Tax Sale Question for the Province of Ontario Canada

[EDDIE]

I noticed that if I purchase a Property through a Tender in the Perscribed form and win that tender their is a condition that goes like this.

-  The Purchaser is to Assume the responsibility for all Mortgages, charges , liens , outstanding Taxes,and other
   encumbrances.

-  No representation is made regarding the title of Land or any other matter relating to the interest to be sold The
   Responsibilty for acsertaining rests with the potential purchaser.

Can you guys help me on this. If I win a bid does that property become mine?, or do I have to get the sheriff / Cops out to the Property to get the owner out or , just exactly how does this work?.

[Rob]

Are you looking at a Tax Sale or a Sheriff sale?  In a tax sale all liens will be removed (aside from crown liens) in the case of a Sheriff sale.. you will be responsible for the liens/mortgages. 

[edge2]

I have a follow up question here:

In the same list of terms there is the line "The municipality has no obligation to provide vacant possession to the
successful purchaser." Now, if the property is inhabited and its not the municipality's obligation who do you call? (besides the ghost busters ) Or what do you do?

[Rob]

First you would call your lawyer, and (if legally possible, tenants may have a lease.. etc..) you would go to court to get an order to remove the people, and with that order in hand you would go to the sheriff.   There are certain rules on who and when and how you can force people to leave a home.   


Think of it as the same situation as if someone died and left you a home.  There may be legal or illegal tenants but it's your responsibility now not the person who willed the property over.

[tlewis]

In the advertisement for tax sale that a municipality publishes you?ll find the following sentence, ?The municipality has no obligation to provide vacant possession to the successful purchaser?.  That means that if there are people living on a property that you buy, it is up to you to deal with them.. 

You may want to have the people continue living there and pay you rent.  Or, you may want to evict them.  If you choose to evict them, we recommend that you contact a bailiff or a lawyer.  They can handle the eviction for you.

[edge2]

Thanks Rob and tlewis, you've both answered my question and then some.

[tml]

I had to deal with this once.  I spoke to 4 lawyers(2 real estate, 1 litigation, 1 criminal) and 2 paralegals.  They all said the people are trespassers and are illegally occupying the property, so they can be kicked out immediately or arrested. The police called the Landlord & Tenant Act Tribunal because they didn't know what to do, and they said that since there was no landlord/tenant relationship established, it did not fall under the act.  From what I've been reading on this site, eviction would be the legal way to go.  So, I still don't know... 

[farrouk]

Good luck just kicking them out. These people won't just leave and you can't physically remove them or you will be the one led away in cuffs. Thats what the bailiff is for.
Been there done that.

[Pfm1011]

Farrouk ... Since you have had to do this...Can you give us the detailed play by play and timeline..Would be very helpful

[farrouk]

My situation was not a tax sale but rather a real estate deal. The duplex was suppose to be vacant on possesion but wasn't. Thank goodness I had held back about 2 grand just in case something went wrong and it did.
The tenants were not nice people, probably dealing drugs. Since they were already advised that the building was being sold they had their 60 days notice as required at the time by the Ontario Act. We had to go through the sheriff's office  and get a removal order for immediate eviction. Then an officer of the court goes to the property and delivers an eviction notice. I believe they have 48 hours to vacate at which time we went back with the officer and they had left. The place was trashed mostly broken windows and smashed drywall but still bad enough. The whole process took about 3 weeks and cost about $300 approx.
Now in a tax sale I believe that tenant's are suppose to be advised (check statutory declarations) but if they are not add the 60 days onto the process.
Everybody's situation is different but this was how it played out for me about 10 years ago.
 

[GovGuy39]

well the meaning in plain english according to me is - if there is anyone on the property, then it is your problem to get him vacated, the seller ( county/municipal etc)  will not get it vacated for you and give you posession, seller will only give you a clear legal standing that you are the legal owner of the property.

[mpro]

just wondering how much a house would sell for? 50% of the assessmet value?

[Pfm1011]

Assessed value is not good measure as assessments are based on presumably good house and additionally if its overvalued in the assessment , no one complains.

Taxsale houses are abandoned, raccoon infested , waterdamaged ...with that in mind generally some idiot comes and pays way too much for it . If it is a house in a town in southern Ontario..forget it  no deals

Country homes and outside of GTA  there can be deals but generally you will have to perform the labour to make it a real good deal

[mpro]

Can anyone give me an example of what crown liens would be? (sorry for the ignorance)
also, if the utilies weren't paid by the previous owner, would i be responsible to pay any outstanding balances to...hydro...gas..water?

[Pfm1011]

Crown liens can be outstanding income tax, unpaid child support etc.

If the old owner doesnt pay his income tax and has a judgement against him ..lucky you get to pay it