Frequently Asked Questions
What does “Cancellation Price/Minimum Bid” mean?
The Cancellation price/Minimum Bid is an amount that is equal to all tax arrears owing, interest, penalties, other land-related costs and all reasonable costs incurred by the Municipality after the Treasurer becomes entitled to register a Tax Arrears Certificate under Section 371 of the Municipal Act, 2001
Tender Requirements
All tenders must be submitted using Form 7. The tender must be submitted in a sealed envelope addressed to the Manager of Taxation. Tenders will be received until 3:00 p.m. on the date of the tax sale at the Civic Centre, 99 Foster Drive, Sault Ste. Marie, Ontario, P6A 5X6. The office is open to the public from 8:30 am to 4:30 pm, Monday to Friday. The sealed envelope must indicate that it is for a “Tax Sale” and have a short description or municipal address of the land so that the tenders can be distinguished from one property to another. The tender must be submitted typewritten or legibly handwritten in ink. Tenders containing errors will be rejected
Is there a deposit that must be included?
Yes, each tender must be accompanied with a deposit of at least 20% of the submitted tender amount. The tender deposit must be paid by certified cheque, money order or bank draft payable to City of Sault Ste. Marie.
What happens if two or more bids are equal?
In the event of a tie, the bid submitted first that meets all of the other criteria will be considered the highest bid.
Up to what point can the owner pay the taxes and avoid the sale?
The owner can pay the cancellation price at any time up to the point in which the property is either transferred to the successful tenderer or vested to the Municipality due to the failed Tax Sale.
How will I know I am the successful bidder?
Results of the tax sale will be posted on the City’s website as soon as possible following the tender opening. All successful and non-successful bidders will be notified. The highest and second highest bids will be retained until the transfer of property is finalized. Deposits will be returned to non-successful bidders.
What happens if I am the successful bidder?
If you are the successful bidder, you will be notified by mail and have 14 calendar days from notice of successful bid to pay balance of tender. If the balance of tender is not paid within the 14 calendar days, your deposit will be forfeited to the municipality and the property will be offered to second highest bidder.
Upon receiving notification, the highest qualifying tenderer will be required to retain a lawyer licensed to practice law in Ontario and in good standing with the Law Society of Upper Canada, preferably one who deals in tax sales, to assist the City in completing the transfer of the property.
If I am the successful purchaser, do I have to pay tax arrears in addition to my bid?
No. The minimum bid includes all taxes owing up to the tax sale advertising date. There could be further accumulated taxes, interest and other relevant costs (e.g. HST and Land Transfer tax) which will have to be paid in addition to the submitted tender and not taken from any surplus.
How would I determine if there is a mortgage or any liens owed against the property?
It is the responsibility of the tenderer to search title at their expense
Am I able to view and/or tour the property?
The Municipality cannot provide access to view or tour the property. Access without the authorization from the owner of the property is considered trespassing
What is the condition of the property? What if the property is in poor condition or there is debris on the premises?
Properties are sold AS IS. The Municipality does not make any representation as to the condition or size of the property. The purchaser is responsible for the removal of any debris, etc. left at the property and any associated expenses.
What if I want to withdraw my bid before the sale?
If the bidder wishes to withdraw their bid, they may do so by providing written request to the Treasurer. The request must be received prior to 3:00 p.m. on the day the tenders are to be opened.
What if the property is occupied?
The Municipality does not guarantee vacant possession. Please contact a lawyer.
Does the municipality keep the “extra” funds if the successful bid is higher than the cancellation price?
In a successful tax sale where the purchase price exceeds the cancellation price, there will be surplus funds. The municipality must deposit the surplus funds with the Superior Court of Justice. (Note – taxes or fees accumulated since the tax sale advertisement, HST, and land transfer tax must be paid by the successful bidder in addition to the tendered amount and are not to be taken from any surplus funds). Creditors with a registered interest at the time the tax arrears certification was initially registered and/or the former owners may apply to the Court for the surplus funds.
Can I still purchase a property after the Tax Sale?
No, tenders for the listed properties are only accepted until 3 p.m. on the day of the Tax Sale.