Ontario Tax Sale Property Forum

Sheriff Sales / Foreclosures => General Discussion => Topic started by: zm_271 on July 24, 2012, 12:32:53 AM

Title: Does construction lien carry forward with tax sale?
Post by: zm_271 on July 24, 2012, 12:32:53 AM

Does construction lien carry forward with tax sale?

Is it good to buy property with construction lien?

Title: Re: Does construction lien carry forward with tax sale?
Post by: Pfm1011 on July 26, 2012, 02:06:25 AM

A construction lien by a private firm  does not survive a tax sale

Title: Re: Does construction lien carry forward with tax sale?
Post by: netpred on July 26, 2012, 03:51:23 AM

This has been answered numerous times  ::).

Now of course if Her Royal Highness decided to earn some extra cash by doing drywall work, her lien would survive a tax sale.

Title: Re: Does construction lien carry forward with tax sale?
Post by: Frank on July 26, 2012, 10:19:22 AM

Quote from: zm_271 on July 24, 2012, 12:32:53 AM

Does construction lien carry forward with tax sale?

Is it good to buy property with construction lien?

Unless you were the fool that bid $200,000 on this one, it is now a mute point.  The lien would not survive the sale, however it does place him in priority position to claim the excess proceeds.  Kind of an interesting one as he is a part owner in a family trust.  It would appear that he did all the shoddy work and his partners won't give him a pound of flesh.

He apparently called the town an hour before the sale, which I expected he would, and will be coming in today to make good on the taxes.

He now has an interesting dilemma, his attempts to sell it on the market have been fruitless, now he has an opportunit to take the proceeds and run.  Decisions, decisions. 8)

Title: Re: Does construction lien carry forward with tax sale?
Post by: zm_271 on July 26, 2012, 06:13:55 PM

Thanks for confirming.

I tried to search many places, read on few forums, known websites and asked search performer, land registry, Town, and lawyer. But none of them confirming clearly, the lien will wipe out with Tax Sale.


Finally I got through and read on Ontario Laws website under Municipal Act.

http://www.search.e-laws.gov.on.ca/en/isysquery/1dde119c-75c3-413e-8dd5-4f2a84c85ab1/7/doc/?search=browseStatutes&context=#BK447

Refer point 379. (7)  Effect of conveyance


Above link clearly shows that, the property will get free from all interest except  CROWN Interest (lien).  


I believe many people knew it, that's why BID went up to 200K.

Title: Re: Does construction lien carry forward with tax sale?
Post by: 26.2 on July 26, 2012, 11:48:06 PM

So zm_271. Are you the lucky bidder?? If so congrats.
BTW like Netpred said, if you search this website you will find answers regarding all facets of TS.

Title: Re: Does construction lien carry forward with tax sale?
Post by: zm_271 on July 27, 2012, 10:27:47 AM

I did not bid. As I was not sure about lien issue.
I am Very new to tax sale process.
So it will take some time to ramp up.
Thanks...