MUNICIPAL TAX SALES RULES ONTARIO REGULATION 1

[Navtaj Chandhoke]

MUNICIPAL TAX SALES RULES ONTARIO REGULATION 1

Municipal Act, 2001

ONTARIO REGULATION 1

81/03

MUNICIPAL TAX SALES

RULES

Consolidation Period:

From January 1, 2007 to the

e

–

Laws currency date

.

Last amendment: O.Reg. 580/06.

PART I

INTERPRETATION AND F

ORMS

Definitions

1.

In this Regulation,

parcel of land from the first day of advertising of the parcel for sale by public sale until the

day

Reg. 181/03,

s.

1.

Public sale of land

2.

A public sale of land under the Act shall be conducted in accordance with t

his Regulation.

O.

Reg. 181/03, s.

2.

Required information on documents

3.

(1) A tax arrears certificate shall contain the information set out in Schedule 1. O.

Reg.

181/03, s.

3

(1).

(2) A tax arrears cancellation certificate referred to in subsection

375 (2), 378 (6) or 382 (3) or

(6) of the Act or subsection 22 (2) of this Regulation shall contain the information set out in

Schedule 2. O.

Reg. 181/03, s.

3

(2); O.

Reg. 580/06, s.

1.

(3) A tax deed and the statement of compliance related to it, as req

uired by clause 379 (5) (a)

and subsection 379 (6) of the Act, shall contain the information set out in Schedule 3. O.

Reg.

181/03, s.

3

(3).

(4) A notice of vesting and the statement of compliance related to it, as required by clause 379

(5) (b) and subs

ection 379 (6) of the Act, shall contain the information set out in Schedule 4.

O.

Reg. 181/03, s.

3

(4).

Forms

4.

(1) A notice required by section 374 of the Act shall be in Form 1. O.

Reg. 181/03, s.

4

(1).

(2) A statutory declaration required by subs

ection 374 (3) of the Act shall be in Form

2. O.

Reg.

181/03, s.

4

(2).

(3) A final notice required by subsection 379 (1) of the Act shall be in Form 3. O.

Reg. 181/03,

s.

4

(3).

(4) A statutory declaration required by subsection 379 (2) of the Act shall

be in Form

4. O.

Reg.

181/03, s.

4

(4).

(5) The statement required by subsection 380 (2) of the Act shall be in Form 5. O.

Reg. 181/03,

s.

4

(5).

(6) A notice required by subsection 380.1 (2) of the Act shall be in Form 10. O.

Reg. 580/06,

s.

2.

PART I

I

SALE BY PUBLIC TENDE

R

Advertisement

5.

(1) If the treasurer conducts a sale by public tender, the advertisement required by clause

379 (2) (b) of the Act shall be in Form 6 and the treasurer shall allow at least seven days after

the publication of the

last advertisement in

The Ontario Gazette

or newspaper or, where there is

no newspaper, the posting of the notice, for the submission of tenders. O.

Reg. 181/03, s.

5

(1).

(2) An advertisement may relate to the sale of any number of parcels of land. O.

Re

g. 181/03,

s.

5

(2).

Tender

6.

(1) A tender shall be in Form 7 and shall be,

(a) typewritten or legibly handwritten in ink;

(b) accompanied by a deposit of at least 20 per cent of the tender amount, which deposit

shall be made by way of money order or by

way of bank draft or cheque certified by

a bank or trust corporation;

(c) submitted in a sealed envelope which indicates on it that it is a tax sale and provides

a short description or municipal address of the land sufficient to permit the treasurer

to id

entify the parcel of land to which the tender relates; and

(d) addressed to the treasurer. O.

Reg. 181/03, s.

6

(1).

(2) A tender shall relate to only one parcel of land. O.

Reg. 181/03, s.

6

(2).

Receipt of tender

7.

(1) On receiving an envelope identi

fied as containing a tender, the treasurer shall mark on it

the time and date on which it was received and shall retain it unopened in a safe place. O.

Reg.

181/03, s.

7

(1).

(2) For the purposes of this Part, where two or more tenders are equal, the tend

er that was

received earlier shall be deemed to be the higher. O.

Reg. 181/03, s.

7

(2).

Withdrawn tender

8.

received by the treasurer before 3 p.m. local time on

the last date for receiving tenders. O.

Reg.

181/03, s.

8

(1).

(2) The envelope containing a withdrawn tender shall be opened at the time of the opening of

the sealed envelopes. O.

Reg. 181/03, s.

8

(2).

Opening of tenders

9.

(1) The treasurer, at a pl

ace in the municipality that is open to the public, shall open the

sealed envelopes containing the tenders as soon as possible after 3 p.m. local time on the last

date for receiving tenders. O.

Reg. 181/03, s.

9

(1).

(2) The sealed envelopes shall be open

ed in the presence of at least one person who did not

submit a tender, which person may be a municipal employee. O.

Reg. 181/03, s.

9

(2).

(3) After opening the sealed envelopes, the treasurer shall examine their contents and shall

reject every tender tha

t,

(a) is not equal to or greater than the minimum tender amount as shown in the

advertisement;

(b) does not comply with section 6;

(c) includes any term or condition not provided for in this Regulation; or

(d) has been withdrawn as set out in subsection 8

(1). O.

Reg. 181/03, s.

9

(3).

(4) After complying with subsection (3), the treasurer shall reject all but the two highest of the

remaining tenders. O.

Reg. 181/03, s.

9

(4).

(5) Every rejected tender shall be returned to the tenderer together with the

if any, and a statement of the reason for rejection. O.

Reg. 181/03, s.

9

(5).

Notice of vesting

10.

If, after complying with section 9, no tenders remain, the treasurer shall declare that there is

no successful purchaser. O.

Reg. 181/

03, s.

10.

Two remaining tenders

11.

(1) If, after complying with section 9, two tenders remain, the treasurer shall immediately

notify the higher tenderer, by ordinary mail sent to the address shown in the tender, that the

tenderer will be declared to b

e the successful purchaser if, within 14 days of the mailing of the

notice, the balance of the amount tendered, the applicable land transfer tax and the

accumulated taxes are paid, in cash, to the treasurer. O.

Reg. 181/03, s.

11

(1).

(2) If the higher te

nderer makes the payment as set out in subsection (1), the treasurer shall

declare the tenderer to be the successful purchaser. O.

Reg. 181/03, s.

11

(2).

(3) If the higher tenderer does not make the payment as set out in subsection (1), the

posit shall be immediately forfeited to the municipality and the treasurer shall offer

the parcel of land to the lower tenderer in accordance with section 12. O.

Reg. 181/03, s.

11

(3).

One remaining tender

12.

(1) If, after complying with section 9, onl

y one tender remains or if, in accordance with

subsection 11 (3), the treasurer is required to offer the parcel of land to the lower tenderer, the

treasurer shall immediately notify the tenderer, by ordinary mail sent to the address shown in

the tender, th

at the tenderer will be declared to be the successful purchaser if, within 14 days of

the mailing of the notice, the balance of the amount tendered, the applicable land transfer tax

and the accumulated taxes are paid, in cash, to the treasurer. O.

Reg. 181

/03, s.

12

(1).

(2) If the tenderer makes the payment as set out in subsection (1), the treasurer shall declare

the tenderer to be the successful purchaser. O.

Reg. 181/03, s.

12

(2).

(3) If the tenderer does not make the payment as set out in subsection

(1),

(a) the treasurer shall declare that there is no successful purchaser and may register a

notice of vesting in the name of the municipality; and

Reg.

181/03, s.

12

(3).

PART III

SALE BY PUBLIC AUCTI

ON

Advertisement

13.

(1) If the treasurer conducts a sale by public auction, the advertisement required by clause

379 (2) (b) of the Act shall be in Form 8 and the treasurer shall allow at least seven days after

the publicat

ion of the last advertisement in

The Ontario Gazette

or newspaper or, where there is

no newspaper, the posting of the notice, before holding the auction. O.

Reg. 181/03, s.

13

(1).

(2) The auction shall be held at such place in the upper

–

tier municipality

or single

–

tier

municipality or, in the case of unorganized territory, in the territorial district in which the land is

located as the treasurer may name in the advertisement. O.

Reg. 181/03, s.

13

(2).

(3) An advertisement may relate to the sale of any n

umber of parcels of land. O.

Reg. 181/03,

s.

13

(3).

Auctioneer

14.

(1) The treasurer or such other person as the treasurer may name shall act as auctioneer.

O.

Reg. 181/03, s.

14

(1).

(2) The auctioneer shall open the auction by declaring the tax sale

officially open and by

reading out sections 15, 16, 17 and 18. O.

Reg. 181/03, s.

14

(2).

Duties of auctioneer

15.

For each parcel of land to be sold during the auction, the auctioneer shall,

(a) in opening or reopening the bidding on the parcel, state th

e minimum bid as set out in

the advertisement;

(b) acknowledge each bidder, repeat each bid made and call for higher bids; and

(c) if no higher bid is made, repeat the last bid three times and if there is still no higher

bid, acknowledge the highest bidder

. O.

Reg. 181/03, s.

15.

Highest bidder is purchaser

16.

The highest bidder shall be declared to be the successful purchaser if the bidder

immediately pays the amount bid, the applicable land transfer tax and the accumulated taxes, in

cash, to the auction

eer. O.

Reg. 181/03, s.

16.

Failure to pay

17.

If the highest bidder fails to make the payment as set out in section 16 and the bidding has

not been previously reopened under this Regulation, the auctioneer shall immediately reopen

the bidding. O.

Reg. 18

1/03, s.

17.

No bids

18.

If no bid is made for a parcel of land after the opening of the bidding or if, after the

reopening of the bidding under section 17, no bid is made or there is no successful purchaser,

the auctioneer shall declare that there is no

successful purchaser. O.

Reg. 181/03, s.

18.

Receipt

19.

The auctioneer shall issue a receipt to the successful purchaser for the amounts received

under section 16 and the receipt shall include a legal description of the parcel of land and the

name of the

purchaser and the name in which the tax deed will be registered. O.

Reg. 181/03,

s.

19.

Auction closed

20.

The auctioneer shall declare the auction closed upon completion of the bidding on all the

parcels of land offered for sale in the auction. O.

Reg.

181/03, s.

20.

List

21.

The auctioneer shall prepare and keep a list showing each parcel of land offered for sale in

the auction and the name and address of the successful purchaser or, where there is no

successful purchaser, that there is no successful

purchaser. O.

Reg. 181/03, s.

21.

PART IV

GENERAL

Postponement of sale

22.

(1) If, after a public sale under the Act is advertised in accordance with clause 379 (2) (b)

of the Act, the treasurer is of the opinion that completing the sale would be imprac

tical or would

be unfair to the bidders or tenderers, the treasurer may postpone the sale and conduct it on a

later date after readvertising it in accordance with clause 379 (2) (b) of the Act. O.

Reg. 580/06,

s.

3.

(2) If a public sale is postponed under

subsection (1) and the rescheduled sale does not occur

within 90 days after the date that was originally advertised for the sale, the treasurer shall

immediately register a tax arrears cancellation certificate. O.

Reg. 580/06, s.

3.

(3) Subsection (2) do

es not prevent the treasurer from registering a new tax arrears certificate

and proceeding under Part XI of the Act. O.

Reg. 580/06, s.

3.

Returning tenders

22.1

If the treasurer postpones or cancels a sale by public tender, the treasurer shall,

(a) open

the sealed envelopes, if he or she has not already done so; and

(b) return to the tenderers any tenders that he or she retains together with the

appropriate deposits, if any, and a statement setting out the reason for the return.

O.

Reg. 580/06, s.

3.

Regi

stration

23.

As soon as possible after a successful purchaser is declared in a sale under the Act, the

treasurer shall prepare and register the necessary documents in accordance with the Act.

O.

Reg. 181/03, s.

23.

Condition

24.

Before registering a tax

deed or a notice of vesting in respect of land that is in a local

municipality referred to in Schedule 2 to Regulation 995 of the Revised Regulations of Ontario,

1990 (Forms and Records) made under the

Registry Act

, the treasurer shall obtain a statement

i

n Form 9 signed by an authorized employee of the Ministry of Northern Development and

Mines. O.

Reg. 181/03, s.

24; O.

Reg. 580/06, s.

4.

Method of payment

25.

Subject to clause 6 (1) (b), any payment required by this Regulation to be made in cash

may be

made by way of cash or money order or by way of bank draft or cheque certified by a

bank or trust corporation. O.

Reg. 181/03, s.

25.

Forfeited funds

26.

All deposits forfeited under this Regulation to a municipality shall form part of the general

funds o

f the municipality. O.

Reg. 181/03, s.

26.

Transition

27.

(1) If a tax arrears certificate in respect of vacant land has been registered before January

1, 2003 in accordance with clause 3 (1) (b) of the

Municipal Tax Sales Act

, as it read before

January

1, 2003, the proceedings in respect of the sale of that land may continue even though

the period in which the tax arrears were owing before the registration of the certificate may be

less than the period specified in subsection 373 (1) of the

Municipal Act

, 2001

. O.

Reg. 580/06,

s.

5.

(2) If a tax arrears certificate in respect of land has been registered before January 1, 2007, the

proceedings in respect of the sale of that land may continue as if the certificate had been

registered under the Act as amend

ed by the

Municipal Statute Law Amendment Act, 2006

.

O.

Reg. 580/06, s.

5.

28.

Omitted (revokes other Regulations). O.

Reg. 181/03, s.

28.

[Author]

Posts