Should there be no interest in the property, or no one successfully bids on it, the parcel in question becomes the property of the town, village, township, or municipality. The municipality can then do with it as it pleases. Frequently, it is listed with a real estate company and an attempt is made to sell it close to market value.

For 95% or more of these sales the answer is yes. The only three exceptions that we are aware of are:

1) easements or rights of way that run with the land,

2) any interest that the provincial or federal governments might have in the land, (extremely rare)

3) any interest or title acquired by adverse possession by abutting landowners before the registration of the tax deed or notice of vesting.

We suggest asking the municipality concerned whether the property you intend to bid on is affected by any of these. They should be able to tell you.

Plan numbers usually refer to town registrations of smaller divisions of land. Information for lots which are on a registered plan map is available directly from the municipal office in each area.

The answer to this question depends on the province. In some provinces, such as Ontario, there is no opportunity to redeem. The tax sale is final and the successful bidder or tenderer immediately gets clear title to the property.

These properties are disposed through public auctions or public tenders.

At a public auction, you simply show up on the announced date and, as with any other auction, you bid on the property you are interested in. The highest bidder is the successful purchaser of the property.

With public tenders, you enter information on a prescribed form and you indicate how much you are prepared to pay for a particular piece of property. Your tender is then put in a sealed envelope, along with a percentage deposit of your tender amount, and brought or mailed to the municipality holding the sale. On a predetermined date your tender is opened and, if you are the highest bidder, you are the successful purchaser of the property.

Once you receive title to a property purchased at a tax sale, it is subject to the same tax rules as any other property you might own. If it is used as your principal residence and is sold, it is not subject to a capital gains tax. If it is not your principal residence and you don't qualify for an exemption, then you will pay a capital gains tax on resale.

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

In most provinces if there is a sale of land and the municipality determines that there is a successful bidder or tenderer, this person cannot be considered the successful purchaser until the sale price and the land transfer tax owing on the sale price has been paid.

9. When a property is purchased and possession is granted, is the property owned outright? What happens to any existing mortgages?

The new owner of a tax sale property does not assume the mortgage if one exists. If a listed property has an existing mortgage it is treated as follows: the tax office sends at least two notices to the lender concerned; if the lender has not responded by the time of sale, the property goes to the new owner and the mortgage is dismissed.