ADMINISTRATION    Sale of immovables for non-payment of taxes

Under the Municipal Code of Québec and intermunicipal agreements, the MRC carries out the sale of immovables for non-payment of taxes for the local municipalities located on its territory (excluding the town of Bedford and Farnham).

List of immovables susceptible to be sold, now available.
* Will be updated with each withdrawal *

The sale of immovables for non-payment of taxes is, for the local municipalities, school boards and school service centres, one of the options made possible by specific Sections contained in both the Municipal Code of Quebec and the Cities and Towns Act to recover the amount owed by the property owner. As an indication only, the general course of action is as follow:

• The local municipality which has unpaid taxes must do everything in its power to inform the owner in default of payment that he is required to pay within a prescribed period. Otherwise, the immovable in question will be submitted to the MRC, which shall undertake the legal procedure for the sale of the immovable on the 2nd Thursday of June of this current year and the local municipality shall also inform the owner of the various costs related to the unpaid taxes and interests (minimum of $400).
• No later than March 31th, the local municipalities must send their lists of unpaid immovables to the MRC.
• The MRC also sends a final and registered notice to each owner who has not yet acquitted the payment due and publishes twice a public notice regarding the sale of immovables for non-payment of taxes (List of immovables susceptible to be sold,) in local newspapers as of around mid-April in order to inform the owner that his property will be sold as a default of non-payment of taxes.
• The owner of an immovable up for sale for non-payment of taxes has the right to withdraw his property from the sale until the morning of the auction by paying, in cash, bank transfer or by certified check, bank money order, bank draft or by all other payment methods offering the same guarantees ALL taxes and fees incurred by the proceeding.
• The MRC proceeds with the sale for non-payment of taxes on the 2nd Thursday of June to the highest bidder which shall pay in FULL PAYMENT as well as the GST and the QST, if applicable. Upon the full payment, the purchaser (buyer) receives a certificate of adjudication.  The methods of payment accepted are as follows:
• Cash;
• Certified check, bank money order, bank draft labeled to the MRC Brome-Missisquoi;
• All other payment methods offering the same guarantees;
• Please note that taxes are applicable on vacant lots in accordance with the law.

If the buyer cannot pay the FULL amount due, the immovable is relisted immediately.
It is the bidder’s responsibility to conduct all necessary research before the sale, in order to understand, without limitation, the building’s condition related to the zoning, its specific location and any other relevant data or constraints.   The buyer shall take the immovable in the state in which it was at the time of the adjudication, without any warranty, notably of area, of the quality of the soil or buildings therein, if any, or of the defects, even latent, which could affect the immovable.  The sale is made without legal warranty, at the buyer’s risk.
Moreover, the people who will provide their GST and QST registrations at the time of sale, will have to self-assess and be responsible for paying the taxes to the authorities concerned.
In addition, in the absence of a clear mandate, the agent will be deemed to act on his own behalf, if applicable.
Special provisions describe below as to whether one wants to become the buyer of an immovable in the context of the sale for non-payment of taxes (as an indication only):

• Starting price at the auction: There is no legal rule regarding the starting price of an immovable at the auction. However, the representative from local municipality can make the first bid to protect municipal and school claims, as well as all related fees. The suggested amount for the initial starting price is fixed by the MRC by the sum of municipal taxes, school taxes, MRC fees and disbursements and legal costs (according to the legal tariffs in force in civil matters).  This amount is indicated in the list of buildings likely to be sold, when posted on the same page (approximately from mid-April to the day of sale);
• Maintenance of the building: the buyer becomes liable in the same degree as the former owner, which means that the buyer collect rent where applicable, pay municipal and school taxes and the buyer must maintain and ensure ownership of the immovable. However, during the one-year period following the adjudication of the immovable, the buyer cannot remove timber nor buildings erected on the property (the immovable shall remain as is for the one-year period).

The proceeds of the sale are remitted by the clerk-treasurer to the clerk of the Superior Court of the Bedford district. Following the distribution of the sale proceeds to all creditors (such as the local municipality, school service centre/school board, MRC, Superior Court fees, etc.), all surplus of money shall be return to the owner of the sold immovable.

• The owner of the sold immovable can use his right of withdrawal within one year of the sale to repossess his sold property. The right of withdrawal is done on payment of the amount of the purchase of such immovable with 10% interest.
• Final Adjudication: If the owner of the sold immovable did not exercise his right of withdrawal on the anniversary date of the one year period of the sale, the buyer can obtain a final sales contract produced by the notary of his choice, at his cost. The title which conveys the ownership of the immovable awarded grants to the buyer all rights of the original owner, and purges the immovable from all hypothecs, subject to the law.

The content of this page does not constitute a legal or fiscal advice. It is intended to provide general information.  Those interested should seek advice from the professionals of their choice, as needed.

For general information:

Mrs. Johanne Alix, 450-266-4900 ext. 229 or at jalix@mrcbm.qc.ca.