description of the parcel of land and the name of the purchaser and the name in which the tax deed will be registered.


Auction closed


20.  The auctioneer shall declare the auction closed upon completion of the bidding on all the parcels of land offered for sale in the auction.

List

21.  The auctioneer shall prepare and keep a list showing each parcel of land offered for sale in the auction and the name and address of the successful purchaser or, where there is no successful purchaser, that there is no successful purchaser.


GENERAL

PART IV

Cancellation of sale



22.


(1)  If the treasurer is of the opinion that it is impractical to complete a sale under the Act or to do so would be unfair to the bidders or tenderers, the treasurer may cancel the sale and conduct a new sale under the Act.

(2)  If the treasurer cancels a sale by public tender, the treasurer, if he or she has not already done so, shall open the sealed envelopes and return the tenders to the tenderers together with the appropriate deposits, if any, and a statement setting out the reason for the return and, if the sale is cancelled after the opening of tenders, the treasurer shall return any tenders he or she retains and any deposits related to them to the tenderers together with a statement setting out the reason for the return.


Registration


23.  As soon as possible after a successful purchaser is declared in a sale under the Act, the treasurer shall prepare and register the necessary documents in accordance with the Act.


Condition


24.  Before registering a tax deed or a notice of vesting in respect of land that is in a local municipality referred to in Schedule 2 to Regulation 995 of the Revised Regulations of Ontario, 1990, the treasurer shall obtain a statement in Form 9 signed by an authorized employee of the Ministry of Northern Development and Mines.


Method of payment


25.  Subject to clause 6 (1) (b), any payment required by this Regulation to be made in cash may be made by way of cash or money order or by way of bank draft or cheque certified by a bank or trust corporation.


Forfeited funds


26.  All deposits forfeited under this Regulation to a municipality shall form part of the general funds of the municipality.


Transition


27.


(1)  If a tax arrears certificate in respect of vacant land has been registered in accordance with clause 3 (1) (b) of the Municipal Tax Sales Act before January 1, 2003, the proceedings in respect of the sale of that land may continue even though the period in which the tax arrears were owing before the registration of the certificate may be less than the period specified in subsection 373 (1) of the Municipal Act, 2001.

(2)  If subsection 388 (3) of the Act applies in respect of the registration of a notice of forfeiture, the notice of forfeiture shall be in Form 13 of Regulation 824 of the Revised Regulations of Ontario, 1990, as that regulation read on December 31, 2002.


 
Revocation

28.  Regulation 824 of the Revised Regulations of Ontario, 1990 is revoked.

 

(The comments contained on this site are for information purposes only and do not constitute any form of legal advice whatsoever.)









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