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Tax Sale - General Information
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- The tax sale is a public auction of properties within
a municipality which have outstanding property taxes from
2 years prior to the current year.
- The tax sale is held annually on the last Monday of September
at 10 a.m. at the council chambers in the Municipal Hall
of each municipality in BC.
- Notice of the time and place of the tax sale and the
description and street address of each property subject
to tax sale must be published in at least 2 issues of
a newspaper.
- The last publication of the tax sale must be at least
3 days and not more than 10 days before the date of the
tax sale.
- The lowest amount for which a property may be sold at
tax sale is the upset price.
- The upset price is the sum of all the property taxes
outstanding as at the date of the tax sale, plus all applicable
penalties and interest, plus an additional 5% of all taxes,
penalties and interest, plus all applicable Land Title
Act fees.
- The highest bidder above the upset price must be declared
the purchaser.
- If there is no bid, or no bid equal to the upset price,
the municipality must be declared the purchaser.
- The purchaser must immediately pay the amount of the
purchase price to the collector.
- The collector must give the purchaser a tax certificate
and promptly file the notice of tax sale at the land title
office.
- Within 3 months of the tax sale, the collector must give
written notice of the tax sale, including the day the
redemption period ends either, to the owner(s) of the
property by serving the notice or by registered mail.
- During the period allowed for redemption, a tax sale
property must continue to be assessed and taxed in the
owner's name.
- A tax sale property may be redeemed from tax sale within
1 year of the date of the tax sale by the owner of the
property, an owner of a registered charge against the
property or another person on their behalf.
- The amount to redeem a tax sale property is the sum of
the upset price, plus all costs of which the collector
has had notice that have been incurred by the purchaser
in maintenance of the tax sale property and in prevention
of waste, plus taxes advanced by the purchaser, plus prescribed
interest to the date of redemption.
- During the period of redemption, the owner retains the
right to possession of the tax sale property.
- The purchaser has the right to enter on the tax sale
property to maintain it in proper condition and to prevent
waste.
- On redemption of a tax sale property, the purchaser is
entitled to receive all amounts paid by the purchaser,
together with prescribed interest.
- If the tax sale property is redeemed, the collector must
promptly file a notice of redemption at the land title
office.
- If the tax sale property is not redeemed, the collector
must file a notice of non-redemption at the land title
office.
- Upon receipt of a notice of non-redemption by the land
title office, the property is conveyed to the purchaser
free and clear of all mortgages, charges, liens, etc.
except those imposed by a senior government (Province
of British Columbia, Government of Canada).
- In the case of non-redemption of a property subject to
the Strata Property Act, a tax sale purchaser is responsible for the payment of any outstanding strata fees and charges which must be paid to the strata corporation prior to conveyance of the property.
- The purchase of a tax sale property is subject to tax
under the Property Transfer Tax Act on the fair market
value of the property at the time of conveyance.
- During the period of redemption, the owner may bring
an action in the Supreme Court to have the tax sale set
aside and declared invalid under certain specified grounds.
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