Before You Bid on a Nova Scotia Tax Sale Property

Important: This guide is for informational purposes only and does not constitute legal advice. Always consult with a qualified Nova Scotia real estate lawyer before participating in a tax sale auction.

1. Buyer Beware - Do Your Homework

Tax sale properties are sold "as is, where is" with no warranties or guarantees.

  • Municipality makes no representations about property condition or value
  • Property may be worth more or less than the minimum bid
  • All sales are final - no refunds, returns, or exchanges
  • You are responsible for all due diligence

2. No Property Access

You cannot enter the property before the sale.

  • Drive-by viewing only (from public street)
  • No interior inspections or site visits
  • Do not trespass - it is illegal

3. No Vacant Possession

You will not receive keys or immediate access after winning the bid.

  • Current occupants may still be living there
  • You must handle eviction process through courts
  • Eviction process can take several months
  • Budget for legal fees and potential property damage

4. Title Search is Essential

Order a title search from NS Registry of Deeds to identify liens and encumbrances.

  • Municipal taxes: Cleared by tax sale
  • Canada Revenue Agency liens: Survive the sale
  • Mortgages: Usually cleared, but verify redemption period
  • Easements & restrictions: Remain on title
  • Building violations: May transfer to new owner

5. Redemption Period (Nova Scotia Specific)

CRITICAL: Former owner has 6 MONTHS to redeem the property!

  • After winning bid, former owner can repay all amounts and reclaim property
  • This period lasts 6 months from date of sale
  • You cannot sell, renovate, or mortgage during this time
  • You may need to maintain property but cannot occupy it
  • If redeemed, you get your money back but lose investment opportunity
  • Consider this when calculating returns on investment

6. Zoning and Building Permits

Research municipal regulations before bidding.

  • Check current zoning and permitted uses
  • Review outstanding building permits or violations
  • Verify legal conformity of existing structures
  • Check for development restrictions or heritage designations

7. Environmental Liability

You assume all environmental risks and cleanup costs.

  • Former gas stations, dry cleaners = high contamination risk
  • Oil tanks, asbestos, lead paint
  • Environmental assessment recommended for commercial properties
  • Cleanup can cost tens of thousands of dollars

8. Legal Advice is Crucial

Hire a Nova Scotia real estate lawyer before bidding.

  • Review title search and explain implications
  • Advise on 6-month redemption period risks
  • Handle deed registration after redemption period expires
  • Assist with evictions if needed

9. Payment Requirements (Nova Scotia Specific)

Nova Scotia uses TWO different sale methods with different payment rules:

Public Auction (In-Person Bidding)
  • Full payment due IMMEDIATELY at auction
  • Highest bidder must pay entire purchase price on the spot
  • No deposit option - full funds required
Public Tender (Sealed Bid)
  • No deposit required when submitting tender
  • Payment due: 3 days from notification of winning bid
  • Full purchase price must be paid within this 3-day window
  • Have funds ready before submitting tender
Acceptable Payment Methods (Both Types)
  • Cash
  • Certified cheque
  • Money order
  • Bank draft
  • Lawyer's trust cheque

Per Nova Scotia Municipal Government Act

10. Nova Scotia Tax Sale Process

Public Auction Process
  1. Municipality publishes list (6-8 weeks before)
  2. Attend auction in person at specified location
  3. Bidding begins at minimum bid amount
  4. Highest bidder wins
  5. Pay FULL purchase price immediately
  6. 6-month redemption period begins
  7. If not redeemed, receive deed after 6 months
Public Tender (Sealed Bid) Process
  1. Municipality publishes list with tender deadline
  2. Submit sealed bid (no deposit required)
  3. Municipality opens all bids on specified date
  4. Only the winning bidder is notified (losing bidders are not contacted)
  5. Pay FULL purchase price within 3 days of notification
  6. 6-month redemption period begins
  7. If not redeemed, receive deed after 6 months
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