Properties that are over three years in arrears in payment of their property taxes become eligible for the initiation of tax sale proceedings. The Municipality will register a Tax Arrears Certificate, which indicates that the property will be sold if the cancellation price is not paid in full within one year of registration. Once the certificate has been registered on title, partial payments cannot be accepted unless there is an Extension Agreement in effect.
The property owner or other individual receiving notice of the tax arrears certificate may, during the one-year redemption period, pay the outstanding taxes, interest and costs and request a cancellation of the certificate. If the Cancellation Price is not paid within one year of registration, the Municipality may then advertise the property for public sale for non-payment of taxes. Advertisements are published in the local newspaper for four consecutive weeks and in the Ontario Gazette for one week.
The process of a tax sale follows the Municipal Act which determines the timing of notices that must be sent and whether or not registered mail must be used. At each step of the process, administrative fees, legal fees, and other costs are added to the cancellation price. The process takes one year from the time the tax arrears certificate is registered on the property title to the time that the municipality can offer the property for public sale.
An Extension Agreement allows the Municipality to extend the length of time for payment of the tax arrears once the registration process has been started. A property owner may make a request to Council to enter into an Extension Agreement prior to the expiry of the one year period from the time of registration. If the property owner defaults on the agreement, the tax sale process continues from the point in time at which the Extension Agreement was entered into.
Tender packages for each property include a Property Data Sheet and Key Map and are available free of charge online or for sale at Tay Township's Municipal Office.
Please Note: Tax Sales are not typical real estate transactions. It is not the Municipality's responsibility to verify the accuracy of the data particularly since much of it is collected from the assessment records. If you are considering participating in a tax sale, it is highly recommended that you seek independent legal advice from a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada.