Ontario Tax Sale Property Forum
Tax Sale Forum => General => Topic started by: yakapow on April 22, 2010, 02:54:06 AM
-
Here is a question for all the lawyers and would-be lawyers out there. The recent tax sale for Ottawa required $36 for a tender package for each property someone wanted to submit a tender on.
I asked the city rep who sold me the tender package if someone could bid on any of the properties without their tender package and he said no.
My question, is this true? Regardless of the package City of Ottawa was more than happy to sell you at $36 per, wouldn't someone who wanted to put in a bid be able to simply do their regular homework, come up a with a price and submit a bid according to the Provincial rules that dictate tax sales, ie. submitted with the appropriate notation as being on PIN # blah blah, etc. etc. Can City of Ottawa add their own requirements to the process?
-
Here is a question for all the lawyers and would-be lawyers out there. The recent tax sale for Ottawa required $36 for a tender package for each property someone wanted to submit a tender on.
I asked the city rep who sold me the tender package if someone could bid on any of the properties without their tender package and he said no.
My question, is this true? Regardless of the package City of Ottawa was more than happy to sell you at $36 per, wouldn't someone who wanted to put in a bid be able to simply do their regular homework, come up a with a price and submit a bid according to the Provincial rules that dictate tax sales, ie. submitted with the appropriate notation as being on PIN # blah blah, etc. etc. Can City of Ottawa add their own requirements to the process?
$36 per property is a wee bit usurious.
Municipalities only have to advertise the sale, then accept bids...submitted in accordance with the tax sale rules set out in regulation 181/03 http://www.e-laws.gov.on.ca/html/regs/english/elaws_regs_030181_e.htm , and you correct, you don't have to buy their package to submit a bid...just use the form 7 included in the regs, and complete it and an envelope properly (or they will surely throw it out). They usually make a package available to assist people with their questions as to zoning, location, assessments, and other good things that are available to the public, and this actually saves them a lot of time in dealing with questions from the public. Other provisions of the Municipal act allow them to charge for these types of services, however they have to keep a detailed account with the Clerk as to how they arrived at these charges, this one seems a little on the high side.
the regulation states that:
6. (1) A tender shall be in Form 7 and shall be,
(a) typewritten or legibly handwritten in ink;
(b) accompanied by a deposit of at least 20 per cent of the tender amount, which deposit shall be made by way of money order or by way of bank draft or cheque certified by a bank or trust corporation;
(c) submitted in a sealed envelope which indicates on it that it is a tax sale and provides a short description or municipal address of the land sufficient to permit the treasurer to identify the parcel of land to which the tender relates; and
(d) addressed to the treasurer. O. Reg. 181/03, s. 6 (1).
(2) A tender shall relate to only one parcel of land. O. Reg. 181/03, s. 6 (2).
-
A few years ago ottawa tried addiing "closing costs" on top of your bid . They certainly are a "creative" town. I guess they need all the tax dollars to pay the bus drivers. That said , any dealings I have had with them IE presale support , I have found them very helpful and friendly
-
There are two interesting issues here. The municipality is bound to follow the procedures set out in the Municipal Act so I think that Frank is correct. There does not seem to be any right given to the Municipality to require a specific form of tender other than a Form 7.
The second issue is that it may be possible that the municipality may owe various obligations to the landowner in conducting a tax sale. Such obligations might include the duty to follow the statutory requirements, a duty to act in good faith and perhaps even a lower duty of care. If any such duties exist, the municipality may be liable for failing to meet the appropriate standard(s). So, for example, if a municipality says "you can't bid unless you pay $3,600, or $360 or perhaps $36" the landowner may have recourse against the Municipality if a potentially high bidder was discouraged from bidding. Absent fraud, however, I think that the sale itself would still be valid.
In any event, I think that a municipality is playing with fire if it makes up its own rules that are arguably contrary to the provisions of the Municipal Act.
This is all general comment and a lawyer (an ethical and competent one ;D) should be consulted regarding these matters
On a positive note, there would sure be a lot less competition if it cost $36 to bid.
-
They would be slaughtered by the winner and the old owner if they denied a winner because he didnt use a special form or didnt pay the 36. They can charge what they want for a package as it is provided as an additional service, as long as the advertisement in the papers and gazette meet the minimum requirement and they dont force you to buy the package.
This isnt the first time, and wont be the last time that a local trys to change the rules.. The good thing is that the $36 will remove many time wasters and the serious ones know we dont have to pay it..I spend thousands already for software..Im not paying them 36..
Oh wait..all you lurkers..Ignore what I said..you have to pay the 36 to bid..please move along