Tax Sales

A Tax sale is the process followed by a Municipality to recover unpaid property taxes through the sale of the property that is in arrears. The City of Brampton carries out recovery of tax arrears in accordance to legislation, municipal policies and procedures.

A Tax Arrears Certificate (lien on title of the property) may be registered where any part of tax arrears is owing on January 1st in the second year following that in which the property taxes become owing. The sale of land for tax arrears (tax sale) is governed by the Municipal Act, 2001, S.O. 2001, c.25, including Ontario Regulation 181/03.

The registration of a Tax Arrears Certificate indicates that the property may be advertised and sold by tender process if taxes, penalties, interest and reasonable costs incurred by the City (the cancellation price) are not paid within one year (or 90 days for commercial properties escheated to the Crown) of registration of the certificate. Advertisements are generally published in the Brampton Guardian for four consecutive weeks, in the Ontario Gazette for one week and on the City web site from the first date of advertising up to the date of tender opening.

Once a Tax Arrears Certificate has been registered, partial payments cannot be accepted, except upon Treasurer’s or designate approval of an extension agreement, arranged with the owner or interested party (as described by legislation) prior to the expiry of the one-year (or 90-day) period.

Using forms and directions as described by Ontario Regulation 181/03 (Municipal Tax Sale Rules), the tendering process is conducted. The successful purchaser is required to pay the amount tendered plus accumulated taxes, penalties, interests, reasonable costs incurred by the City during the tax sale process, GST/HST if applicable and the relevant land transfer tax within 14 days of being declared. The deposit (required as per legislation) is forfeited to the municipality if the transaction is not completed within the 14 days.

Tenders are opened in a public forum on the date and time advertised. Following the opening, the City reviews all tenders for legislative compliance and determines the two highest qualified tenderers. 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 highest tenderer, second highest tenderer or return of deposits is done at the tendering opening.

Properties sold through the tax 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 City 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 City does not provide legal advice in respect of tax sales or any other matters.

Collection notifications and actions Prior to Tax Sale

The City of Brampton, prior to the registration of a Tax Arrears Certificate, conducts various collection activities including, but not limited to: