What happens if?

[Sasha]

What happens if the previous owner destroys the property just before the sale (day of)?  What happens if the previous owner destroys the property after the sale but before the 14 days left to pay off the rest of the bid?  When may a person purchase insurance on the property?  Do we lose our deposit if we don't want a demolished property?
In 2006 there was a property in Mississauga, a nice house, divorced couple, the wife lived in the home and never paid property taxes after the divorce, it was in tax arrears.  The previous owner is now in jail since he purchased explosives and blew up the home either before or just after the sale.  The only info. I've been able to find is that he is on trial right now.

Sasha

[Pfm1011]

Im guessing you have no legal rights as you dont own it yet, Legally you are bound to the deal, ie lose the deposit ,  but odds are you could walk with your deposit under such an extreme situation.

[Dave2]

Sasha brings up a good point as to when does the Tax sale wining Purchaser start to have an ownership interest . 

I believe in a regular real estate transaction once there is a binding offer of purchase
and sale with no conditions ;but prior to close, the purchaser starts to have rights.
Not certain the full extent of these rights but the seller does not have the right to make a material change in conditions.

We had a case in the local county similar in that a buyer bought a property with valuable standing timber which the seller after the firm offer to purchase logged.  I believe the Seller was criminally charged for fraud or alternatively sued privately or both.   

In the case of tax sale question is do we have comparable or some rights with the exception of owner's right to redeem by payment prior to title registration? 

Dave2
 

[Rob]

I would think it may be difficult to get insurance unless you have the deed registered in your name.  You could sue to regain losses caused by damage in a tenant situation. 

[Pfm1011]

Of course sueing someone who is so broke that they cant afford to pay the taxes might not work out too well,,,except for the lawyers who are paid in advance ..


Seriously though, If you do win a property , you should hand deliver the final payment and drop by the land and walk it one more time prior to paying in full to make sure you didnt miss anything or nothings changed, Its one thing to walk away from the deposit, whole different thing to walk from the full payment.

[Sasha]

I'm interested in the Red Lake property (36 Blende) and live nearby (45 min. away).  The property appears a little run down and is currently occupied.  Neighbours have all told different stories.  According to the city of Red Lake, the property is currently tenanted with the tenants 'squatting' and not paying rent to owner who in turn hasn't paid his property taxes.  The city informed me that they do not require to provide 'vacant posession' and although the tenants are aware the property is being sold and is in tax arrears, they refuse to leave and are staying.  Does this mean that I'd have to get a court order to evict the tenants?  Do the tenants have any rights to stay? 
I almost wonder is the owner not paying the taxes is to try and get the tenants to pay their rent, although if the owner pays of the remainder at the last minute it'll be more than just the taxes accumulated, he'll have to pay advertising fees etc..

Sasha