Tax Sales

A property tax sale is the process followed by a municipality to recover unpaid property taxes through the sale of the property. Properties become eligible for tax sale once they are two years in arrears. Tax sales are governed by the Municipal Act, 2001 and Ontario Regulation 181/03 Municipal Tax Sales Rules made under that Act.

When the tax deed is registered, mortgages and liens are deleted from title except Crown Mortgages – Federal or Provincial.

1. Mortgages/Liens held by the Government of Ontario or the Government of Canada, or one of their agencies or crown corporations will remain on title.
2. The Crown retains the power to possibly seize the property and sell it to recover what is owed to them unless the debt is paid. You would need to contact the specific Government Agency to see how to pay this debt if you choose to purchase a property with a Crown Interest.

This information can be obtained by obtaining a Title Search.

It will be necessary to obtain both a Title Search which includes a search of the property (parcel register), an execution/writ search of the owner(s), and any outstanding interests that will affect the lands after the tax deed is registered.

Contact the local land registry office.

59 Lorne Ave E, Stratford, ON N5A 6S4 (807) 343-7436

Please refer to our Zoning By-Law and our Official Plan for a full list of permitted uses, setbacks, and other regulations. Contact the City’s Planning department with questions on zoning or land use.

This is the minimum amount that the municipality must receive in order to sell the property. This amount is the total of the outstanding taxes, penalty, interest, and the municipality’s costs in conducting the tax sale procedures. “Minimum Tender Amount” refers to a property that is being sold by public tender.

Not necessarily. The person who submits the highest tender or bid will be permitted to buy the property. The Minimum Tender Amount is simply the lowest amount that the municipality is allowed to accept. Any tender or bid that is received for less than that amount must be rejected by the municipality.

Shortly after receiving payment in full from the purchaser (including Land Transfer Tax, Accumulated Taxes, and if applicable, HST) the municipality will have a “tax deed” registered on title. As soon as a tax deed has been registered the purchaser becomes the owner of the property.

After a tax deed has been registered the former owner cannot redeem the property; however, before a tax deed is registered, the owner might be able to redeem the property by paying the full amount of taxes and other costs to the municipality, thereby stopping the tax sale.

Not necessarily. After a tax sale, properties are subject to any interests in favour of the Crown in right of Ontario or Canada. Tax sale properties may also be subject to other interests such as ‘easements’, ‘restrictive covenants’ and ‘adverse possession’.

Information on such interests can be obtained by obtaining a Title Search.

No, entering onto a property advertised for tax sale is trespassing. The City does not own the property. You can view the property from the road. If you venture onto the property you will be trespassing.

It will be up to you to decide what to do. Please note that the municipality is not obligated to evict people who may be living on the property. If you wish to evict people who are living there, you should consider hiring a bailiff or lawyer to handle the eviction process.

Your tender must be submitted in a sealed envelope, addressed to the Treasurer. Please use the pre-addressed envelope provided in the tender package to submit any bids. You can submit your tender in person at our Administration Office (1 Wellington St), or by mail or courier. Your tender must be received on or before the time and date indicated in the notice of tax sale. If your tender is received late, it will be rejected. Rejected tenders will be returned following the tender closing date.

A tender can be withdrawn if the tenderer's written request to have the tender withdrawn is received by the Treasurer before 3:00 p.m. local time on the closing date. The envelope containing a withdrawn tender will be opened at the time of the opening of the sealed envelopes.

We'll return all tenders that are received except the two highest tenders. Please ensure that the address and phone number you provide is written clearly so we can return your tender and deposit.

No deposit cheques will be released at the tender opening under any circumstances. Deposit cheques of unsuccessful tenderers will be returned by mail only.

Within 14 days of being declared, the successful purchaser is required to pay:

• the amount tendered
• accumulated taxes, penalties, and interest
• reasonable costs incurred by the City during the tax sale process
• HST if applicable
• the relevant land transfer tax

The deposit (required as per Ontario Regulation 181/03) is forfeited to the municipality if the transaction is not completed within the 14 days.

The City does not have this information.

The current approved rates can be found on the Municipality’s website in the latest Consolidated Fee Bylaw.

Assessment values are available by viewing the tax roll ledgers at the Municipal office. Normally, staff are not available to assist with the roll books, but the books are available for public viewing and are organized by roll number. Assessed values are provided in the roll book, along with specific property details such as size etc. To determine annual taxes you can multiply the assessed values by the appropriate tax rates which are available on the Municipality’s website.

The City does not have keys to the property and is not responsible to provide to the highest tenderer.

Yes, a tax sale can be cancelled by the Treasurer at any time before a tax deed or notice of vesting is registered on title. This means a tax sale can be cancelled before the tender opening or even after the tender is closed.

A tender may be rejected for some of the following reasons:

• the tender amount was not equal to or greater than the minimum tender amount
• the tender deposit was not provided by money order, bank draft, or certified cheque
• the tender did not relate to just one parcel or property
• the tender envelope was not sealed, or the envelope did not include on it that it is a tax sale, or it did not provide a short description or municipal address allowing the treasurer to identify what parcel or property the tender was submitted for
• the tender included a term or condition that is not allowed for under Ontario Regulation 181/03
• the tender was not accompanied by a deposit of at least 20 per cent of the tender amount
• the tender was not addressed to the treasurer or typewritten or legibly handwritten in ink.
• the tender was not submitted using Form 7
• the tender was not one of the two highest tenders

There are a number of online resources you could consult such as:

- The Municipal Act, 2001, Tax Sale Rules: https://www.ontario.ca/laws/regulation/030181

- The Municipal Property Assessment Corporation (MPAC) www.mpac.ca