Ontario Tax Sale Property Forum

Tax Sale Forum => General => Topic started by: sajmeri on September 27, 2008, 03:08:37 PM

Title: Why we need to do title search on same day of auction
Post by: sajmeri on September 27, 2008, 03:08:37 PM

I am little bit confused about title search recommendation for same day of the auction.

Is there any possibilities that  a day before crown lien comes in picture or any other lien pooped up in search.

Any body have any bad experience.

My understanding is all municipality and crown have kind of relations with each other, they always check with each other before they put any property for auction.

- Why should crown or any other lien holder wait to register their lien on particular property until the auction ?
- Isn't that all kind of liens registration forces particular properties to have it auction ?


thanks
Saur

Title: Re: Why we need to do title search on same day of auction
Post by: twinn1 on September 28, 2008, 05:12:19 AM

The reason you want to do a title search as close to sale day (or on the same day if you can) is to verify that their are no leins on the property.  It would be possible for a Crown agency to apply the lien to the title a few days before sale. The Crowns agency sole responsibilty is reimbursment for the monies owed to them, the possibility of the property selling is much greater if their is no lein on the title, hence much greater chance someone will purchase the property thinking their is no lein on it.  I have never heard of this happening but have limited experience with tax sales. 
The other reason it is wise to wait until close to the sale day to do a title search is that 95% of the clean properties that are worth anything get redeemed prior to the sale date, so its better to save your resources(time/money/gas etc..). 

Title: Re: Why we need to do title search on same day of auction
Post by: sajmeri on September 28, 2008, 09:39:29 PM

I read somewhere on this forum that ones property get sold  outstanding mortgage will collapse and buyer doesn't have to pay mortgage on top of winning price. Only thing he has to worry about crown lien.

However i seen following description in one of the ad.

"The purchaser to assume responsibility for all mortgages, charges, liens,
outstanding taxes, and other encumbrances. No representation is made
regarding the title of the land or any other matter relating to the interest
to be sold. Responsibility for ascertaining these matters rests with the
potential purchaser(s). "

It means if i buy one of the property in $200,000 at auction and if mortgage ($70,000) and other taxes ($10,000) are pending, I have to pay $80,000 on top of my winning price. right ?

or do i have to pay only taxes which is $10,000 as per my first comment.

I appreciate your input as i am in learning curve.

Thanks

Title: Re: Why we need to do title search on same day of auction
Post by: Pfm1011 on September 30, 2008, 04:02:49 AM

That looks like a sheriff sale...Which is different then a tax sale..