Tax Sale

A Tax Sale is a legislated collection process that applies when property taxes remain unpaid for three (3) consecutive years. Tax Sales are governed by the Local Government Act and occur annually on a scheduled date.

For more detailed information, refer to the Local Government Act, particularly, but not limited to, sections 645 to 672.

What is Tax Sale?

A Tax Sale allows the City to recover unpaid property taxes by offering properties for sale through a public auction process.

Tax Sale occurs after property taxes have been unpaid for three consecutive years and required steps have been followed. The City’s goal is to avoid Tax Sale whenever possible. City staff make significant efforts to contact property owners who may be at risk and to explain the process and available options

When a Tax Sale Can Occur

Properties with three (3) consecutive years of outstanding taxes are offered for public auction on the last Monday in September.

Before a Property is Offered for Tax Sale

Before a property can be offered for Tax Sale:

• The City must issue statutory notices to registered owners
• The City must advertise the list of properties at risk of tax sale no less than three days or more than ten days before the tax sale
• Legislated timelines must be met

Property owners are encouraged to contact Revenue Services as early as possible if their property is at risk of tax sale.

What Happens at Tax Sale

• Properties are offered through a public auction in the Service and Resource Centre Boardroom at 411 Dunsmuir Street, Nanaimo
• Property sales are "as is" without warrant or guarantee by the City
• The starting bid is based on the full outstanding tax amount including penalties and interest plus administration fee and Land Titles fees (Upset Price)
• If no bidding takes place within three calls, the City is declared the purchaser at the Upset Price
• Ownership does not immediately transfer to the purchaser (highest bidder)
• The registered owner has a redemption period of one year to repay the outstanding amounts including interest owed to the purchaser on the purchase price

Avoiding Tax Sale

Tax Sale can be avoided by ensuring at least the delinquent taxes plus applicable interest is paid before the public auction.

Purchasing a Property at Tax Sale

To complete a purchase at Tax Sale, full payment by certified cheque must be provided to the City by 1:00 pm on the day of the tax sale.

If payment is not received by this deadline, the property will be offered for sale again the following day to another bidder.

Notifying Registered Charge Holders

After a Tax Sale, the City is required by law to notify certain registered charge holders on the property title.

• The City searches property title records
• Registered charge holders are notified within ninety (90) days of the Tax Sale

This process ensures that parties with a registered interest in the property are informed.

Redemption (Buying Back the Property)

After a property is sold at Tax Sale, the original owner has one year to reclaim the property by paying the outstanding amounts including any interest on the purchase price. This process is called redemption.

Who Can Redeem

• The original registered owner(s)
• Any registered charge holder
• Another person on behalf of the original registered owner(s) or registered charge holder(s)

What is Required to Redeem

To redeem the property, the full Upset Price, plus interest on the purchase price at a rate set by the Province, must be paid within one year of the Tax Sale.

Installment Option (City as Purchaser)

If the City becomes the purchaser at Tax Sale and there are improvements on the Land:

• 50% of the Upset Price, plus interest on the purchase price, may be paid as an installment
• This extends the redemption period by 11 months and 21 days

Need Help?

If you have questions about unpaid property taxes or Tax Sale, contact Revenue Services for assistance. Early communication is strongly encouraged.