Tax Sale procedure in Caledon-Ontario

Tax Sales are not typical real estate transactions. If you are considering participating in a tax sale, it is highly recommended that you seek independent legal advice from a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada.

In addition, it is not permitted to enter upon a property that is advertised for tax sale. These are not typical real estate transactions. Entering upon a property advertised for tax sale proceedings is considered to be trespassing.

A tax sale is the process followed by a municipality to recover unpaid property taxes through the sale of the property in arrears. Properties become eligible for the initiation of tax sale proceedings once they become three years in arrears.

A Tax Arrears Certificate indicates that the property will be sold if the “Cancellation Price” is not paid within one year of the registration of the certificate. Once a certificate has been registered, partial payments cannot be accepted.

The Town shall advertise the property for sale for non-payment of taxes if the “Cancellation Price” is not paid within one year of registration of the certificate. Advertisements are generally published in the Caledon Enterprise for four consecutive weeks and the Ontario Gazette for one week.

Tender packages for advertised properties are available for sale at the Town of Caledon Customer Service Department located on the first floor of Town Hall.

Legislation regarding the tax sale process is found in the Municipal Act, 2001 including Ontario Regulation 181/03.

Tax Sales are not typical real estate transactions. If you are considering participating in a tax sale, it is highly recommended that you seek independent legal advice from a lawyer licensed to practice in Ontario and in good standing with the Law Society of Upper Canada.

Tenders must be submitted in the prescribed form and must be accompanied by a deposit in the form of a money order or of a bank draft or cheque certified by a bank or trust corporation payable to the municipality and representing at least 20 per cent of the tender amount.

The municipality makes no representation regarding the title to, Crown interests or any other matters relating to the lands to be sold. Responsibility for ascertaining these matters rests with the potential purchasers.

Sales are governed by the Municipal Act, 2001 and the Municipal Tax Sales Rules made under that Act. The successful purchaser will be required to pay the amount tendered plus accumulated taxes, HST if applicable and the relevant land transfer tax.

The municipality has no obligation to provide vacant possession to the successful purchaser.

Frequently Asked Questions

How do I find out what Caledon properties are currently advertised for tax sale?

All tax sale properties will be advertised for four weeks in the Caledon Enterprise and for one week in the Ontario Gazette.

Can I visit a property that is listed for tax sale?

No – you cannot legally enter onto a property that is advertised for tax sale. This is not a typical property sale – The Town does not “own” the property in a tax sale and the current property owner on title may still be occupying the property. Entering onto a property advertised for tax sale proceedings is considered to be trespassing.

How do I obtain a tender package?

Tender packages are available for a nominal fee at the Customer Service counter at Town Hall, 6311 Old Church Road, Caledon ON L7C 1J6.

When does a tender have to be submitted by?

The date of closing for each public tender will be listed on the sale of land by public tender form which is included in the public tender package as well as in any advertising of the property for sale by the Town. Please refer to this notice for the deadline of submission specific to each property.

Is there a deposit that must be made at the time of submitting a tender?

Yes, a deposit must accompany any tender submission. The deposit must be at least 20 per cent of the tender bid amount.

What are the acceptable forms to make the required deposit in?

Deposits must be in the form of a money order, bank draft or cheque certified by a bank or trust corporation. The deposit must be made payable to the “Town of Caledon”. Please do not submit cash.

What is the Minimum price that the municipality will sell a tax sale property for?

The minimum price is the minimum tender amount shown on the Sale of Land by Public Tender form. This amount represents the property taxes outstanding on the property and any costs associated with the tax sale process.

Any submissions of tender less than this price will not be accepted.

If my bid is successful, when is the rest of the purchase price required to be paid?

If your bid is successful, you will be notified by the Town. Within 14 days of this notification, the remaining balance of the tender amount must be paid along with any land transfer tax, HST and any accumulated property taxes.

When is the closing date?

The closing date for the tender is listed on the tax sale advertisement and tender package and is specific to each property being advertised.

Who wins a tax sale public tender?

After reviewing the tenders, the Treasurer will reject all but the two highest of the remaining tenders. The Treasurer will then notify the highest tenderer by ordinary mail sent to the address shown in the tender. The highest tenderer then has 14 days to pay the balance of the amount tendered, the applicable land transfer tax and the accumulated property taxes by money order, bank draft or certified cheque to the Treasurer. If the payment of the balance is not paid, the deposit will be forfeited to the municipality and the second highest tenderer will be offered the land.

How do I complete the tender package?

Instructions on how to complete the tender package are included with the package. These instructions must be followed explicitly in order for the tender bid to be valid. There is a form that must be completed in which the bidder submits their bid amount. A deposit of at least 20% must accompany the tender package. Please do not submit cash as your deposit. Your tender must be submitted in a sealed envelope, addressed to the Treasurer. In each tender package, there is a pre-addressed envelope. Please use this provided envelope to submit any bids.

May I submit tenders on more than one land parcel or property?

Please submit separate bids in separate bid envelopes for each property you wish to place a bid on. Please do not combine bids in one form or envelope. Any combined bids in one envelope will be rejected.

How can I submit my tender?

You can submit your tender in person at the Customer Service counter at Town Hall or by courier or by mail. Please keep in mind that your tender must be received by the Treasurer on or before the time and date indicated in the advertisement for tax sale. If your tender is received late, it will be rejected. Rejected tenders will be returned following the tender closing date.

What if I submitted a tender but would like to withdraw it?

A tender may be withdrawn if the tenderer’s written request to have the tender withdrawn is received by the Treasurer before 3:00:00 p.m. local time on the last date for receiving tenders. The envelope containing a withdrawn tender will be opened at the time of the opening of the sealed envelopes.

Can the Town cancel a tax sale?

Yes, a tax sale can be cancelled by the Treasurer at any time before a tax deed or notice of vesting is registered on title. This means a tax sale can be cancelled before the tender opening or even after the tender is closed.

Does the municipality make any representations in a tax sale?

No. The municipality makes no representation regarding the title to a property or any other matters relating to the lands to be sold. The property may be worth much more or much less than the minimum tender amount. It is the tenderer’s responsibility to do their own research before submitting a tender on a tax sale property.

What if I submit a tender and win, but do not pay the balance within the time specified?

If your tender is accepted and you do not pay the balance of the tender amount owing on time for any reason, your deposit will be forfeited to the municipality in accordance with Provincial legislation. The second highest non-rejected bidder will then be notified of a winning bid.

Why was my tender rejected?

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