Ontario Tax Sale Property Forum
Tax Sale Forum => Questions and Answers => Topic started by: Seirra on September 12, 2005, 08:17:21 PM
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I am a real newbie to tax sales. Does anyone know how the minimum tender figure is arrived at? Initially, I thought it was the amount of outstanding taxes owing on the property, but after reading tax sale notices it seems that the buyer is responsible for paying all due taxes on top of the amount he tenders. Is that right or am I confused ???
Seirra
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The minimum bid posted by the Municipality includes all taxes and costs of conducting the sale (advertising, admins fees, etc.) to that point in time. However, the taxes for example may have only been posted for a portion of the year to the point of the sale. If for example the sale occurs in February and no taxes have been levied yet, then there will be an added amount for January and February that you will be required to pay-up on closing.
As to how much to bid. It is really a 'crap shoot' and you must decide what the property is worth potentially to you. I have seen properties that are worth plenty go for the minimum bid....I have also seen properties go for more than their market value (obviously that person knew something about the potential of that property that no one else, or on the other hand knew nothing about the property and had more money than brains).
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"The minimum bid posted by the Municipality includes all taxes and costs of conducting the sale (advertising, admins fees, etc.) to that point in time. However, the taxes for example may have only been posted for a portion of the year to the point of the sale. If for example the sale occurs in February and no taxes have been levied yet, then there will be an added amount for January and February that you will be required to pay-up on closing."
That makes total sense. Thanks for clearing that up
Seirra