Property Tax Sales

This section provides information for property owners on the public auction of property due to tax sale.

What are property tax sales?

A property may be sold at tax sale if property taxes and charges are in arrears for twenty-four (24) months or more and no acceptable payment arrangements have been made.

Is notice of tax sale provided to the property owner?

If a property is subject to tax sale the owner will receive a notice from Taxation and Property Records that the property will be sold by the Province to recover the overdue taxes and interest.

If arrangements are still not made for payment within twelve (12) months of the mailing of the notice, Taxation and Property Records will send another notice within sixty (60) days, indicating that the property shall be sold.

Once seven (7) days pass from the mailing date of the second notice, the property may be sold in accordance with the Real Property Tax Act.

What is the tax sale process?

Tax sale steps include:

Search of Registry Documents:

The deed or certificate of ownership for the property is forwarded to a designated law firm, who will ensure the property is free of all claims and encumbrances.

Advertising:

Properties for sale are advertised in the local newspaper once a week for two consecutive weeks, and in two consecutive issues of the Royal Gazette.

Public Auction:

A public auction is scheduled and the date, time and place is advertised.

Any properties that are not free of overdue taxes prior to the date and time of the sale or where acceptable payment arrangements have not been made are sold.

Disbursement of Sale Proceeds:

Once the sale of the property is complete, the proceeds from the sale are disbursed in the following manner:

  1. Payment of expenses arising from advertising and sale;
  2. All tax arrears and interest that has accrued to the date of the sale;
  3. Any taxes owed to the Province by the assessed owner of the property;
  4. Any outstanding water and sewer charges owed to a municipality or municipal corporation.

Once these are paid, the remaining proceeds will go to the assessed owner.

How do municipalities get reimbursed for outstanding municipal charges?

If a property located in a municipality is advertised for tax sale the municipality can apply to be reimbursed for outstanding water and sewer charges.  Reimbursement will only occur if there are any funds in excess of amount owing to the province.

A municipality may request reimbursement by completing a Request for Payment of Outstanding Sewer and Water Charges from Proceeds of a Property Tax Sale form and forwarding the form to the law firm conducting the sale as directed on the form.

 

Disclaimer: This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.

 

Published date: 
December 9, 2016