Why Buy Tax Sale Property?
In many cases these properties sell for well below market value.
The reason these properties can be sold for so much less than the 'typical' market value is that municipalities are only required to sell the lands to recover the amount of:
• All current property tax owing
• The costs associated with conducting the Tax Registration & Tax Sale
• Plus any accumulated interest or penalties
This opens the door for great potential when attempting to acquire a property at a very attractive price. There are several cases where individuals have saved themselves hundreds of thousands of dollars off the assessed value, by purchasing Tax Sale Properties.
What is a Tax Sale?
A Tax Sale is the Sale of Land by a municipality to recover the amount of property taxes, penalties and interest that are due on a tax account.
After a tax account has been in arrears long enough, municipalities will conduct a Tax Registration in an attempt to recover the delinquent taxes. After the tax registration process has been complete, municipalities will conduct a Tax Sale, as a final attempt to recover the overdue property taxes if the owner(s) have still made no efforts to bring the tax account into good standing.
The Sale of Tax Sale Property - How Does it Work?
Tax Sales are held 1 of 2 ways, either by Public Tender or Public Auction. Though, it is very seldom to see a Tax Sale by Public Auction they do still occur.
These are both procedures for generating competing offers from different tenderers/bidders.
For detailed information relating to the sale of land by public tender or the sale of land by public auction please see our 'Commonly Asked Municipal Tax Sale & Surplus Property Questions. Just follow the links below.
Learn all about buying tax sale property in Ontario from the experts at Tri-Target.com!
Learn 1 Tip at a Time - Access our extensive database of tax sale tips and tricks, as well as answers to many of our commonly asked municipal tax sale property questions.
(The comments contained on this site are for information purposes only and do not constitute any form of legal advice whatsoever.)