A tender submission must be accompanied by a deposit of at least 20% of the tender amount. For example, if you are tendering $5,000, your deposit must be a minimum of $1,000. If you don't provide a deposit of 20% or more, your tender will be rejected. The deposit must be submitted as a bank draft, money order, or certified check from a bank or trust corporation. Certified checks from credit unions are typically rejected.
Yes, you can withdraw your tender by sending a written request to the municipality treasurer, but it must be received before the advertised tender date and time. Once the tender opening has occurred, you cannot withdraw your submission. If you're the successful bidder and don't complete the purchase, you may forfeit your deposit.
A tax sale cannot be cancelled after a tax deed or notice of vesting has been registered on the title (naming the municipality as the new owner). However, the municipality treasurer can cancel a tax sale at any time prior to this title change. This might happen if the property owner pays all outstanding taxes and costs before the deed is registered.
"Inactive" status means the tax sale has been completed or cancelled and is no longer available for bid or tender. This could happen because the property was successfully sold, the owner paid the outstanding taxes, or the municipality cancelled the sale for other reasons. Once a property is inactive, it cannot be bid on.
Costs & Taxes
Accumulated taxes are property taxes that accrue between the advertisement date and when you pay the full tender amount, typically at 1.25% interest per month. For example, if the minimum tender is $10,000 and you pay two months after advertisement, you'd owe an additional $250 (1.25% × $10,000 × 2 months). Any property tax installments that become due during this period are also added to accumulated taxes.
Yes, HST/GST must be paid at the provincial rate unless: (1) there's a residential building on the property that has been sold before, or (2) you're an HST/GST registrant who can self-assess. Tax rates vary by province: Alberta 5%, BC 12%, Ontario 13%, Atlantic provinces 15%, etc. You must provide documentation to the municipality if claiming an exemption.
Land Transfer Tax varies by province and property value. In Ontario: 0.5% on first $55,000, 1% on $55,000-$250,000, 1.5% on $250,000-$400,000, and 2% over $400,000. For example, a $20,000 purchase would incur $100 in land transfer tax (0.5% × $20,000). Toronto has additional municipal land transfer tax. Other provinces have different rates and calculation methods.
Assessed Value is the value placed on real estate by municipal assessors for property tax purposes, usually updated annually. Potential Revenue is the difference between the assessed value and the minimum bid amount. For example, if a property has an assessed value of $50,000 and a minimum bid of $5,000, the potential revenue is $45,000, representing the possible value opportunity.
Legal & Documentation
It's crucial to update your title search on the day of the tax sale to discover any new registrations that occurred since your initial search. For example, the Canada Revenue Agency might have registered a mortgage that would survive the tax sale, or an expropriation order could reduce the land you're purchasing. These new interests could significantly impact your investment.
This language may remain on your title after the tax deed is registered. If the execution is in favor of the Crown (government), it won't be removed until you pay the Crown interest and get written confirmation of removal. For non-Crown executions, contact the land registry office a few weeks after your deed is registered to request removal, though results aren't guaranteed.
Essential research includes: property title search for liens and encumbrances, zoning restrictions, environmental concerns, property condition (often limited inspection opportunities), comparable sales in the area, redemption rights of the original owner, municipal bylaws, utility connections, and potential renovation costs. We strongly recommend working with a real estate lawyer and conducting as much due diligence as possible within the constraints of the tax sale process.
About Tax Sale Compass
Tax sale properties are real estate properties sold by municipalities to recover unpaid property taxes. When property owners fail to pay taxes for a specified period (typically 1-3 years depending on the province), municipalities can legally auction these properties. The process varies by province, but generally involves public notice, registration requirements, and a public auction where the property is sold to the highest bidder above the minimum bid (usually the amount of unpaid taxes plus costs).
We update our database daily by monitoring municipal websites and official sources across Canada. Our automated systems track changes in property status, auction dates, and new listings. However, we always recommend verifying information directly with the relevant municipality before making any investment decisions, as tax sale processes can change quickly and municipalities may have last-minute updates.
Requirements vary by province and municipality. Some jurisdictions allow non-residents to participate in tax sales, while others may have restrictions. Additionally, foreign buyers may be subject to additional taxes or regulations depending on the province. We recommend checking with the specific municipality and consulting with a Canadian real estate lawyer familiar with foreign ownership rules in your target area.
We offer different subscription tiers to meet various needs. Our basic free account provides limited access to property listings and general information. Premium subscriptions include full access to our property database, advanced search filters, detailed property information, alerts, and mapping features. Contact us for current pricing and to discuss which plan best fits your investment goals.
Still Have Questions?
Can't find the answer you're looking for? Our support team is here to help.