Who can pay overdue taxes?

[ChrisCentral]

Recently, I have come across a situation where a tax sale was cancelled by the treasurer; the new tax deed does not indicate who paid the overdue taxes; my lawyer has done some digging and was able to find out that the redeemer who paid the overdue amount was not the rightful owner? 

Any experience in these situations?

Can someone other then the rightful owner, a mortgagee or a lien holder pay the taxes to stop a sale?

[christinemcd]

Not sure myself but I am certain town would not care as long as they get their money

[Rus]

if there is a mortgage owed, the bank would pay it off and then go through foreclosure proccess and sell it to get their money back

[ChrisCentral]

Plausible but I know the payee was not a lender or owner.

[netpred]

Recently, I have come across a situation where a tax sale was cancelled by the treasurer; the new tax deed does not indicate who paid the overdue taxes; my lawyer has done some digging and was able to find out that the redeemer who paid the overdue amount was not the rightful owner? 

Any experience in these situations?

Can someone other then the rightful owner, a mortgagee or a lien holder pay the taxes to stop a sale?

I am not sure of what happened, but if a tax sale was cancelled, there would be no tax deed. A tax deed is only registered after a tax sale.

Please clarify.

[ChrisCentral]

Sorry Netpred you are correct it was not a tax deed - I should have said tax certificate.

[Dave2]

Sorry Netpred you are correct it was not a tax deed - I should have said tax certificate. 

Chris: 

I have seen unrelated third parties; usually a real estate agent pay a tax bill if it is small and the equity in the property is large. While the municipality will accept your payment  I am not certain if there is a proper receipt except a general payment receipt to the unrelated payee although they credit it to the property.

Concievably in a case like this it is treated as an advance on the listing agreement payment as the property was listed shortly thereafter.

 

[ErnestBidder]

  I would think anyone can pay taxes on anyone else's property: the municipality isn't going to ask questions. I'm thinking I may let my taxes go unpaid, if I can find a generous and successful taxsale bidder looking for a tax receipt. :>)) ( l like to make my own smilies)

  I haven't been on in quite a while, other than as a lurker, so am going to pass out some karma, something I usually don't remember until I've logged off.

  Merry Christmas to all.

[netpred]

  I would think anyone can pay taxes on anyone else's property: the municipality isn't going to ask questions. I'm thinking I may let my taxes go unpaid, if I can find a generous and successful taxsale bidder looking for a tax receipt. :>)) ( l like to make my own smilies)

  I haven't been on in quite a while, other than as a lurker, so am going to pass out some karma, something I usually don't remember until I've logged off.

  Merry Christmas to all.

I think that you're onto something. I too will stop paying taxes so that some kind soul (Dave?) will pay my taxes during this season of giving. I figure the beer that I am owed will take care of about a year of taxes or so.

And Karma to you too.

[Frank]

It is actually quite normal for mortgagees to come in and pay the back taxes.  Their mortgage documents usually have provisions that require the property owner to maintain their taxes and utilities in good standing, and even to provide insurance prove to the mortgagee.  When they do so, they acquire a higher interst in the property and are put into a forclosure mode, talk to your lawyer.  It would be totally inane for a Joe off the street to walk in and pay somebody's taxes as they would be out of pocket with absolutely nothing to show for their troubles.

[Dave2]

I think that you're onto something. I too will stop paying taxes so that some kind soul (Dave?) will pay my taxes during this season of giving. I figure the beer that I am owed will take care of about a year of taxes or so.

And Karma to you too.  

That is why sometimes I feel so incompetent in this business.  I can't even guess the right level for the winning bid the majority of the times  and guys like Netpred or this guy   can pursuade the treasurer to accept payment in beers.  

Problem for me is compounded by the fact that local treasurers have premium tastes.  Churchkey beer is not cheap.

[ChrisCentral]

So after more digging the person who paid the tax bill was not a lender or a lien holder or the owner.
My only guess is that the payee's interest is in the property for themselves - what a weird thing to do?
I assume they paid off the tax bill with the intention of purchasing from the rightful owner?
This is such a strange situation?

Is there anything in the municipality act that could restrict this from happening?

I guess I need to go searching through it to see what I can find.

[ruok]

Now you are getting into an extremely hot topic that has been discussed on many occasions in the past.
Most of us are in agreement that you should never,ever approach an owner in order to purchase prior to the tax sale. It causes a breakdown of the system and nobody wins in the end. You and I might see the importance of that but there is always someone that doesn't get it and tries to work the system to their own benefit.

[Frank]

So after more digging the person who paid the tax bill was not a lender or a lien holder or the owner.
My only guess is that the payee's interest is in the property for themselves - what a weird thing to do?
I assume they paid off the tax bill with the intention of purchasing from the rightful owner?
This is such a strange situation?

Is there anything in the municipality act that could restrict this from happening?

I guess I need to go searching through it to see what I can find.

It wouldn't be just anybody who feels they need to come to a strangers rescue.

Possibly a relative, who has now been elevated in their position vis-a-vis the will, there will no doubt be a lien registered against the property now. 

Or, heaven forbid, one of us who approached the owner with an offer to purchase....with the deposit being used to cover the outstanding taxes...I suspect that is what happened to me last summer in Nobel.  One of these days I will drop into Parry Sound registry office and find out just who it was, and when I find out their name will be exposed for all the world to see, I will get my pound of flesh. 

[netpred]

Frank:

Yours was a bad one to lose. If the property was a bit further south, there would have been no need for the municipality to wait to deal with the sub-surface issues. You had a lot of things go wrong for you and I completely get it.    It was the culmination of a lot of unfortunate events.

In this case, however, it looks like a 3rd party bailed out the owner. I hope that person had the brains to protect themselves by registering a mortgage. Can you imagine paying 3 years of taxes plus penalties on a promise by a deadbeat owner? If the deadbeat didn't pay their taxes, the deadbeat is not likely to play fair with the "saviour".

So after more digging the person who paid the tax bill was not a lender or a lien holder or the owner.
My only guess is that the payee's interest is in the property for themselves - what a weird thing to do?
I assume they paid off the tax bill with the intention of purchasing from the rightful owner?
This is such a strange situation?

Is there anything in the municipality act that could restrict this from happening?

I guess I need to go searching through it to see what I can find.

It wouldn't be just anybody who feels they need to come to a strangers rescue.

Possibly a relative, who has now been elevated in their position vis-a-vis the will, there will no doubt be a lien registered against the property now. 

Or, heaven forbid, one of us who approached the owner with an offer to purchase....with the deposit being used to cover the outstanding taxes...I suspect that is what happened to me last summer in Nobel.  One of these days I will drop into Parry Sound registry office and find out just who it was, and when I find out their name will be exposed for all the world to see, I will get my pound of flesh.