Montreal Property Tax Sale Procedure: Tax Sale Auctions

Once a year the city of Montreal along with the Comité de gestion de la taxe scolaire auction off all the properties that have not paid their tax bill in full. Montreal property tax sales is a great way to pick up properties for much less than they are worth. Before you think about how great it would be to get a great deal on real estate, you need to know how the procedures to follow to participate in the Montreal tax sale.

What is the Montreal Tax Sale Process?

The Montreal tax sale auctions occur once a year in late autumn. In order to participate, you must present yourself early to sign up. A revised list of properties will be produced and handed to everyone that is registered to bid. Once the tax sale begins, the properties will be auctioned off one by one in order that they appear on the list.

To make a bid, bidders must identify themselves, giving their name, address, occupation and mention if they are bidding for themselves or on behalf of someone else. Once the auction for a property is finalized, the buyer must pay the property in full along with any taxes. Payments are to be made in cash, certified check of bank draft.

What documents do you need to participate?

To participate, any person must produce a valid photo ID. Medicare card, driver’s license, passport or any other official photo document is acceptable.

What forms of payment are accepted?

The buyer must pay the full amount of the purchase immediately:

* In cash

* By certified cheque

* By bank draft

NOTE THAT CREDIT AND DEBIT CARDS ARE NOT ACCEPTED

What happens if the certified check is not the right amount?

If the buyer has a certified check of an amount greater than the bid, the difference will be returned to him by the city in a delay of 10 days. The surplus amount can also be applied towards another property if the buyer has made more than one bid. If the check is less than the amount required, the property will immediately be put back for sale and the buyer will be responsible for paying the difference his bid and the actual final sales price of the auction.

Are there conditions to the sales?

Yes. All properties are bought site unseen at the risk and perils of the buyers. This means that you cannot change your mind after the fact. Also, the previous owner may, within a period of one year, purchase the property back from the auction buyer for the amount he paid plus 10% yearly interest. This is known as the right of redemption and is an absolute right. The buyer cannot contest this right.

Will I really only pay the tax amount for the property?

It is possible but unlikely. You have to expect that many buyers will be interested in the Montreal Property Tax sale and since this is an auction, the price will surely be higher than just the tax bill.

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