.
DIVISION 1
GENERAL
Definitions
339 In this Part,
"taxes" means
(a) taxes or fees imposed under Part 10 (Powers of Taxation), and
(b) all other amounts, including penalties, that under this or any other Act are or may be added to taxes or may be collected in the same manner as taxes may be collected; (« taxes »)
"tax arrears" means taxes that remain unpaid after the day on which they are due. (« arriéré de taxes »)
Application of payments
340(1) An amount paid on account of taxes in respect of a business or property must be applied first to the payment of tax arrears, in the order in which they arose, in respect of the business or property.
Application to tax on specific property or business
340(2) An amount paid on account of taxes must be applied to the taxes payable in respect of
(a) the property or business designated by the taxpayer; or
(b) if no property or business is designated by the taxpayer, one or more properties or businesses of the taxpayer designated by the designated officer.
Tax certificate
341(1) On request and payment of a fee prescribed by by-law, a designated officer must issue a tax certificate showing
(a) the taxes for the year in respect of the property or business specified in the request, and any amount paid;
(b) any tax arrears owing in respect of the property or business as of the date of the certificate;
(c) whether the lands are assessed for farming purposes under section 17 of The Municipal Assessment Act.
Certificate binding
341(2) Subject to subsection 301(1) (error or omission based on false information), a tax certificate issued under subsection (1) is binding on a municipality but does not prevent the municipality from imposing supplementary taxes after the date of the certificate for a period before that date.
Collection remedies
342(1) A municipality may attempt to collect or to enforce the payment of taxes in accordance with any or all remedies provided for in this or any other Act, and, except as otherwise provided, the use of one remedy does not prevent the use of another remedy in respect of the same taxes.
Debt to municipality
342(2) Each amount payable to a municipality under this Part or Part 10 (Powers of Taxation), whether it is a tax, a penalty, a recoverable cost of seizure or sale payable by a taxpayer or an amount payable by a third party in respect of the tax arrears of a taxpayer, is a debt owing to the municipality by the person liable to pay the amount and is recoverable in a court of competent jurisdiction.
Repayment of taxes paid under protest
343(1) If taxes in respect of a property or business are paid under protest and the assessment roll is later amended to reflect a reduction in the assessed value for the year in respect of which the taxes were paid, the municipality must
(a) redetermine the taxes payable based on the revised assessed value and amend the tax roll for the year accordingly;
(b) refund to the taxpayer the excess taxes that were paid under protest; and
(c) pay interest on the excess taxes to the taxpayer, from the date they were paid, at an annual rate prescribed by regulation by the minister for each calendar year, or any part thereof, which rate must be prescribed at least once in the year.
Limited entitlement to repayment
343(2) No person is entitled to the repayment of amounts paid on account of taxes except under the circumstances described in subsection (1).
Appeal constitutes payment under protest
343(3) Where a taxpayer appeals an assessment under The Municipal Assessment Act and, before the final disposition of the appeal, pays the taxes based on the assessment under appeal, the taxes shall be considered to have been paid under protest.
No further assessment appeal
343(4) Nothing in this section enlarges or extends the rights of any person to appeal an assessment under The Municipal Assessment Act.
DIVISION 2
INCENTIVES AND PENALTIES
Discount for prepayment
344 A council may by by-law allow a discount, subject to any limitation prescribed by the minister by regulation, for the prepayment of taxes on or before a date specified in the by-law.
Instalments
345 A council may by by-law
(a) allow taxes to be paid in instalments; or
(b) require taxes imposed in respect of mobile homes located in mobile home parks to be paid in instalments.
"Tax arrears" excludes current year's penalties
346(1) For the purpose of this section, "tax arrears" at any time in a year excludes penalties imposed under this section at any time in that year.
Penalties
346(2) A council may by by-law
(a) set a rate, subject to any limitation prescribed by the minister by regulation, at which penalties may be imposed in respect of tax arrears; and
(b) impose penalties at that rate.
Penalty imposed monthly
346(3) Subject to subsection (4), a penalty under subsection (2) may be imposed at the beginning of the month whether or not the tax arrears are paid at any time during the month.
Limitations
346(4) No penalty may be imposed in respect of unpaid taxes
(a) in the case of supplementary taxes, for the first 90 days; and
(b) in any other case, for the first 30 days;
after the tax notice regarding the taxes is sent to the taxpayer.
Penalties added to taxes
346(5) Penalties imposed under subsection (2) and remaining unpaid at the end of a year must be added to and form part of the tax arrears in respect of which they were imposed.
DIVISION 3
LIENS FOR TAXES
Special lien on land and improvements
347(1) A municipality has a lien on land and improvements for the amount of the taxes in respect of the land and improvements.
Special lien on personal property
347(2) A municipality has a lien on all the personal property of a taxpayer for the amount of the taxes in respect of any personal property or business of the taxpayer.
Priority of lien
347(3) A lien under this section
(a) does not require registration to preserve it;
(b) is not defeated by a change in ownership of property; and
(c) unless otherwise provided in this or any other Act, is payable in priority over the claims, liens or encumbrances of every person except the Crown and, for greater certainty, that priority extends over every registered mortgage, encumbrance, assignment, debenture or other security interest made, given, accepted, issued or arising before or after the coming into force of this Act or before or after the lien arose.
Priority of lien for taxes
347(4) A lien for taxes is payable in priority over all other fees, charges, liens or claims, except
(a) the costs of a seizure and sale, or of any proceedings to recover possession, of property covered by the lien;
(b) claims for wages or salary, not exceeding three months, for which provision is made in The Executions Act, the Bankruptcy Act (Canada) or any applicable law relating to winding-up;
(c) a thresher's lien under The Threshers' Liens Act; and
(d) a claim under a valid seed grain mortgage registered under The Personal Property Security Act or the claim of a mortgagee or vendor having effect as a seed grain mortgage under The Mortgage Act.
Effect of bankruptcy or winding-up
347(5) Where property that is subject to seizure and sale for taxes was held by a trustee in bankruptcy or a liquidator under a winding-up order, the priority of the lien for taxes extends to all taxes that became due in respect of the property before
(a) in the case of a bankruptcy, the date of the authorized assignment in bankruptcy or order in bankruptcy; or
(b) in the case of a winding-up order, the date of the order.
DIVISION 4
SEIZURE AND SALE OF GOODS
Definition
348 In this Division, "goods" includes chattels and growing crops.
Seizure for taxes
349(1) A municipality may recover
(a) tax arrears; and
(b) the costs of seizure and sale payable under The Distress Act;
by seizing and selling goods found on the lands or in the premises in respect of which the taxes were imposed or in the possession of the taxpayer, wherever found.
Warrant for seizure
349(2) A council may authorize the chief administrative officer to
(a) issue a warrant for the seizure and sale of goods under subsection (1); and
(b) name in the warrant a person or persons to make the seizure and sale;
and the person or persons so named may make the seizure and sale.
Exemption from seizure
349(3) Despite subsection (1), a municipality may not seize or sell
(a) goods exempt from seizure under The Landlord and Tenant Act;
(b) subject to subsection (4), goods that are the property of a person, other than the taxpayer, who purchased them in good faith and claims the goods before the seizure or sale; or
(c) a vendor's or lessor's share of a crop grown upon lands other than the lands in respect of which the taxes in arrears were imposed.
Limitation on exemption
349(4) Clause (3)(b) does not exempt from seizure or sale
(a) goods in which the taxpayer has an interest as purchaser or under an agreement by which the taxpayer may become the owner of the goods upon the performance of a condition; or
(b) goods that are the property of the spouse or common-law partner or a parent, child, son-in-law, daughter-in-law, brother, brother-in-law, sister or sister-in-law of the taxpayer.
S.M. 2002, c. 24, s. 42.
Entry to seize goods
350 A person authorized by a warrant to seize and sell goods may enter the land and break open and enter a building, yard or place where the goods liable to seizure may be situated, and the person may seize the goods and remove them.
Service of warrant
351 A person seizing goods under the authority of a warrant must give a copy of the warrant to the taxpayer by personal service or by leaving a copy of the warrant with an adult at the taxpayer's residence in the municipality, or, if the taxpayer does not reside in the municipality or there is no adult at the taxpayer's residence in the municipality, by posting a copy of the warrant on a conspicuous part of the land, building, yard or place from which the goods were seized.
Acknowledgement
352 An acknowledgement by a taxpayer that his or her goods are under seizure for the non-payment of taxes is of the same force and effect as an actual seizure of the goods.
Release not to prejudice municipality
353 A municipality may release some or all of a taxpayer's seized goods on payment of part of the tax arrears without prejudice to its right to use any remedy, including seizure and sale, to recover the balance of the arrears.
Limited liability for seized goods
354 A municipality is not liable for the loss or destruction of goods under seizure except to the extent that the loss or destruction resulted from the negligence of the municipality or its employees or agents.
Growing crops
355(1) Where a municipality seizes growing crops, it may cut, gather, cure, thresh, carry, store or remove them, and may recover, in addition to the amounts recoverable under clause 349(1)(b), the related expenses as part of the costs of the seizure.
Sale of crops
355(2) Seized crops may be sold at current market prices without notice and without holding a public auction.
Sale by public auction
356(1) Seized goods, other than growing crops, may be sold only by public auction.
Notice of auction
356(2) At least 30 days before an auction of goods seized for taxes, the chief administrative officer must post a notice in the municipal office setting out
(a) the time and place of the proposed auction; and
(b) a list of the goods to be sold at the auction.
Surplus proceeds of sale
356(3) If the proceeds of a sale of seized goods are greater than the total of the tax arrears and recoverable costs of the seizure and sale, the municipality must pay the surplus
(a) to the person in whose possession the goods were when they were seized; or
(b) if another person claims the surplus, into court to be paid out as the court orders.
Order for seizure and sale before taxes due
357(1) Where the court is satisfied, on the application of a municipality, that there are reasonable and probable grounds to believe that, after a tax notice has been sent to a taxpayer and before the due date specified in the notice, the taxpayer intends to remove from the municipality goods that may be liable to seizure under this Division, the court may issue an order permitting a person or persons to collect the taxes, and the related costs of seizure and sale, by seizing and selling goods in accordance with this Division.
Application without notice
357(2) An application under subsection (1) may be made without notice.
Application for restitution
358(1) A person whose goods have been seized under this Division may, within 30 days after the seizure or such additional time as the court allows, apply to the court for an order under this section.
Order for restitution
358(2) Where, upon hearing an application under subsection (1), the court is satisfied that the applicant does not owe tax arrears to the municipality in the amount alleged by the municipality, the court may order
(a) the municipality to
(i) return, if possible, some or all of the seized goods to the applicant, or
(ii) make restitution to the applicant in an appropriate amount, including the applicant's costs of obtaining the order; or
(b) such other relief as is just in the circumstances.
No further assessment appeal
358(3) Nothing in this section enlarges or extends the rights of any person to appeal an assessment under The Municipal Assessment Act.
DIVISION 5
MISCELLANEOUS REMEDIES
Removal of improvements
359 If improvements are removed from particular lands within a municipality to other lands within the municipality
(a) without the prior written consent of the municipality; and
(b) before taxes imposed in respect of the particular lands or the improvements have been paid;
the municipality may add all or any part of those taxes to the taxes imposed in respect of the other lands and may collect them in the manner that taxes on the other lands may be collected.
Demand to tenant
360(1) If a landlord's taxes are in arrears, a municipality may, by written notice to the landlord's tenant, require the tenant to pay his or her rent, as it becomes due, to the municipality until the tax arrears are paid.
Copy of notice to landlord
360(2) The municipality must send a copy of each notice under subsection (1) to the landlord by regular mail.
Discharge of tenant's liability
360(3) The payment by a tenant to a municipality of an amount demanded under subsection (1) discharges the tenant's liability for the payment of rent to the landlord to the extent of the payment.
Notification of insurance proceeds
361(1) Before paying out any insurance proceeds payable in respect of the loss or destruction of or damage to property subject to tax under this Part, the insurer must notify the municipality that insurance proceeds are payable.
Content of notice
361(2) A notice under subsection (1) must specify or include
(a) the location and a description of the property in respect of which the insurance proceeds are payable;
(b) the name and mailing address of the insured and of any other person otherwise entitled to receive the insurance proceeds; and
(c) the amount of the insurance proceeds payable.
Demand for payment
361(3) If a property is destroyed or damaged and taxes in respect of the property or lands on which the property was located are in arrears, the municipality may, by written notice sent to the insurer within seven days after receiving the notice under subsection (1), require the insurer to pay the insurance proceeds to the municipality to the extent of the tax arrears, and the insurer shall pay the insurance proceeds to the municipality accordingly.
Application of subsection (3)
361(4) Subsection (3) applies despite any provision to the contrary in this or any other Act or in any agreement made or entered into before or after the coming into force of this Act or before or after the taxes became due.
Waiver
361(5) Where a municipality is satisfied that property in respect of which insurance proceeds are payable will be rebuilt, repaired or replaced and that the municipality will have a lien under this Act on the repaired or replacement property for the tax arrears, the municipality may
(a) waive its right under subsection (3) to receive the insurance proceeds; or
(b) pay the insurance proceeds to the person or persons otherwise entitled to receive them.
Demand to purchaser of oil or natural gas
362(1) If taxes imposed by a municipality on a taxpayer in respect of oil, natural gas or salt production equipment are in arrears, the municipality may, by written notice sent to a purchaser of oil or natural gas originating in a well owned or operated by the taxpayer, require the purchaser to remit to the municipality all amounts that are or become due and payable to the taxpayer in respect of the oil or natural gas, to the extent of the tax arrears.
Content of notice
362(2) A notice under subsection (1) must
(a) state the name and address of the taxpayer;
(b) identify the well or wells that are owned or operated by the taxpayer and from which the purchased oil or natural gas originated; and
(c) specify the amount of the tax arrears.
Copy of notice to taxpayer
362(3) The municipality must send a copy of each notice under subsection (1), by regular mail, to the taxpayer in respect of whom the notice was sent.
Purchaser to remit
362(4) A purchaser of oil or natural gas who has received a notice under subsection (1) must remit amounts to the municipality in accordance with the notice as they become due and payable.
Discharge of purchaser's liability
362(5) The payment by a purchaser to a municipality of an amount required under subsection (1) to be paid in respect of a taxpayer discharges the purchaser's liability to the taxpayer to the extent of the payment.
DIVISION 6
TAX SALES OF REAL PROPERTY
Definitions
363(1) In this Division,
"costs", in relation to a property, means the total of
(a) the expenses incurred by a municipality in connection with the collection of tax arrears in respect of the property, including a sale or proposed sale of the property for taxes, and
(b) an administration fee as prescribed by the minister by regulation; (« frais »)
"designated year" means
(a) the fifth year preceding the current year, or
(b) such later year as is designated by the council under subsection 365(2); (« année désignée »)
"district registrar" means a person appointed under The Civil Service Act as district registrar for a land titles district under The Real Property Act; (« registraire de district »)
"property" means land other than Crown lands as defined in section 334 and includes improvements on the land. (« bien »)
Interpretation
363(2) For the purpose of this Division,
(a) taxes in respect of a property are in arrears for a particular year if a portion of the tax arrears was due before the year; and
(b) the tax arrears for the designated year is that portion of all the tax arrears in respect of the property that was due before the year.
Non-application of Real Property Act
363(3) Subsections 45(1) to (4) of The Real Property Act do not apply to tax sale applications made under this Division.
Tax arrears list
364 Each municipality must maintain and keep posted in the municipal office a list, in a form approved by the minister, that
(a) identifies each property in the municipality the taxes in respect of which are in arrears for more than one year; and
(b) for each such property, shows the tax arrears for each year.
S.M. 1998, c. 33, s. 36.
Mandatory auction
365(1) In each year, a council must offer for sale by auction every property in the municipality that
(a) has taxes in arrears for the designated year; and
(b) meets the criteria for sale by auction established by regulation.
Council may designate year
365(2) The council may in any year designate the immediately preceding year or any earlier year as the year for which properties the taxes in respect of which are in arrears for the year must be offered for sale by auction to recover the tax arrears and costs.
Sale by public auction
365(3) A municipality may not sell a property for taxes except by public auction under this Division.
Limitation
365(4) Subject to subsection 370(3), a municipality may sell a property for taxes at an auction only if each other property in the municipality the taxes in respect of which are in arrears for the designated year is offered for sale at the auction.
S.M. 1999, c. 28, s. 12.
Notice of tax sale
366(1) At least 120 days before conducting an auction, the municipality must present to the Land Titles Office for registration a notice of tax sale, in a form approved by the Registrar-General, for each property to be offered for sale at the auction.
Registration of notice
366(2) Upon receipt of a notice of tax sale for a property, the district registrar must accept it for registration and enter it on the title to the property or, if the property is under the old system as defined under The Real Property Act, in the abstract book for the property.
Directions for service of notice
366(3) If a person has, at the time of registration of a notice of tax sale in respect of a property, a registered interest in the property that would be affected by the sale, the district registrar must provide to the municipality the person's name and
(a) the person's most recent address for service shown on the records of the Land Titles Office; or
(b) if no address for service is shown on the records of the Land Titles Office, directions for substitutional service.
Different directions for different properties
366(4) For the purpose of clause (3)(b), the district registrar may provide different directions for substitutional service for different properties and may
(a) allow the municipality to dispense with service of the notice if the property has an assessed value, for the year in which the notice is presented for registration, of less than $1,000.; or
(b) direct the municipality to make efforts to ascertain an address for service, and following those efforts, provide further directions for service.
First notice of auction
367(1) At least 90 days before the auction of a property, the municipality must give notice of the auction to
(a) the registered owner of the property at the address shown on the most recent tax notice issued in respect of the property, by personal service on the registered owner or an adult person residing at that address;
(b) the persons for whom the district registrar has provided addresses under clause 366(3)(a), by any delivery service whereby the sender is provided with an acknowledgement of receipt; and
(c) the persons for whom the district registrar has provided directions for substitutional service under clause 366(3)(b), in accordance with those directions.
Second notice of auction
367(2) Between 30 and 50 days before the auction of a property, the municipality must give a second notice of the auction to
(a) the registered owner of the property at the address shown on the most recent tax notice issued in respect of the property, by any delivery service whereby the sender is provided with an acknowledgement of receipt;
(b) the persons for whom the district registrar has provided addresses under clause 366(3)(a), by any delivery service whereby the sender is provided with an acknowledgement of receipt; and
(c) the persons for whom the district registrar has provided directions for substitutional service under clause 366(3)(b), in accordance with those directions.
Application for substitutional service of notice
367(3) If the municipality is unable to obtain an acknowledgement of receipt under subsection (1) or (2), it may apply to the district registrar for directions for substitutional service of a first or second notice of auction, or both.
District registrar may grant substitutional service
367(4) When a municipality applies under subsection (3), the district registrar may grant directions for substitutional service of a first or second notice of auction, or both, on any person eligible to receive notice under this section.
Compliance with directions for service
367(5) Compliance with the district registrar's directions for substitutional service of a first or second notice of auction on a person is deemed to be compliance with notice requirements for a first or second notice of auction on that person.
Content of notice of auction
367(6) A first or second notice of auction must be in a form approved by the minister and state that unless the tax arrears for the designated year and costs are paid to the municipality before the auction begins, or an agreement to pay the arrears and costs is made under clause 369(1)(b) before the auction begins,
(a) the municipality may offer the property for sale at the auction;
(b) the property may be sold at the auction for less than the amount of the tax arrears; and
(c) if the property is sold, the sale is final and any interest the person had in the property before the sale is extinguished.
Public notice of auction
367(7) A municipality must give public notice of the properties to be offered for sale at the auction by
(a) posting a notice of auction in the municipal office, on or near the affected property, and at two other public places in the municipality at least 30 days before the auction; and
(b) publishing a notice of auction on two occasions, the first at least 21 days and the second at least 14 days before the auction, in a newspaper or other publication having general circulation in the municipality.
Content of public notice of auction
367(8) The public notice of auction must state
(a) the date, time and location of the auction;
(b) a description of each property to be offered for sale;
(c) the assessed value of each property; and
(d) the amount of arrears and costs owed to the municipality for which each property may be offered for sale.
S.M. 1999, c. 28, s. 13.
Municipality entitled to possession
368(1) From the date on which a notice is posted under clause 367(7)(a) in respect of a property, the municipality is entitled to possession of the property.
Order for possession
368(2) To obtain possession of a property, a designated officer of the municipality may enter and take possession of it for and in the name of the municipality and, if resistance is encountered, the municipality may apply to the court for an order for possession.
S.M. 2001, c. 30, s. 10.
Cancellation or adjournment of auction
369(1) A municipality may cancel or adjourn an auction of a particular property at any time before it begins if
(a) the outstanding balance of tax arrears and costs is reduced to such an amount that the property is no longer subject to sale by auction according to regulation;
(b) the property owner enters into an agreement with the municipality for payment of the arrears and costs; or
(c) the municipality cancels or adjourns the auction of all properties offered for sale.
Outstanding balance remains owing
369(1.1) Any outstanding balance of tax arrears and costs on a property that remains owing after an auction is cancelled under subsection (1) must be added to that property's taxes in the next year.
Notice of cancellation or adjournment
369(2) If an auction is adjourned or cancelled, the municipality must
(a) post a notice of the adjournment or cancellation at the time and place for which the auction was originally scheduled; and
(b) where the auction is rescheduled,
(i) post a notice of the rescheduled auction in the municipal office at least 14 days before the new date, and
(ii) if known at the time of posting the notice under clause (a), include in that notice a notice of the rescheduled auction.
Continuing in possession
369(3) If an auction of a property is adjourned or cancelled and the taxes in respect of the property remain in arrears, the municipality continues to be entitled to possession of the property and, if the property is unoccupied, the municipality may grant a lease, licence or permit in respect of the property for a term of not more than one year and may renew the lease, licence or permit for periods totalling not more than one year.
Application of money
369(4) Money paid to a municipality under a lease, licence or permit under subsection (3) in respect of a property must be applied against the tax arrears and costs in respect of the property.
S.M. 1999, c. 28, s. 14.
Declaratory relief
370(1) A person who
(a) has an interest in property that is to be sold for taxes; and
(b) claims that taxes in respect of the property are not in arrears for the designated year;
may apply to the court for an order declaring that taxes in respect of the property are not in arrears for the designated year.
Time limit
370(2) An application under subsection (1) in respect of a property to be auctioned must be filed in the court and served on the municipality before the date of the proposed auction.
Adjournment of tax sale pending outcome of application
370(3) Despite subsections 365(1) and (4) and 369(1), the auction of a property in respect of which an application is made under subsection (1) must be adjourned pending the outcome of the application.
Time for payment of arrears and costs
371(1) Any person may pay the tax arrears for the designated year and costs in respect of a property before the commencement of the auction at which the property is offered for sale.
Tax arrears paid
371(2) If before the commencement of an auction the tax arrears for the designated year and costs in respect of a property are paid to the municipality,
(a) the property must not be sold at the auction; and
(b) the chief administrative officer must present to the district registrar for registration a discharge of the notice of tax sale in respect of the property.
Conditions of sale, reserve bid
372 A municipality may set any terms or conditions for the sale of a property to be sold for taxes, and may set a reserve bid in the amount of the tax arrears and costs in respect of the property.
Prohibited bidders, purchasers and agents
373 Unless acting as an agent of a municipality in a purchase by a municipality under section 374, the following persons must not bid for, buy, or act as an agent in buying a property offered for sale at an auction:
(a) the auctioneer;
(b) a member of council;
(c) the chief administrative officer, or at the discretion of the municipality, a designated officer of the municipality;
(d) a spouse, common-law partner or dependant family member residing with any of the persons described in clauses (a) to (c);
(e) a person in which any of the individuals mentioned in clauses (a) to (c) has a pecuniary interest.
S.M. 1999, c. 28, s. 15; S.M. 2002, c. 24, s. 42.
Municipality may bid
374 A municipality may bid on and purchase property at a public auction and may direct a designated officer of the municipality to bid on or purchase property on its behalf.
Sale of property
375(1) A property is sold at a public auction when the auctioneer declares it sold.
Sale for reserved bid
375(2) If a municipality has set a reserve bid in respect of a property and no person bids more than the amount of the reserve bid, the auctioneer must declare the property sold to the municipality for the amount of the reserve bid.
Sale for less than tax arrears and costs
375(3) If a property is sold at an auction for less than all of the tax arrears and costs in respect of the property, the balance of the arrears and costs is deemed to be cancelled.
No sale
375(4) If a property offered for sale at a public auction is not sold, the ownership of the property remains unchanged, the tax arrears in respect of the property remain due and owing and the property must remain on the tax arrears list maintained under section 364.
Tax sale application
376(1) After a purchaser has satisfied the terms and conditions of a sale of property under this Division, the municipality must provide to the purchaser for filing in the Land Titles Office
(a) a tax sale application; and
(b) evidence satisfactory to the district registrar regarding service of the notice of tax sale under section 367.
Application in name of municipality
376(2) If the municipality is the purchaser of property it may issue a tax sale application in its own name.
Challenge to tax sale
377(1) No tax sale may be challenged or set aside except on the grounds that the sale was not conducted in a fair and open manner or that notice of the sale was not served in accordance with section 367.
Time for challenge to tax sale
377(2) A person wishing to challenge the tax sale of a property must, within 30 days after the date of the auction at which it was sold,
(a) bring an action in the court to set aside the sale; and
(b) obtain and file a pending litigation order in the Land Titles Office.
Registration of tax sale purchaser as owner
377(3) The district registrar must register the purchaser of property at a tax sale as owner of the property if
(a) the purchaser presents a tax sale application, accompanied by evidence satisfactory to the district registrar that notice of the sale was served as required by section 367, for registration at the Land Titles Office; and
(b) no pending litigation order is filed under subsection (2) in respect of the sale within 30 days after the date of the auction.
Title of purchaser
377(4) Except as otherwise provided in The Real Property Act, the registration of title to a property sold for taxes in the name of the tax sale purchaser extinguishes every interest in the property that arose or existed before the property was sold for taxes.
Application to bring property under new system
377(5) A tax sale application in respect of property that is under the system of registration provided by The Registry Act is deemed to be an application to bring the property under the system of registration provided for in The Real Property Act.
Invalid tax sale does not invalidate purchaser's title
377(6) If a tax sale of a property is found by a court to be invalid after title to the property is registered in the name of the tax sale purchaser, no person who held an interest in the property before the sale is entitled to a return of that interest.
Failure to give proper notice
378(1) If the district registrar refuses to register a tax sale purchaser as owner on the grounds that the municipality has failed to properly give notice of the tax sale to a person entitled to notice under section 367,
(a) the municipality must notify the person that, if the tax arrears and costs are not paid to the municipality within 90 days after the date of the notice,
(i) the tax sale may be completed, or
(ii) the property may be sold at another auction; and
(b) if the tax arrears and costs have not been paid within the 90-day period, the tax sale purchaser may, at his or her option, complete or refuse to complete the tax sale.
Incompleted tax sale
378(2) If a tax sale purchaser refuses under clause (1)(b) to complete a tax sale,
(a) all rights of the purchaser arising out of the tax sale are extinguished, except his or her right to a refund of any amount paid to the municipality on account of the purchase price; and
(b) the municipality may offer the property for sale at another public auction and the provisions of this Division, other than section 365 and subsections 366(1) and (2), apply with necessary modifications to that auction.
No action against district registrar
379 No action lies or is maintainable against a district registrar or a Land Titles Office for damages that accrue by reason of any action by the district registrar or the Land Titles Office under this Division.
Surplus proceeds
380(1) If the proceeds of a tax sale exceed the tax arrears and costs by more than $200.,
(a) the municipality must notify each person entitled to notice of the tax sale, in the manner that notice must be given under subsection 367(2), of the excess and that the person may make an application under clause (b) in respect of the excess; and
(b) each person entitled to notice of the tax sale may apply to the court within three years after the auction for an order for the payment to the applicant of all or part of the excess.
Priority of claim to excess
380(2) In making an order under clause (1)(b) in respect of the excess proceeds from the tax sale of a property, the court must have regard to the priority of the applicant's interest in the property in relation to all interests in the property immediately before the sale.
Proceeds of sale to municipality
380(3) For the purpose of this section, the proceeds of a tax sale of a property to a municipality are the amount bid by the municipality, or by another person on its behalf, for the property.
Application of surplus proceeds
380(4) A municipality may apply the excess proceeds of a tax sale to its general revenue to the extent that they are not required by a court order under clause (1)(b) to be paid out.
Registrar General
381 The Registrar-General may
(a) approve the form and content of any notice, application, form or evidence of service that may be filed at the Land Titles Office under this Division; and
(b) set and charge reasonable fees to municipalities and tax sale purchasers for the filing of notices and applications under this Division in a Land Titles Office.
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