Discover the impact of unpaid property taxes in Canada, from tax liens to potential property sales. Learn how to acquire taxes lien plays a crucial role in acquiring deeply discounted Canadian real estate assets for instant equity and profit
Investing in the Canadian delinquent property tax liens properties can be super profitable when real estate investors have gone through intensive real estate apprenticeship and coaching program offered by flipping4profit.
On the other hand, making a minor mistake can cause you lifetime savings and loosing all your assets. Not understanding the law, the real process, implementation, obligations, uncertainty, lack of due diligence and full of unexpected shocks with surprises are turn the acquisition of profitable deal into a never ending nightmare.
Here are the laws in all ten different provinces in Canada and brief description.
In Quebec, there isn’t a specific number of years of unpaid taxes required before a house is put up for a tax sale. Municipalities can take action to recover unpaid property taxes after missing a payment. The process typically follows these steps:
- The municipality will attempt to contact the owner and inform them of the delinquency and the need for payment.
- If the delinquency persists, they may send a final notice through registered mail.
- Public notices are published in local newspapers about upcoming tax sales which include a list of properties at risk.
This entire process can happen within a single year. Here are some resources that provide more details on Quebec tax sales:
- Municipal website examples:
- Ville de Montréal https://montreal.ca/en/how-to/buy-building-tax-sale
- Revenue Quebec https://www.revenuquebec.ca/en/unclaimed-property/information/property-sales/
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In Ontario, a house can be put up for tax sale after three years of unpaid property taxes, not two. Here’s a quick breakdown of the process:
- Missing a property tax payment puts the owner in arrears.
- If the arrears remain unpaid for at least two years, the municipality can register a tax lien against the property.
- After three years of non-payment, the municipality can initiate a tax sale by public tender or auction.
It’s important to note that municipalities are required to follow specific procedures before a tax sale can occur, including providing ample notice to the property owner
The exact timeframe for a property tax sale in Manitoba due to unpaid taxes isn’t a set number of years. However, there is a process followed by municipalities that involves accumulating tax arrears and providing notifications before a tax sale can occur.
Here’s a general outline:
- Unpaid property taxes will accrue penalties and interest.
- Municipalities are required to maintain a list of tax-delinquent properties.
- Before a sale, the municipality must provide public notice through various channels.
It’s best to consult with Manitoba resources for the most recent information. Here are a couple of helpful references:
- The Municipal Act of Manitoba: [Manitoba Municipal Act ON web2.gov.mb.ca
In New Brunswick, a property owner doesn’t have to wait years of accruing unpaid taxes before their house is put up for a tax sale. The requirement is for the account to be in arrears more than one year https://www2.gnb.ca/content/gnb/en/corporate/promo/tax-sale.html.
If property taxes go unpaid, the government initiates a legal process called the sale of land for tax arrears after exceeding this one-year mark.
This involves listing the property for public auction to recover the outstanding balance.
In Nova Scotia, a property owner’s house can be put up for tax sale if the property taxes are in arrears for three consecutive fiscal years. This information can be found on the website for the Halifax Regional Municipality
https://www.halifax.ca/home-property/property-taxes/tax-sale
The exact timeframe for a property tax sale in Newfoundland and Labrador due to unpaid taxes isn’t specified in a single number of years. However, there are resources that can help. Here’s what I found:
- The process involves a tax lien being placed on the property before a sale can occur. This lien acts as a legal claim against the property for the unpaid amount.
- There isn’t a set timeframe for how long it takes before a lien is enforced through a sale. It depends on the municipality and their specific procedures.
Here are some next steps to find the answer:
- Look at the website of the municipality where the property resides. They may have information on tax sales and the process.
- Contact the municipal office directly. They can provide details on the local regulations and timelines for tax-related property sales.
Here are some resources that might be helpful:
- The Newfoundland and Labrador Department of Municipal Affairs and Environment might have relevant information on their website.
There isn’t a single province-wide rule. Saskatchewan municipalities have the authority to set their own timelines for tax enforcement, and these timelines can vary.
Here are some recommendations for finding the relevant information:
- Contact the local municipal office where the property is located. They should be able to tell you their specific requirements.
- Search the website of the Saskatchewan Ministry of Government Relations. They may have information on tax enforcement procedures.
Remember, this information is for general knowledge only and shouldn’t be taken as legal advice. If you have any concerns about property taxes in Saskatchewan, it’s best to consult with a lawyer.
In Alberta, a property owner needs to accrue more than one year of unpaid taxes before their house is listed for a tax sale.
Here’s the breakdown of the process:
- If property taxes remain unpaid by January 1st of the following year, they are considered in arrears.
- However, the arrears need to persist for another year, meaning they have to be unpaid by January 1st of the subsequent year (two years after the tax was imposed) before the property is placed on the tax arrears list.
- If the taxes are still not paid after a Tax Recovery Notification is placed on the title, the property can be listed for public auction one year after the notification is registered.
It’s important to note that specific timelines might vary depending on the municipality. For the most up-to-date information, it’s recommended to consult your local municipal government or refer to Alberta’s Municipal Affairs resources on tax recovery: A Guide to Tax Recovery in Alberta
In British Columbia, a property can be put up for tax sale if the property taxes are delinquent and remain unpaid by the statutory tax sale date, which falls on the last Monday in September each year [2].
Here’s the breakdown of how it works:
- Taxes become arrears after December 31st of the year
- they were imposed [3].
- If the arrears are still unpaid one year later (by December 31st of the following year), they become delinquent.
- Delinquent taxes are subject to a tax sale if they remain unpaid by the last Monday in September [2].
So, technically, taxes become delinquent after two years of non-payment. However, municipalities are required to hold a public auction and attempt to sell the property to recover the owed taxes.
In Prince Edward Island, a property can be put up for a tax sale if the property taxes and charges are in arrears for twenty-four (24) months or more, and no acceptable payment arrangements have been made https://www.princeedwardisland.ca/en/information/finance/property-tax-sales.
