ADMINISTRATION
Sale for taxes
In accordance with the Municipal Code of Quebec, and in addition to the by-law promoting the delegation of powers, the MRC, as requested by the local municipalities, has the responsibility to sell the immovable for which payment of municipal and school taxes has been denied by the property owner.
The sale shall take place on the second Thursday of June of each year and it shall be held at the administrative office of the MRC Brome-Missisquoi located at 749 Principale road, Cowansville at 10h am. Thus, as of mid-April you can consult the immovable list that could potentially be sold at the auction (in french only) .
The sale of immovables for non-payment of taxes is a legal option made possible by specific Sections specified in both the Municipal Code of Quebec and the Cities and Towns Act to recover the amount owed by the property owner. The course of action is as follow:
- First and foremost, the municipality which has unpaid taxes of 2 years or more must do everything in its power to inform the owner that the immovable in question will be submitted to the MRC, which shall undertake the legal procedure for the sale of the said immovable on the second Thursday of June of this current year and the municipality shall also inform the owner of the various costs relate to the unpaid taxes and interests;
- By the beginning of March, the municipalities must send their lists of unpaid immovables to the MRC ;
- Publications (2) of the list of unpaid immovables by the MRC in local newspapers as of mid-April in order to inform the owner that his property will be sold as a default of non-payment and the MRC shall send a final and registered notice to each owner who has not yet acquitted the payment due;
- 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 ALL taxes and fees incurred by the proceeding;
- Adjudication by the MRC on the 2nd Thursday of June to the highest bidder, which shall pay in full payment made either in (i) cash, (ii) by an authorization duly given by the bidder’s financial institution with a personal check or (iii) by a certified check. If the buyer can not pay the full amount due, the immovable is relisted immediately. Upon the full payment, the buyer receives a certificate of adjudication. The buyer is thereupon seized of the property and may take possession, subject however to a withdrawal which can be made in the current year by any person authorized or not.
- The owner may repossess his sold property on payment of the following expenses during the one year period in which he can use his right of withdrawal: payment of 10% interest per year or per part of a year + radiation fees and the making of the withdrawal. In such cases, the buyer is fully refunded the amount paid at the auction + 10% interest and + 2.5% fees which goes to the MRC. The withdrawals voids the sale for non-payment of taxes for this precise property;
- Final Adjudication: If the owner sold at the auction did not exercise his right of withdrawal on the anniversary date of the one year period, the buyer has the opportunity to write a final sales contract at by the notary of his choice. 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 privileged and mortgages.
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:
- Non-existence of the immovable sold: the buyer would be entitled to recover what he has paid plus 15% interest per year for a maximum of three (3) years;
- Void sale: the buyer would be entitled to recover what he has paid with 10% interest depending on the prescription;
- Starting price at the auction: There is no set rule for the starting price at the auction, however, the secretary-treasurers from local municipality strive to make the first bid to protect municipal and school claims, as well as all related fees;
- Maintenance of the building: the buyer becomes liable in the same degree as the former owner, which means that the buyer can 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 can not remove timber nor the buildings erected on the property (immovable shall remain as is for the one year period).
For more information : Vanessa Couillard – Extension 278
