Tax Sale Auctions vs. Tenders

[lisr]

Anyone know about tax sale auctions. They say you have to pay in full that day by certified chq, or cash, etc. Who carries that much cash and how can you get a certified cheque when you don't know how much you will be paying for the property you are bidding on? Who knows how this works?
Thanks.

[Frank]

Anyone know about tax sale auctions. They say you have to pay in full that day by certified chq, or cash, etc. Who carries that much cash and how can you get a certified cheque when you don't know how much you will be paying for the property you are bidding on? Who knows how this works?
Thanks.

The payment you make on the sale date is the deposit amount - same as the tender process.  Don't get caught up in the heat of the auction.  Figure out how high you want to go on the property and get a bank draft for the deposit amount of your max..  Then if you get it for less you are in luck.  --- no, don't carry that much cash on you at any time.   You should confirm this with the auctioneer prior to the sale date.

[royster]

The tax auctions in Huron County have required you pay full amount of sale at time of auction. So if you think your max bid would be 15,000. Bring a certified cheque for 15,000. If you win the property for less, they pay you back the difference at the time of sale.  It is a pain because you have to tie up a lot of cash ( even if it is only for a short time )

[Frank]

The tax auctions in Huron County have required you pay full amount of sale at time of auction. So if you think your max bid would be 15,000. Bring a certified cheque for 15,000. If you win the property for less, they pay you back the difference at the time of sale.  It is a pain because you have to tie up a lot of cash ( even if it is only for a short time )

My mistake, the Municipal Act Tax Rules (regulations) do require full payment at the time of the sale - including any additional charges to your bid, so make sure you bring extra cash along. 

"16.  The highest bidder shall be declared to be the successful purchaser if the bidder immediately pays the amount bid, the applicable land transfer tax and the accumulated taxes, in cash, to the auctioneer. O. Reg. 181/03, s. 16."

[Pawel]

Frank,

Is this process of paying everything up front now standard? It was my understanding that the full payment could be made within a short time after the bid was won. So more or less I want to know if this case is applicable to all municipalities or just the ones that choose to exercise this clause. I have won a bid before and this was not the case, as I was able to pay the rest within a 2 week timeframe (if my memory serves me correct).

[Frank]

The short answer is - no.  If you read this thread, it refers to the payment process where the sale is conducted by 'auction' only.