Where any part of a municipality's property taxes are outstanding after a two year period, the municipal treasurer may prepare a tax arrears certificate and register it in the appropriate Registry or Land Titles Office. For example, 2008 taxes that remain unpaid to December 31st, 2010, would be subject to registration on January 1st, 2011.

The tax arrears certificate must contain an accurate description of the land. In addition, there must be an indication that the land described will be sold by public sale if the cancellation price is not paid to the municipality within one year of the registration of the tax arrears certificate. By cancellation price, we refer to an amount equal to all tax arrears owing, penalties and interests, and all reasonable costs incurred by the municipality as a result of this procedure. Included in the costs are legal fees and disbursements, the costs of a survey, and advertising expenses.

The treasurer is required to send or cause to be sent, within sixty (60) days of the registration of a tax arrears certificate, a notice to the owner and all interested parties, advising them of the registration and potential sale of the property.

Included in those who receive notice are the assessed tenants in occupation of the land and their spouses. Where a notice has been sent to the owner of the land, a separate notice must also be addressed to his/her spouse.

A person is not entitled to a notice if the treasurer does not find his/her address after having completed a reasonable search of the records of the Registry Office, the Land Titles Office, the Sheriff's Office, and the last returned assessment roll.

After sending the proper notices, the treasurer must prepare and register, in the appropriate Land Titles or Registry Office, a statutory declaration stating the names and addresses of the people to whom notices have been sent.

By law, any person can pay the cancellation price to the municipality, but it must be done within one year from the day on which the tax arrears certificate was registered. When such a payment is received, the treasurer must register a tax arrears cancellation certificate. Once this certificate is registered, the process is halted. The person who pays the cancellation price before the end of the one year period may request that the treasurer prepare an itemized breakdown of the cancellation price. The request must be in writing and made within thirty (30) days of the payment.

In the event that the cancellation price still remains unpaid 280 days after the day of registration of the tax arrears certificate, the treasurer will be required to send a final notice. This notice is sent to the same parties who received the initial notice and again warns of the pending sale if the cancellation price is not paid before the expiry of the one year redemption period.

If the cancellation price continues to be unpaid, the treasurer must advertise that the property will be sold. Once advertised, these properties can be disposed of either by public auction or by public tender. The sales are always subject to certain rules and follow procedures which have been established by provincial regulations (see Rules). At these sales, the minimum acceptable offer on a property is always the cancellation price.

A municipality may, if the council authorizes it, bid or tender on a property being offered for sale. The municipality must, however, have a municipal purpose for the property.