The following notes provide general information about the tax sale process. For complete information, property owners and prospective purchasers should consult the Local Government Act, in particular but not limited to, Sections 645 to 672.
The Local Government Act requires the Village to sell at Tax Sale all properties whose taxes have not been paid for three years. The Act gives the Village’s Collector authority to sell a property for the Upset Price which equals all outstanding taxes + penalties + interest + 5% tax sale costs + Land Title Office fees. All property sales are “as is” without warranty or guarantee by the Village of Nakusp.
Advertising
The Local Government Act requires municipalities to advertise in accordance with section 94 of the Community Charter. The legal description and civic (street) address must be published. To prevent having your property advertised for the tax sale, delinquent taxes must be paid approximately three (3) weeks prior to the Tax Sale date.
Tax Sale
Each year, a public auction is held at 10:00 a.m., on the last Monday in September (unless the last Monday in September is a holiday, the annual tax sale must instead be held on the next Monday that is not a holiday; Section 645 (2) Local Government Act), at the Village Office located at 91 – 1st Street NW. 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 changes registered against the property. The minimum bid is the amount of the Upset Price. If no bidding takes place within three (3) calls by the Collector (auctioneer), the Village is declared the purchaser at the Upset Price.
Purchasing Property
Payment of the Upset Price (by cash or certified cheque) must be remitted immediately. If the purchase price is above the Upset price, the purchaser must pay the balance by 1:00 pm on the tax sale date. If payment is not remitted, the Collector again offers the property for sale.
Notifying Charge Holders
The Collector is required by law to search all property titles and within ninety (90) days after the Tax Sale, notify all registered charge holders shown on each property.
Redemption
The original owner has one year after the property is sold at 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, the charge holder must remit the full Upset price, plus interests on the purchase price at a rate set by the Province, within one year of the Tax Sale.
Rights during the Redemption Period
Section 665 of the Local Government Act provides that when real property is sold at Tax Sale, all rights held by the owner at the time of the of the sale, 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 (i.e. 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 is at the risk of the purchaser. The purchaser is advised to insure his interest in the property.
Property Not Redeemed
If the property is not redeemed during the one (1) year period, the Collector then 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 Village or a Local Village. The purchase of a tax sale property is subject to tax under the Property Transfer Tax Act.
