Property Doesn't Sell at a Tax Sale.... What Happens Next?

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Property Doesn't Sell at a Tax Sale.... What Happens Next?

Postby GoTaxSales.ca » Tue Nov 19, 2013 3:05 pm

Property Doesn't Sell at a Tax Sale.... What Happens Next?

In this edition of our Company Blog we would like to address another common question we regularly receive from our members regarding tax sale properties.


What happens when a property doesn't sell at a Tax Sale?

After a failed tax sale the municipality has to make 1 of 3 major choices.

1. Re-Advertise the Tax Sale Property within 2 years

2. Vest the Tax Sale Property into the municipality

3. To do nothing within the 2 year time period which would result in the tax arrears certificate being deemed to be cancelled, at which point the tax registration and tax sale proceedings must be started from again from the beginning.


What are some reasons a tax sale may fail?

When no tenders or bids are received it results in a failed tax sale. The main reason for this is Property Condition vs. Property Value.
For instance there have been numerous old gas stations, workshops, industrial complexes and many other properties for sale in the past that for most individuals will sound the warning bells for an extremely risky investment.

The first question that comes to mind in regard to the above property is... are they contaminated?
The second question is if these properties are contaminated, how much is it going to cost to perform a cleanup of this property?

The other most common reason for a failed tax sale is that the minimum tender amount is more than the assessed value of the property, at this point the successful sale may seem bleak, though it is still possible for the property to sell; As a matter of fact in the past there have been a handful of properties purchased for more than the assessed value.

There are several great deals in respect to tax sale properties, but like anything else there is a darker side to things as well, some other reasons for a failed tax sale may include,


1. The property is landlocked or inaccessible
2. There are interests that will affect the property after a tax sale
3. The land is vacant and building permits are not available



There are many reasons in addition to those just mentioned that will defer interest from investors.

Always consider the pro's vs. the cons, many times a property will appear to be an investment opportunity of a life time, but after a little bit of research you may come to realize the property may not be as great as it seemed to be at the previous glance. The property could be crawling with crown liens, landlocked, contaminated and much more, it is strongly recommended that potential purchasers research these properties as thoroughly as possible before submitting a tender or bid.
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Re: Property Doesn't Sell at a Tax Sale.... What Happens Nex

Postby GoTaxSales.ca » Fri Nov 29, 2013 6:02 pm

Hi John,

Try searching for Municipal Surplus Property in Google.com or check Tri-Target.com for any of their Showcased Surplus Listings, they can even gather these listings for you, regardless of whether or not they are posted on http://www.Tri-Target.com. I know they have 2 Surplus Listing for properties in Dubreuilville, Ontario in Algoma.

Here is the link to their Municipal Surplus Property Listings - http://www.tri-target.com/taxsaleproperties.php?surplus

I will do some digging for you and report back when i have something to present.

Thanks for Posting!
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Re: Property Doesn't Sell at a Tax Sale.... What Happens Nex

Postby threesummits » Fri Nov 13, 2015 3:28 am

I am a newbie and was recently following a tax sale with a property that looked interesting to me, but I did not submit a bid. After the tax sale was over I checked and there were no valid bids received. Is it possible to contact the municipality and offer them the minimum bid at this stage? Or is the property not accessible until they decide to do another sale?
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Re: Property Doesn't Sell at a Tax Sale.... What Happens Nex

Postby asachs » Fri Dec 11, 2015 8:36 pm

I am also interested about this.

threesummits wrote:I am a newbie and was recently following a tax sale with a property that looked interesting to me, but I did not submit a bid. After the tax sale was over I checked and there were no valid bids received. Is it possible to contact the municipality and offer them the minimum bid at this stage? Or is the property not accessible until they decide to do another sale?
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Re: Property Doesn't Sell at a Tax Sale.... What Happens Nex

Postby GoTaxSales.ca » Mon Dec 14, 2015 10:33 am

Regarding properties that are sold at a tax sale. First and foremost we would like to clarify that at no time during a tax sale are these properties accessible, as that would be trespassing.

As for submitting a bid on a property that hadn't sold at a tax sale, that depends on the municipality and whether or not they decided to vest the property after the failed tax sale and declared the land as surplus. If they haven't then the lands are not their property and they might either decide to do a tax sale re advertisement or they may be in the process of discussing payment with the owner(s), etc. - We do not have that information available, thus, you should contact the municipality in which the property is situate in order to determine if they have/will be vesting the property and if they would be interested in declaring the land as surplus and offering it for sale or keeping it once they have vested it for their own uses.

There are a few options the municipality has available to them when a tax sale fails, but for clarification, you should contact the municipality directly with these questions.
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