TAX SALE

Tax Sale Information

Under the Local Government Act, municipalities in British Columbia are required to sell properties with delinquent property taxes at an annual Tax Sale.

The Tax Sale is held by public auction at 10:00 a.m. on the last Monday in September each year. Delinquent taxes are property taxes that remain unpaid after December 31, two years following the year in which they were imposed.

Most properties offered for Tax Sale are redeemed by the owner before the one-year redemption period expires.

In accordance with the Local Government Act, properties subject to Tax Sale are advertised in a local newspaper prior to the Tax Sale.

Prospective Bidder Information

During the one-year redemption period, the property owner retains legal ownership and possession of the property. Owners have the right to continue occupying and using the property unless and until the redemption period expires without redemption.

Prospective bidders are responsible for conducting their own due diligence before the Tax Sale, including reviewing the property title, registered charges, zoning, access, condition of the property, and any other matters affecting the property. The Village makes no representations or warranties regarding any property offered for sale.

The lowest amount for which a property may be sold is the upset price. The highest bid at or above the upset price must be accepted and declared the successful bid.

The successful bidder must immediately pay the full purchase price following the auction. If payment is not received immediately, the property may be offered for sale again.

Only the following methods of payment are accepted:

Debit
Cash
Certified Cheque
Bank Draft
Money Order

Municipal Council may designate a bidder to purchase property on behalf of the Village. If no bids are received, the Village must be declared the purchaser.

The purchase of a Tax Sale property is subject to the Property Transfer Tax Act. Property Transfer Tax is calculated on the fair market value of the property at the time title is transferred.

Properties are sold on an "as is, where is" basis. The Village does not guarantee vacant possession, access, environmental condition, improvements, or the suitability of the property for any purpose.

How to Avoid Tax Sale

Pay delinquent property taxes as soon as possible before the Tax Sale on the last Monday in September. Interest continues to accrue on outstanding balances until paid.

Claim your Home Owner Grant (if eligible) by the applicable due date.

Pay the delinquent tax balance by the last business day in August to avoid your property being advertised in the local newspaper. Only payments received before the advertisement deadline will be removed from the published Tax Sale list.

How to Pay

The following payment methods are accepted for delinquent property taxes:

Personal cheque (accepted until the last business day in August only)
Certified cheque
Bank draft
Money order
Debit (please ensure your daily transaction limit is sufficient)
Cash (at the Village Office)

Redemption Period

The current owner has one year after the property is sold at Tax Sale to redeem the property by paying all amounts required under the Local Government Act. This is known as the redemption period.

Registered charge holders, as well as the owner, have the full right to redeem the property. To redeem the property, the charge holder must remit the upset price, plus interest on the purchase price at a rate set by the Province, within one year of the Tax Sale.

The upset price is calculated by adding:

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.

As soon as the property is redeemed, the Collector will refund to the tax sale purchaser the purchase price, plus interest, to the date of redemption.

Rights During Redemption Period

The following is a summary of the Local Government Act. In the event of any discrepancy, the Local Government Act will prevail.

Following a Tax Sale, the original owner remains the legal owner of the property during the one-year redemption period and retains the right to occupy and use the property.
The original owner may sell or otherwise deal with the property during the redemption period. Any prospective purchaser would typically require the property to be redeemed by paying all amounts necessary to clear the Tax Sale.
The tax sale purchaser is registered in the Land Title Office as the tax sale purchaser, subject to the owner's right of redemption.
The tax sale purchaser may enter the property only as permitted under the Local Government Act, including for the purpose of preserving or maintaining the property. Any costs incurred that are permitted by legislation may be recoverable if the property is redeemed.

Property Not Redeemed

If a property is not redeemed before the end of the one-year redemption period, the Collector registers the tax sale purchaser as the owner in the Land Title Office.

If the property is not redeemed before the redemption period expires, ownership of the property permanently transfers to the tax sale purchaser.

Upon registration, most registered charges against the property are cancelled, except for those that continue under section 276 of the Land Title Act. Examples of interests that may remain on title include:

Easements
Statutory rights of way
Restrictive covenants
Certain Crown charges
Certain Improvement District charges
Other interests that continue under the Land Title Act

Prospective purchasers are responsible for conducting their own title search and obtaining independent legal advice regarding any interests that may remain on title following the tax sale.

Frequently Asked Questions

Can I enter the property before I purchase it?

No. Prospective bidders do not have the right to enter or inspect a property before purchasing it.

The tax sale purchaser may only enter the property as permitted under the Local Government Act, including for the purpose of preserving or maintaining the property during the redemption period.

Can I obtain financing or a mortgage to purchase a property at tax sale?

Prospective bidders are responsible for arranging their own financing before participating in a tax sale.

The successful bidder must immediately pay the full purchase price following the auction. The Village does not provide financing arrangements or payment plans for tax sale purchases.

Can I inspect a property before bidding?

The Village does not provide property inspections for tax sale properties. Prospective bidders are responsible for conducting their own due diligence before bidding, including reviewing the property title, registered charges, zoning, access, condition of the property, and any other matters affecting the property.

Prospective bidders are encouraged to independently investigate any property before participating in the tax sale.

Questions?

If you have questions regarding the Tax Sale process or outstanding property taxes, please contact the Village Office prior to the Tax Sale.

Village of Telkwa

Phone: 250-846-5212

Email: info@telkwa.ca