Tax sales in Quebec

[Mtldude]

Hi everyone,

I just found this site and I love it.

I have a question concerning property in Quebec.   For example if I buy a house through a city auction; its my understanding that the original owner has one year to reclaim the property, paying me back what I have paid plus closing fees.

In Quebec there is something called a welcome tax which everyone pays when they purchase a property.  Its based on a percentage of the appraised value.  Since I only have a precarious ownership to the property for the first year, do I have to pay the welcome tax if I bid and win the property.


Thanks

Mtldude

[farrouk]

I would contact the municipality on that one. I bet the answer is yes!
Just wondering if you try to rent out the house during the 1st year do you have to disclose to the renter that they could be kicked out by the owner if they redeem? What if the original owner pays his taxes but not your expenses, do you have to sue them? Sounds like beaucoup mal de tete. (sorry for my feeble attempt at French)

[Mtldude]

Thanks for the opinion

Thats my guess as well.

The other thing I just thought of is that if the property is residential and has renters, then under Quebec you can not evict them unless you are going to using the house for family members.

I am starting to have second thoughts about trying to do a deal in this province.

THanks

[Rob]

How would you remove a person if rent is not paid on a constant basis in Quebec? 

[Mtldude]

Rob,

You just identified the biggest bitch that landlords in quebec have.  Getting rid of a non-paying tenent (residential) is almost impossible.

The easiest way is to serve them notice of eviction and also send a copy of the letter to the rent review board saying that you will be replacing the tenents with family members.  This can take 2-6 months.

If the building isn't going to be occupied by family members, then getting rid of them can take months.  The best insurance is to have a mortgage on the building.  This way you can prove to the rent review board that you need their rent to cover the mortgage.

If you want detailed info on this, I suggest looking up the website for the rent review board.

Thanks

[Pfm1011]

In addition to having the hassle of getting them out, you are completely out of a years rent as everyone moves july 1st. So it is almost impossible to rent out something off that date.

[twinn1]

Quebec is worse then Ontario in regards to removing deadbeat tenants and that is saying a lot.  I have friends of mine that have moved out west and started buying income properties as they would never want to be landlords in Ontario, never mind Quebec.

Pfm1011 is right about July 1st its called moving day in Quebec, ever try to rent a moving van in Montreal on July 1st?  Its actually starting to change a little bit with people moving at different times on the year but I would say that at least 80% if not more still all move on July 1.

FYI, it is possible to evict non paying renters in Quebec but there judical system is even slower then ours in Ontario and the appeals process for tenants is much more favorable.

[fabiandelafuente]

I live in BC and it seems Quebec works like here to, I can tell you about BC and this may help you:

First, when you buy a Tax Sale property here in BC the previous owner has 1 year to redeem the property, time that you CANNOT TAKE POSSESSION OF THE PROPERTY BY ANY MEANS, only if it represents a treat (waste, danger, etc) you can enter and clean up, that's it, you cannot live in, paint it or do anything to the property.

If 1 year passes, still you cannot take possession of the property and begin kicking people out, you still need to wait till you are registered in the land and title office as a registered owner and then you may start the process of kicking people out, but not by your self, you must first go to the sheriff office and do some paperwork.

On that waiting period of 1 year the taxes are assigned to the previous owner, when you take possession of the property you begin from $0, that.

I hope this may clear your questions.

[Rob]

"the previous owner has 1 year to redeem the property"

Same as in Ontario, but the property never gets sold until that period has been completed (they still have the right to pay the amount owing upto the deed is registered).   Which doesn't sounds extremely unfair.  I hate the idea of having that money floating for a year



That sounds extremely difficult to get anyone to move in Quebec.  You need a member of your own family and it still could take 6 months.  That's crazy.   Best to just move on or try to find a tax sale business property