Tax Sales
Properties with three years of outstanding taxes are auctioned to the highest bidder with a starting price set at the outstanding taxes plus a 5% administration charge. Once the auction is adjourned, the successful bidder must pay the full bid price for the the property by cash or a certified cheque, no later than 4:00pm on the sale date.
Once payment has been made, a tax sale charge will appear on the title. The existing owner has one year to redeem the property by paying the total outstanding charges and interest costs. When the owner redeems, the City will return the initial purchase price plus all interest paid by the original owner to the bidder, and the tax sale charge will be removed from the title.
It is important to note that, rarely will properties, with improvements, change hands as a result of the tax sale. Original owner have the right to redeem the property within 1 year after the tax sale date. The only benefit to the bidder is usually a reasonable return for their money. By law, the current property owner must pay the bidder interest. The interest rate is set by the Province pursuant to section 11(3) of the Taxation (Rural Area) Act. The current interest rate is 6.00% and will be adjusted quarterly, inline with interest trends.
The 2012 Tax Sale will take place in Richmond Council Chambers at 10:00 am, Monday September 24, 2012.
