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Announcement: Acquiring Tax Sale properties in Canada

Secrets of Super Wealthy Professional Real Estate Investors part 1 of 10

Many provinces in Canada levy property tax on Real Estate based upon the current use and value of the land and this is the major source of revenue for most municipal governments in Canada. While property tax levels vary between municipalities in a province there is usually common property assessment or valuation criteria laid out in provincial legislation. The municipality has the right to collect property taxes owing even if they have to sell the property to recuperate the property taxes owing. These properties are never listed on MLS or Real Estate Brokers. This is another secret of super wealthy Professional Canadian Real Estate Investors and or Apprentices to acquiring Tax Sale properties in Canada.

Acquiring Tax Sale properties in Canada

The secret of super wealthy Canadian Professional Real Estate Investors and or Apprentices have used this secret to build huge wealth. The city or municipalities are not required to sell these properties at market value, instead they sell them for the amount of taxes owing. This way the Professional Real Estate Investors can buy a property for 10 cents a dollar. The key is to learn the act, law and the process to find and finance them and than make a great fortune.

Acquiring Tax Sale properties in Canada

What is a Canadian Property Tax Sale

Simply put, tax sales are public auctions where properties are sold to the highest bidder.  Throughout the year, cities, towns, villages, townships and municipalities, in each province, compile a list of properties against which taxes have been outstanding for at least two consecutive years.  After this two year period, the municipal treasurer prepares a tax arrears certificate and registers it against the property in question.

This certificate gives an accurate description of the property and indicates that the land will be sold by public sale if all taxes are not paid to the municipality within one year of the registration of the certificate.

In spite of the municipality's efforts to collect these taxes, they often go unpaid and the properties are put up for auction, allowing the public and the super wealthy Canadian Professional Real Estate Investors and or Apprentices the opportunity to purchase these properties and this is how you get real bargains.  Property can be bought for as low as 10 cents on a dollar.

Professional Canadian Real Estate Investors and or Apprentices can buy property "free and clear" at a tax defaulted deed auction. These taxing agencies sell property to the highest bidder in an effort to recover the original taxes and costs due.

 Why the Canadian Property Owners don’t pay their Property taxes?

There are many reasons why properties are sold for non-payment of taxes. Some of the most common ones are financial difficulties, law suits, ignorance, death of an owner (with no apparent will or heir), owner living abroad and not realizing his/her obligations, owner moved and cannot be traced, disputes of ownership with no party resorting to the courts for settlement, etc....

How to become a Professional Canadian Real Estate Investor and/or Apprentice

Proper education and training makes all the difference!  By becoming an Apprentice of World Wealth Builders and a member of the Professional Canadian Real Estate Investors and or Apprentices website, you will have access to: 

  1. Current Listings of Tax Sale Properties being sold for delinquent taxes
  2. Sheriff sales (property seized by local authorities)
  3. Canadian Grants

The Property Tax Sale advertisements are gathered directly from many different sources including the websites of the city and the provincial courts. 

What kind of properties get SOLD In Canadian Tax sales

They can include vacant lands (such as bush lots and timberland), improved lands (such as farms, cottages and houses), commercial or industrial properties, and occasionally islands. They vary from small lots to large parcels, with hundreds of acres. 

How do the Professional Canadian Real Estate Investors and/or Apprentices BUY these properties at basement bargain prices

First you have to learn the proper law, act and its implementation including the exemptions. Proper education, training and knowledge in order to obtain where, when and how to do it is mandatory unless otherwise you want to buy a lemon....

There are two ways in which tax authorities sell properties: either by public auction or public tender, with sealed/closed bids.

Public Auction for Canadian Tax Sale Properties

This format is similar to other auction formats.  An auctioneer accepts bids from several bidders and then recognizes the highest bidder as the winner.  The place, date, and time of the auction will be clearly defined by the municipality and can be found in the auction advertisement on our website.

If you are the highest bidder, you will be required to pay the amount that was bid and any applicable land transfer tax to the auctioneer by money order, bank draft or certified check.

Public Tender for Canadian Tax Sale Properties

If you wish to submit a tender, you can ordinarily obtain a tender form the municipal office, which will be identified in the sale advertisement on our website. Your submitted tender should be accompanied by a deposit, usually 20 percent (but specified by the sale advertisement) of the tender amount, in the form of a money order, bank draft or certified check.

Your tender form, along with the deposit, should be enclosed in a sealed envelope, which is labeled as "tax sale for" and a short description or municipal address of the property to indicate which property the tender is for. Then, enclose that envelope in a second envelope, addressed to the treasurer of the municipality, as indicated in the sale advertisement and on our website.

The above article provides general commentary of an educational nature. It does not constitute advice for any specific person or any specific set of circumstances. Because circumstances vary, readers should consult professional advisers in order to obtain advice that is applicable to their specific circumstances.

Your success is our Passion!

Power Of Sale Notice Requirements

Recipient Of Power of Sale Notice Ontario

In Ontario Real Estate Investing, under the Mortgage Act Section 31, it is stipulated that a notice of power of sale must be given to every party appearing by the registered of ownership and by the index of executions to have interest of the mortgage property.

The recipient of the notice of power of sale should be given to the following parties:

Continue reading Power Of Sale Notice Requirements

Canadian Tax Sale Properties

A tax sale is the sale of a property by municipal or government tax authorities in cases where the owner has failed to pay the outstanding property taxes.

Canadian Tax Sale Properties

The sale can be held by public auction, by public tender or by sealed bids.

Usually, the successful purchaser acquires nearly immediate clear title and immediate possession of the property. On occasion, the purchaser's right to possession of the property is postponed in order to enable the delinquent taxpayer a specified period of time in which to repay the tax.

There are risks involved, but Professional Real Estate Investors who do their research are assured of returns on their investment, depending on the property. Very few legal investments can beat this guarantee. The proceeds of the sale are used to pay the unpaid taxes and other expenses that were incurred in listing the property. The balance, if any, is usually given to the delinquent taxpayer.
Occasionally, when taxes due on a property remain unpaid, the tax authority may sell, at public auction, a "lien" obtained against the delinquent taxpayer's property.

Canadian Tax Sale Properties

The successful bidder can subsequently convert this lien into ownership of the property if the sums due are not paid by the delinquent taxpayer within a specified redemption period. Professional Real Estate investors are aware of the risk and know that previous owner can redeem the property.
Each city, county, town, village, township and municipality in each province has their own way of dealing with tax defaulted property sales. Proper education can be key to the goldmine.

Simply put, tax sales are public auctions where properties are sold to the highest bidder. Throughout the year, cities, towns, villages, townships and municipalities, in each province, compile a list of properties against which taxes have been outstanding for at least two consecutive years. After this two year period, the municipal treasurer prepares a tax arrears certificate and registers it against the property in question.

This certificate gives an accurate description of the property and indicates that the land will be sold by public sale if all taxes are not paid to the municipality within one year of the registration of the certificate.

In spite of the municipality's efforts to collect these taxes, they often go unpaid and the properties are put up for auction, allowing the public the opportunity to purchase these properties. This is how you get real bargains. Property can be bought for as low as 10cents or 20cents on the dollar. But these properties can only be purchased by informed educated Professional Real Estate investors.

WHAT TYPES OF PROPERTIES ARE SOLD IN TAX SALES IN CANADA?

Tax sale properties can be found in every province. They can include vacant lands (such as bush lots and timberland), improved lands (such as farms, cottages and houses), commercial or industrial properties, and occasionally islands. They vary from small lots to large parcels, with hundreds of acres.

HOW DO YOU BUY TAX SALE PROPERTIES IN CANADA?

First you have to know where and when the sales will take place, then you can proceed. There are two ways in which tax authorities sell properties: either by public auction or public tender, with sealed/closed bids.

WHY DON'T OWNERS PAY THE TAXES DUE IN CANADA?

There are many reasons why properties are sold for non-payment of taxes. Some of the most common ones are financial difficulties, death of an owner (with no apparent will or heir), owner living abroad and not realizing his/her obligations, owner moved and cannot be traced, disputes of ownership with no party resorting to the courts for settlement, etc...

Most tax deed sales are by competitive bid. Many Provinces only have one sale per year, Ontario has sales every month. Sheriffs may also conduct sales. In general, Canada tax sales have fewer properties than US tax sales because the Provinces can be fairly lenient on property owners. Each province handles sales differently. Tax sales are often conducted in the largest cities. You can learn more by taking Real estate Millionaire Strategies Apprenticeship (REMSA)

World Wealth Builders offers many unique, practical, out of the box real estate investor apprenticeships which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. To find out more, please go to www.WorldWealthBuilders.com

The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case.

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Canadian Tax Sale Properties

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