Sale of immovables for non-payment of taxes
Under the Municipal Code of Québec and intermunicipal agreements, MRC of Brome-Missisquoi must carry out the sale of immovables for non-payment of taxes on behalf of the local municipalities in the MRC (excluding the towns of Bedford and Farnham).
The sale of immovables for non-payment of taxes is held annually on the second Thursday of June at 10 a.m., typically at the MRC of Brome-Missisquoi administrative office (749 Principale Street, Cowansville).
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For local municipalities and school service centres (school boards), the sale of immovables for non-payment of taxes is one of the debt collection tools provided for in the Municipal Code. For reference purposes only, the process generally occurs as follows:
- The local municipality with unpaid taxes must do everything in its power to inform the owner of the immovable in question that they have not paid their taxes and that they are required to pay the total before a fixed date. Failure to do so will result in the issue escalating to the MRC, which will conduct the sale of their immovable on the second Thursday of June of that year. Note: There are fees associated with unpaid taxes and interest (at least $450).
- The local municipality sends the list of immovables to be sold for non-payment of taxes to the MRC by March 31.
- The MRC sends a final notice to each owner by registered mail. It then publishes a public notice of sale for non‑payment of taxes (list of immovables up for sale) twice in the local newspapers in mid-April to inform the owner that their immovable will be sold for non-payment.
- The owner of an immovable for sale for non-payment of taxes has until the morning of the auction to remove their immovable from the list by paying ALL taxes and fees incurred during the process, by cash, bank transfer or certified cheque, money order, bank draft or any other method of payment offering the same guarantees.
On the second Thursday of June, MRC Brome-Missisquoi adjudicates immovables to the highest bidder, who must pay the amount bid IN FULL. The following payment methods are accepted:
- Cash
- Certified cheque, money order or bank draft made out to MRC Brome-Missisquoi
- Any other method of payment offering the same guarantees
Please note that vacant lots are taxed according to law.
If the winning bidder is unable to pay the amount IN FULL, the immovable is immediately auctioned off again.
Upon FULL payment, the purchaser receives a certificate of adjudication. The sale is made without legal warranty (any person interested in acquiring a property must conduct their own research on said property, particularly with the local municipality). The purchaser is thereupon vested with ownership of the adjudicated property and may take possession of it, subject to the right of withdrawal that may be exercised by the owner of the sold property or its legal representatives within one year following the sale.
The proceeds of the sale are remitted by the Clerk-Treasurer to the clerk of the Superior Court of the district of Bedford to be distributed. If money remains after distributing the proceeds of the sale to all creditors (the local municipality, school service centre / school board, MRC fees, Superior Court fees, etc.), it will be remitted to the owner of the immovable sold for non-payment of taxes.
- The owner of the property sold due to non-payment of taxes, or their legal representatives, has a right of withdrawal for a period of one year. This right allows them to repossess the property by paying the auction amount plus 10% interest. Of this 10%, 7.5% will be paid to the auctioneer.
- Final adjudication: If the owner of the property sold due to non-payment of taxes, or their legal representatives, do not exercise the right of withdrawal within one year from the date of the sale, the auctioneer has the option to have a final sale agreement drawn up by a notary of their choice, at their own expense. The transfer of ownership deed gives the auctioneer all the rights of the owner and, subject to the law, clears the property of any mortgages.
If you intend to purchase an immovable at a tax sale, here are some special provisions to keep in mind (for reference only):
Initial starting price: There are no rules regarding the initial starting price. However, the representative of the local municipality may make the first bid in order to protect municipal, school debts, and any associated costs.
Upkeep: The purchaser is responsible for the immovable, just as the former owner was. This means that the purchaser receives any rent payments, pays municipal and school taxes and must maintain and insure the property. However, in the year following the auction, the purchaser may not remove timber or buildings from the property.
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FAQ
When an owner fails to pay their municipal and/or school taxes, their municipality can send the case to the MRC for help recovering the taxes owed via an auction, when necessary.
Adjudication is the sale of an immovable at auction.
The purchaser is the person who buys the immovable at auction.
From mid-April to mid-June, the list is posted on the MRC’s website and updated until the day of auction, whenever the MRC receives a payment. The list is published twice in April in the local newspapers.
The following methods of payment are accepted: cash, certified cheque or bank draft, money order made out to MRC Brome-Missisquoi or any other method of payment offering the same guarantees.
Anyone can remove an immovable, but only on behalf of the owner (i.e., the owner retains ownership of the immovable).
Can I submit a bid prior to the auction?
Prior to the auction, bidders are responsible for finding and confirming any information they consider useful or important about the appraisal, buildings, expenses and restrictions and any other information about the immovable for sale.
No registration is required.
You should bring the maximum amount you are willing to invest in the immovable(s) you wish to purchase.
Multiple immovables can be purchased with the same bank draft as long as the total does not exceed the amount the certified cheque or bank draft is made out for. If funds remain, they will be reimbursed by MRC Brome-Missisquoi via cheque in the days following the sale.
Only the immovables for which owners have not paid their debts by auction day will be up for sale.
No, it’s not possible to visit a house that’s up for auction.
No, all sales are made without legal warranty, at the buyer’s risk and peril.
Yes, but you must have a signed power of attorney or a resolution, depending on the circumstances.
No, there is no minimum or maximum bid amount, subject to a starting bid by the municipality.
No, at the MRC Brome-Missisquoi, the purchaser must pay the amount bid immediately. Failure to immediately pay in full will result in the immovable going back up for auction.
You must pay the bid amount plus GST and QST on all sales, unless it’s an apartment building or you can present a valid federal and provincial registration number. In these cases, you will be responsible for paying the appropriate authorities.
The purchaser may not remove any wood or structures from the property sold during the first year of ownership. It is the responsibility of the auctioneer to make separate arrangements to be reimbursed for the costs of any necessary repairs and/or improvements by the property owner or the person acting on their behalf, if applicable.
The purchaser may approach a notary of their choice to obtain a final deed of sale from the MRC at their own expense. The purchaser is responsible for completing the final sale steps.
It is up to the purchaser to take the necessary legal steps in order to obtain delivery of the adjudged immovable, when necessary.
The MRC provides no guarantee that the sale will purge a hypothec or charge.
In general, section 1048 of the Municipal Code provides that:
“The sale effected under this Chapter is a title which conveys the ownership of the immovable sold. It vests in the purchaser all the rights of the original owner, and purges the immovable from all hypothecs whatsoever to which it may be subject, except, under reserve of the last paragraph, claims for constituted ground rents, for seigniorial dues and for rents substituted therefor, and the amounts for which such immovable may be encumbered for the payment of municipal bonds issued in aid of the construction of railways and other public undertakings; and except also the rights of trustees, for the amount of any assessment imposed on such immovable for defraying the cost of building or repairing any church, sacristy, parsonage or cemetery, provided that at least eight days before such sale, the chairman of the trustees has lodged with the clerk-treasurer of the regional county municipality, whose duty it is to make such sale, a statement attested under oath before a justice of the peace, and establishing the amount of such assessment for which the immovable is liable. […]”
Notice
The content, questions and answers found on this page do not constitute legal advice. All information is for general information purposes. It is up to any interested party to consult a notary or lawyer for legal advice, as needed.