Ontario Tax Sale Property Forum
Sheriff Sales / Foreclosures => General Discussion => Topic started by: Dave2 on August 28, 2014, 11:43:42 PM
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"Any idiot can buy Tax Sales, the truth comes when you sell them"
Paraphrasing a saying that originates in the stock market, the truth comes when you have to sell them.
Like most tax sales my priority was to get the deed registered in
a rush to confirm ownership. Recently in a sale closing something came back that could have bit me but fortunately in this case I was helped by my always capable lawyer. Like most people I normally do not have my tax sale deed reviewed by my lawyer when presented by the town in my rush to get it registered.
The property in question was purchased at a tax sale and after usual enhancements I placed it for sale which worked fine until it came time for the legal work on close.
The deed contained a phrase that had wording similar to "subject to debts .........". At the time of purchase I didn't think much of it because the debts were non government and were therefore extinguished by the tax sale. BIG MISTAKE because my lawyer informed me that by failing to have the phrase stricken from the deed I now remained liable for the debts which were incurred decades ago.
My lawyer informed me that the only solution was to get the town's lawyer to remove the phrase in this case by working to convince the register or the lawyer who handled an estate decades ago. Whether the originating parties are still practicing or even alive is questionable.
It ended okay (I have not seen my bill yet) because I have a very capable lawyer who is both smart and very experienced and well connected in the local legal profession. I also have the advantage of more volume then people might realize.
Bottom line is check your deed when you take possession and check it carefully and possibly have a legal professional review it before final acceptance. In this case if I was unable to remove the phrase it may have placed my ability to sell the property in danger.
It is fair to say that tax sale titles may not always be clean.