Claiming proceeds of a tax sale paid into court

[PG]

Municipalities are required to pay the proceeds of a tax sale, minus the cancellation price, into court.

Within one year of the tax sale, any claimant may make a claim to receive the money that has been paid into court (this is usually the previous property owner) or anyone such as CRA who has a lien on the property. If no claimant comes forward, the money is paid to the public trustee.

Question:
I haven't searched case law on this yet, but has anyone who purchased a tax sale property made a successful claim for the remaining money paid into court?

For example, the cancellation tender amount of a tax sale is $10,000; your winning tender is $100,000. Question: Can you successfully claim the remaining $90,000 paid into court on the grounds that no one else has claimed the funds and that you have improved the property and should be entitled to the excess proceeds?

 I suspect that the only chance of this happening would be if there were no other claimants for the excess funds and that you made the argument that you had paid the municipality what it was lawfully owed but that you were claiming the remaining balance as no one else had made such a claim.

Any thoughts greatly appreciated.

[baller50]

ive read somewhere that the tax sale purchaser CANNOT make a claim.... i may be wrong..

One of the Veterans can probably chime in on this

[Dave2]

ive read somewhere that the tax sale purchaser CANNOT make a claim.... i may be wrong..

One of the Veterans can probably chime in on this

I believe the original property owner is the only member of the general public who can make a claim but I maybe mistaken on that.  

Heard some time ago from one of the Municipal Tax Sale officials that the provincial government has a standing claim against any and all overpayments if unclaimed.  This claim is superior to any municipal claim.  This came in response to my comment that they would make more money on the remainder then the original tax sale amount.  Don't know if it is true but I have no reason to doubt it.  And of course Mr McGinty needs the money.  

And of course if they had the misfortune to owe money to other government agencies like Canada Revenue Agency there will be other claimants.   

[landbaronofthenorth]

Subsection 380(6) of the Municipal Act states: 
"If no person makes an application under subsection (4) within the one-year period referred to in that subsection, the amount paid into court under subsection (2) shall be deemed to be forfeited,

(a) to the Public Guardian and Trustee if, at the time of the registration of the tax arrears certificate, the land was vested in the Crown because of an escheat or forfeiture under the Business Corporations Act or the Corporations Act; or

(b) in any other case, to the municipality." {emphasis added}

This can be a "money-maker" for the municipality in respect of any amounts in excess of the minimum amounts in certain situations. 

http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_01m25_e.htm

[Pfm1011]

Application of proceeds
380. (1) The proceeds of a sale under section 379 shall,
(a) firstly, be applied to pay the cancellation price;
(b) secondly, be paid to all persons, other than the owner, having an interest in the land
according to their priority at law; and

(ie crown then  mechanics/contractor  liens then mortgage lender ( yes contractor/mechanics  liens have priority over mortgages)  then unsecured creditors such as parties with executions against owner)

(c) thirdly, be paid to the person who immediately before the registration of the tax deed
was the owner of the land. 2001, c. 25, s. 380 (1).


and the winner cannot claim the proceeds..If you could it would be pretty easy to win