Tax Sale

Tax Sales

• Tax Sale Proceedings and Registration

  All individuals who intend to bid on properties in the tax sale must pre-register prior to the start of the tax sale.

  REGISTRATION PROCESS:

  • Provide a bank draft payable to the City of Abbotsford for the maximum amount you will be spending at the auction to receive a bidding paddle (cash, debit cards, credit card, personal/business cheques are NOT accepted as form of payment);
  • Provide photo identification, occupation, current contact information, social insurance number (individuals) or business number (corporations);
  • If a bidder is successful in purchasing a property or properties, the successful bid price(s) will be deducted from the provided bank draft and a refund will be issued within a week if there is balance unused;
  • If a bidder was unsuccessful at the auction, the bank draft will be returned to the bidder when they hand in their bid card;
  • You cannot bid unless you have provided a bank draft payable to the City of Abbotsford;
  • Tax Sale will begin promptly at 10:00 am.
• Prospective Bidder Information

  • The City of Abbotsford makes no representation, express or implied, as to the condition or quality of the properties being offered for sale. 
  • Prospective bidders are advised that it is their responsibility to search the title of the property in advance to determine if there are possible pollution cleanup problems, and charges against the property.  Federal and Provincial liens, strata liens and special levy assessments will remain with the property.
  • Prospective purchasers are urged be familiar with the properties and make all necessary inquiries to municipal or 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.
  • A bid by any person will be deemed to be conclusive proof that the person has made themselves acquainted with these terms and conditions of the sale and had agreed to them.
  • The terms of the sale are cash. Cash means: Legal Canadian tender by bank draft payable to City of Abbotsford.
  • The lowest amount for which a property may be sold at tax sale is the upset price. The highest bidder above the upset price must be declared the purchaser.
  • City Council may designate a bidder on behalf of the municipality. If there is no bid the municipality must be declared the purchaser.
  • 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 at the time of the conveyance.
• How to Avoid Tax Sale

  • Pay your delinquent property taxes, including interest, by mid-September. Interest is charged daily at a rate of 7.95% per year (subject to change).
  • Pay your delinquent tax balance by the last business day in August to avoid your property from being listed in the local newspaper. Only payments received before the ad deadline will be removed from the list of properties listed in the newspaper.
  • Contact your mortgage holder if you are unable to pay the delinquent tax balance.
  • Call our office at 604-864-5522 for the delinquent amount outstanding including daily interest or refer to your Tax Sale Advice Notice.
• How to Pay Your Delinquent Property Taxes

  Payment for delinquent taxes will be accepted in the following forms:

  • Cheques that are not certified are accepted until the last business day in August
  • Online or telephone banking (allow 3 to 4 business days for payment to reach our account). Do not pay by online or telephone banking after the third Friday in September to allow for bank processing time as funds must reach our account by the last business day before the tax sale.
  • Bank draft, certified cheque or money order
  • Lawyer’s trust cheque
  • Cash or Interac at City Hall
• Redemption Period

  The current owner has one year after the property is sold at Tax Sale to retain ownership of their property. This is called the redemption period. Registered charge holders, as well as the owner, have full right to redeem the property. 

  To redeem the property, the owner or charge holder must pay the upset price, plus interest on the purchase price at a rate set by the Province and any charges, within one year of the Tax Sale. 

  The upset price is calculated as the sum of:

  • Outstanding current, arrears and delinquent taxes,
  • Penalties and interest on tax balances,
  • 5% of outstanding taxes, penalties and interest, and
  • Fees as per the Land Title Act.

  If property is redeemed, the Collector will refund the Tax Sale purchaser the purchase price, plus interest to the date of redemption.

• Rights During Redemption Period

  The Local Government Act, Part 16 Section 665 Effect of tax sale on rights of owner is summarized below for your convenience. (In the event of a discrepancy the Local Government Act will prevail).

  • Once a property is sold at the tax sale, the original owner continues to have the right to live on the property.  
  • Purchaser is registered on title, and has the right to enter the property in order to maintain it in proper condition.
• Property Not Redeemed

  If the property is not redeemed during the one year redemption period, the Collector registers the new owner at the Land Titles Office, cancelling all previous charges, except for those set out in Section 276(1) (c) to (g) of the Land Title Act. Section 276 lists rights and claims which continue to exist after a property is sold at tax sale including, but not limited to easements, restrictive covenants, rights of way, and liens or mortgages of the Crown or Improvement District.

• Resources

  The information provided on this page is intended as a general outline of the tax sale process.  For complete information prospective purchasers should consult the governing legislation such as:

  • Local Government Act, in particular (but not limited to), Part 16 Division 7
  • Land Title Act Division 5 Tax Sales
  • Strata Property Act