A tax sale is a public auction of properties with unpaid property taxes from the last two years. Under the Local Government Act, municipalities in B.C. must hold a tax sale every year on the last Monday in September at 10 a.m.
Public notice
As required by the Local Government Act, the City must publish a tax sale notice in a local newspaper at least twice. The final notice must be given at least three days, but no more than 10 days, before the sale.
The notice will include:
- the time and place of the sale
- the legal description and street address of each property for sale
To avoid having your property listed in the tax sale, pay all delinquent property taxes at least two weeks before the sale date.
How the tax sale works
All listed properties are open for bidding.
The minimum bid is called the upset price. This includes:
- unpaid property taxes
- penalties and interest
- a five per cent tax sale fee
- Land Titles Office fees
If no bids are made within three calls by the auctioneer, the City will buy the property at the upset price.
Before bidding
The City makes no representation express or implied as to the condition or quality of the properties being offered for sale. Prospective bidders are urged to inspect the properties and make all necessary inquiries to the land title office, municipal and other government departments and in the case of strata lots to the strata corporation to determine the existence of any bylaws, restrictions, charges, or other conditions which may affect the value or suitability of the property.
The purchase of a tax sale property is subject to tax under the Property Transfer Tax Act on the fair market value of the property.
Buying property at a tax sale
The successful bidder must:
- immediately pay the upset price by cash, certified cheque or bank draft
- provide a social insurance number (SIN) or business number (corporate seal may also be needed)
- pay the full bid amount by 3 p.m. on the day of the sale
If you don't pay the upset price right away, the property is put up for sale again. If the full payment is not received by 3 p.m., the property is re-auctioned at 10 a.m. the next business day.
Notifying charge holders
Within 90 days after the tax sale, the collector must search all property titles and notify all registered charge holders.