Understanding mortgages, liens, executions, and other legal factors that affect tax sale properties.
Property titles are legal documents that establish ownership rights. In tax sales, understanding title issues is crucial because you're acquiring property through a legal process that may not clear all existing claims.
Tax sales generally provide good title, but they don't guarantee perfect title. Some interests may survive the tax sale process, and understanding these is essential for making informed investment decisions.
Understanding how different types of mortgages and liens are affected by tax sales is crucial for assessing the true cost and risk of your investment.
| Type of Charge | Typical Result in Tax Sale | Risk Level | Action Required |
|---|---|---|---|
| First Mortgages | Usually extinguished | Low | Verify in title search |
| Second Mortgages | Usually extinguished | Low | Verify in title search |
| Construction Liens | May survive if recent | Medium | Check lien dates carefully |
| Judgment Liens | Usually extinguished | Low | Verify judgment details |
| CRA Liens | May survive | High | Legal advice essential |
This guide provides general information only. Tax sale law is complex and varies by province. Always consult with a qualified real estate lawyer before making significant investment decisions based on title issues.