Tax Sale

Sale of Land by Public Tender 

In accordance with the Municipal Act, 2001 the Town may take action to collect overdue property taxes and may register a tax arrears certificate when a property is in at least its second year of arrears (Municipal Act, 2001, Part XI Tax Sale). If the taxes are not paid within 1 year of registering the certificate, the property can be advertised and sold. 

These sales are not typical real estate transactions. If you’re considering taking part in a sale, you should seek independent legal advice from a lawyer licensed to practice in Ontario, and in good standing with the Law Society of Ontario. 

Visit the Ontario Centre Forms Repository or Ontario Tax Sales to get information and the required form of tender or visit the Town hall in person to purchase a form. 

Tenders must be submitted on the correct form and include a deposit of at least 20% of the tender amount (certified cheque, bank draft or money order payable to the Town of Grimsby).  The tendering process is conducted using forms and directions as described by Ontario Regulation 181/03 (Municipal Tax Sale Rules).

The successful bidder must pay the amount tendered plus any applicable taxes, such as accumulated taxes, land transfer tax, and HST. 

Tenders are opened in a public forum on the date and time advertised. Following the opening, the Town reviews all tenders for legislative compliance and determines the two highest qualified tenderers. All other rejected tenders are returned by registered mail (or as otherwise specified as per tender documents) to the tenderer along with their deposit and reason for rejection. No declaration of the highest tenderer, second highest tenderer or return of deposits is done at the tendering opening. 

The successful purchaser is required to pay the amount tendered plus accumulated taxes, penalties, interests, reasonable costs incurred by the Town during the tax sale process, GST/HST if applicable and the relevant land transfer tax within 14 days of being declared.  Failure to make payment in full by the designated time period results in the deposit being forfeited (required as per legislation); and the Town will offer the parcel of land to the 2nd highest bidder for purchase, with the same time and payment requirements as outlined above.

Properties sold through the sale process are sold without any warranties, are as is, and the Municipality has no obligation to provide vacant possession or assurances. 

Any tax sale declared to be unsuccessful may be vested by the municipality or re-advertised for sale within two calendar years of declaration. 

The Town reserves the right to withdraw any property from the tax sale process at any time prior to registration of a tax deed without notice. 

The Town does not provide legal advice in respect of tax sales or any other matters. 

Current Listings of public sale of properties with unpaid taxes

Resources

• Ontario Tax Sales (OTS)
• Municipal Tax Sale Legislation – Part XI, Municipal Act, 2001
• Municipal Tax Sale Rules - Ontario Regulation 181/03
• The Ontario Gazette - the official publication for all notices that must be made public