Ontario: Time for default owner to redeem?

[bearowski]

Hi,

Have run into some ambiguity regarding the length of time  the default owner has to redeem should a property be sold to tender or auction

Thanks in advance for any clarity regardding this.

B

[Frank]

This was the subject of much debate until a coupla years ago (in Ontario).  There was a court case in which it was ruled that until the tax deed is actually registered in your name, the old (defaulting) owner still owned it (it is still in his name at the Registry until you are registered as the owner) and he was able to pay up the taxes owing, at that point the municipality is to cancel the sale and give you back your money.   That is the reason you want to come up with the balance of funds real fast and get them to register the deed in your name - don't give the defaulter any more time than they have already had to redeem their property. 

In some other provinces (Quebec for example), the old (defaulting) owner has a year to pay up, and in those case the amount he has to pay are no longer the taxes owing, but the amount that you bid - he essentially can rebuy it from you (the successful bidder) for the amount you paid.  During tht time-frame it would not be in your best interest to spend any money improving the property since that would be lost.

[bearowski]

Thanks for the heads up on that Frank.

Therefore, by paying the balance ASAP,  is the  LAwyer then able to complete the transfer of Title/Deed etc..? Or might there be other reason for delay?  Thgis important for any improvements considered.

B

[Frank]

Once the sale is held, the Treasurer will then review all bids to ensure that none should be tossed out and make a final determination as to who the winning (and second) bid was from.  All other bid deposits are then returned to the bidders. 

The Treasurer will then inform you in writing that you have two weeks to come up with the balance of funds - and the exact amount payable (there will be additional taxes accrued as well as GST - if applicable, and land transfer tax).  You don't need a lawyer to complete the transaction as the Municipal agent will do all the paperwork. 

Once you have come up with the balance of funds (this is the part that I suggest you not delay in, and in fact pressure the Treasurer for a final figure ASAP), the Town's agent/solicitor will prepare the necessary land transter tax affidavit which you must sign.  You should find out when this will be ready and make a trip there to sign it if you can rather than wasting time with courier services - again time delays in getting the deed registered gives the old (defaulting) owner more opportunity to waltz in and pay the taxes - resulting in a cancellation of the process and you've lost the property.

Once you have turned over the money and signed the papers, all you can do is wait.  Regular phone calls to the Treasurer's office or their agent will also assist at this point in ensuring that your purchase doesn't get lost in a sea of paperwork, and that the tax deed gets registered in your name expeditiously.   Don't harrass them, and don't tell them that I told you to do it, but be a pain in the neck - the squeaky wheel gets the grease.

[bearowski]

Frank,

Thank you for your time in relaying this information....  Really appreciate it...

B