Technical Question

[RichD]

Hey all,
Does anyone know if there is any kind of a rule that says you can't put more then one tender in on the same property? I know this may seem like a strange question, but if mathematical it makes sense to put a higher and lower bid in on the same property in the hopes that your lower bid is the 2nd highest bid and you back out of your higher bid and add the 20% you lost on the higher bid to your lower one and still pay less then the original higher bid? Does this make seance? Example

High bid 20,000          Low bid        14,000
20%=     4,000          add lost 20%   4,000
                               Total             18,000
                                you save         2,000  If your lowest bid turned out to be enough to win

[lonewolfsek]

I thought of that myself awhile ago. I do believe you are only allowed to submit one tender. But one quick way around that is for you to get a family member or friend submit one for you.

[RichD]

Ya, I thought about that to. Thanks, but I was just wondering about the actual rules with submitting more the one tender

[danfreedom]

The regulations don't specifically prevent such strategies, and indeed, it is quite clever.  The regulations require that each tender relate to one piece of land, not vice versa.

Nonetheless, the Treasurer does have some leeway if he/she thinks what you've done is unfair:

      22.  (1)  If the treasurer is of the opinion that it is impractical to complete a sale under the Act or to do so would be unfair to the bidders or tenderers, the treasurer may cancel the sale and conduct a new sale under the Act.  O. Reg. 181/03, s. 22 (1).

This is not legal advice.  If you would like legal advice, you'll have to pay my retainer.  ;0)

[Frank]

Dan (I assume)

You are quite correct in that the legislation does not prevent such a scam.   If I were conducting the sale and had two bids that I thought were from the same bidders under this kind of scenario - and the high bid was frustrated in favour of the lower one, I would immediately cancel the sale.  The deposit on the high bid would have to be returned of course.  The secret to pulling this off would be to have two bids in different names from different addresses, etc.. 

Net result of course is that since no one else wanted it for the difference in  price, you could go in with one bid on the second sale and presumably get it for less than you were going to pay on the first one.   Talk about a win-win.

[ErnestBidder]

 I can hardly keep up with the properties I'm interested in as it is, so I see it as a huge waste of time. These ideas assume that there is no bidder between your two bids. If there is, you've done the work for nothing. If a second sale is generated for that particular piece of property, it allows for new, more interested bidders, plus, of course, doing all the work over again, and allowing time for the owner to change their mind. I'd rather take my best shot & go on to other business if not successful.  (Unless I've been doing it and it works! Another psych job?)    :>))

[Frank]

I agree with you totally, and I wouldn't waste my time on such a plot. 

My point was simply that it can legally be done, but if found out you will suffer the wrath of the tax collector.

Keep on trucking.

[speedfreeksteve]

That brings up another question in my mind.

Does the winner bidder have to have the title put in their name or can they pass it on to a family member when registering the property?

[danfreedom]

I believe you can direct the Treasurer to put it into anyone's name, provided of course that person consents.