Tax Sale Information
The City is required by the Local Government Act to sell properties whose taxes have not been paid for three years at a tax sale. Below is a general outline of the tax sale process. For more detailed and complete information, please consult the Local Government Act (in particular, but not limited to, Sections 645 to 672).
Please note that all property sales are "as is" without warrant or guarantee by the City of Nanaimo.
- The Local Government Act requires municipalities to advertise in at least two issues of the local paper no less than three or more than ten days prior to the Tax Sale.
- The legal description and street address must be published.
- To avoid your property being listed in this ad in the newspaper, your delinquent taxes must be paid approximately one month prior to the Tax Sale date.
- A public auction will be held at 10:00 am on the last Monday in September each year in a room designated as Council Chambers at City Hall.
- Bidding is accepted on all properties.
- Prospective bidders are advised that it is their responsibility to search the title of the property in advance to determine if there are any charges registered against the property.
- The minimum bid is the amount of the Upset Price which is all outstanding taxes + penalties + interest + 5% tax sale costs + Land Title Office fees. The property will be sold to the highest bidder.
- If no bidding takes place within three calls by the Collector (auctioneer), the City is declared the purchaser at the Upset Price.
- Full payment by certified cheque must be submitted by 1:00 pm on the day of the Tax Sale. If payment is not submitted, the Collector again offers the property for sale.
Notifying Charge Holders
- The Collector is required by law to search all property titles and, within 90 days after the Tax Sale, notify all registered charge holders shown on each property.
- The original owner has one year after the property is sold at a Tax Sale to pay the taxes and buy back their property. This is called redemption.
- All registered charge holders have full right to redeem the property.
- To redeem the property, a charge holder must remit the full Upset Price, plus interest, on the purchase price at a rate set by the Province within one year of the Tax Sale.
- If the property has been sold at the Tax Sale and the City has been declared the purchaser, 50% of the Upset Price, plus interest, may be paid as an instalment. This payment extends the redemption period by 11 months and 21 days. This extension applies only to a property having improvements.
- 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
- Section 665 of the Local Government Act provides that when real property is sold at a Tax Sale, all rights held by the person who, at the time of the sale, was the owner, immediately cease to exist except for the right of redemption, the right to bring an action to set aside the Tax Sale and the right to possession.
- The registered owner's right of possession is subject to the purchaser's right to bring action against the original property owner for waste (e.g. damage or destruction to the premises) and the right of the purchaser to enter onto the property to maintain it in the proper condition and to prevent waste.
- Damage, destruction or loss of property during the redemption period are at the risk of the purchaser. The purchaser is advised to insure their interest in the property.
Property Not Redeemed
- If the property is not redeemed during the one year period, the Collector registers the new owner at the Land Titles Office in Victoria, thus cancelling all previous registered charges, except for those matters set out in Section 276(1)(c) to (g) of the Land Title Act and any lien of the Crown, an improvement district or a local district.
- The new owners are required to pay the property sales tax to the Provincial Sales Tax Administrator after application has been made to register in the Land Titles Office.