The City of Burnaby posted 34 properties for its annual tax sale on Sept. 28, but by the time the buyers arrived, only four homes were left.
That number dropped down to three when the owner of one home came to city hall after the auction but before the sale was finalized, and paid the property taxes owed to the city, according to Richard Rowley, the city’s director of finance – revenue services.
However, even the three homes purchased at the auction are not a sure thing, as properties have a redemption period of one year during which the previous owner can pay off the taxes owed plus interest and get their property back. If the property owner does not redeem the home within that year, the city signs the property over to the buyer.
“We have not had a property owner not redeem for a number of years,” Rowley said in an email. “Normally, if there is a mortgage on title then the bank will redeem following the tax sale.”
The yearly sale gives buyers the chance to purchase a home if the property taxes have not been paid two years prior to the current year, according to the city’s website. The city can then sell the property for the upset price: the outstanding taxes, penalties, interest, a five per cent tax sale cost on the combined amount and Land Title Office fees.
The upset price is the minimum bid at the auction, which is held in mid to late September. Buyers have to purchase the homes as is, without any warrantees or guarantees from the city. They’re also required to pay cash (which includes a certified cheque, bank draft or money order, according to the city’s guidelines.)
The city is required to notify all registered owners and charge holders on the property title within 90 days of the tax sale, the city’s website states. But it’s not a total gamble for the buyer, as they get back the money they paid plus interest up to the date the property was redeemed by the owner.
The tax sale has become more popular over the past three years, according to Rowley.
“I would estimate there were around 30-40 people in attendance,” he said of the 2015 sale.
For more information, go to http://tinyurl.com/BurnabyTaxSale.
