I want to buy a property at the tax sale

Property tax sales are governed under the Charter of the Ville de Montréal, metropolis of Québec (R.S.Q. c. C‑11.4) and the Cities and Towns Act (R.S.Q. c. C-19).

• Charter of the Ville de Montréal, metropolis of Québec
• Cities and Towns Act

The Charter of the ville de Montréal gives the city clerk the authority to auction off any property on which municipal taxes due prior to January 1^st, 2018 remain unpaid on the scheduled date of sale.

The tax sale will take place November 5, 2018 at 10:00 a.m. at the Marché Bonsecours (350, rue St-Paul Est).

• I would like to obtain a list of properties to be sold before the sale date. Where can I get it?

  
  The list of properties that are up for sale is avaible (only in french) :

  • in a newspaper of September 19, 2018
  • on the Ville de Montréal Web site. Updates are available here. The final list of properties to be sold for failure to pay back taxes will be distributed on the morning of the sale
  • at the Montréal city clerk’s office in Montréal City Hall at 275, rue Notre-Dame Est, R-134
  • at any point of service of the Ville de Montréal
  • at the Registre foncier du Québec with a registration number (in coming).

  Please note that a fee is charged for copies of the list.

  • Points of service
  • Registre foncier du Québec
   
• Is the list of properties to be sold kept up to date?

  To find out if a property is still up for sale, please consult the updates of the published list or call 311 (island of Montréal) or 514 872-0311 (outside Montréal).

  The final list of properties to be sold for failure to pay back taxes will be distributed on the morning of the sale.

• What documents do I need to participate in the sale?

  Any person wishing to participate in the sale must produce proof of his or her identity (driver’s licence, Québec Medicare card, Canadian passport or any other official document containing the person’s photo).

  • If you are acting on behalf of another individual

  If you are acting on behalf of another individual, you must also produce a power-of-attorney signed by the person you are representing. Otherwise, you will be deemed to be acting on your own behalf.

  • If you are acting on behalf of a business entity (corporation)

  A person representing a business entity must produce the following documents:

  • A true copy of the resolution or bylaw adopted by the board of directors of the business entity designating you as its legal representative.

  And

  • A copy of the “attestation” mentioned in Section 108 of An Act respecting the Legal publicity of enterprises issued by the Registraire des entreprises.

  • An Act respecting the Legal publicity of enterprises
• What is the tax sale process?

  All interested parties should be present at 8:30 a.m. on the day of the sale, so they can sign up and obtain a number. This will facilitate the work of city officials conducting the sale.

  An updated list of properties being put up for sale will be distributed, along with a copy of sale conditions. Anyone wishing to buy a property may consult the unofficial plan made available for further information.

  The tax sale starts at 10:00 a.m. A city official reads the terms of sale and then begins auctioning off the properties in the order in which they appear on the list.

  Please note that an owner can pay the outstanding balance at any time prior to the sale and the property in question will be removed from the list. Properties may, accordingly, be taken off the list at any time of the day.

  When a property is put up for sale, anyone wishing to bid must step up to one of the microphones and do so. Bidders must give their name, address, occupation and state if they are bidding for themselves, for another person or for a business entity.

  The property will, after three calls, be sold to the highest bidder.

  The buyer must at that time pay the full amount of his or her bid along with any applicable taxes (GST/QST), in cash, certified cheque or bank draft. Neither credit nor debit cards will be accepted.

  The city clerk (or the latter’s assistant) will then give the successful bidder a certification of sale by auction.

  Once a sale is finalized, the next property is auctioned.

  • sale conditions [31 KB - 3 pages]
• What forms of payment are accepted at a property tax sale?

  The buyer must pay the full amount of the bid:

  • In cash
  • By certified cheque
  • By bank draft

  CREDIT AND DEBIT CARDS ARE NOT ACCEPTED

• What happens if my certified cheque does not cover the exact amount?

  If a buyer only has a certified cheque for an amount greater than the auction price, the city will refund the difference within 10 days of the sale. However, the city will give the buyer a credit for that amount applicable to the purchase of any other property for the duration of the sale.

  Example: Mr. Gagnon has purchased a property for $10,000. He gives the city a certified cheque made out for $30,000, so the remaining credit of $20,000 can be applied to the purchase of other properties during the sale.

  Mr. Gagnon then buys another property for $7,000. The city reduces Mr. Gagnon’s credit by the same amount, leaving him $13,000, which will be refunded within 10 days.

  If the bidder is not able to pay for his purchase in full, he will be listed as a “false bidder” and the property will be immediately put up for sale again. The bidder is then personally liable for the difference between his bid and the sale price if the latter is less than the former.

  Example: Mr. Gagnon bids $30,000 for a property but does not have the amount with him needed to pay for it. The property is put up for sale again and auctioned to another buyer for $25,000. Mr. Gagnon thus owes the city $5,000—the difference between his bid and the sale price.

I bought a property - My rights and obligations 

The following questions and answers are provided solely for guidance. For information about your rights and obligations we suggest you consult your notary or lawyer. 

• I am unhappy with my purchase. Can I cancel the sale?

  The property is purchased at the buyer’s risk and peril.

• What is the procedure for obtaining a final deed of sale?

  The buyer must retain the services of a notary of his or her choosing. The notary will then prepare a final deed of sale. The buyer is responsible for assuming all of the costs involved in obtaining a final deed for the property that has been purchased at the tax sale. Any taxes encumbering the property must be paid at the time the deed is prepared.

• I bought a property. Can a former owner regain ownership?

  Yes, a former owner can exercise its right of redemption to buy back a property that has been sold. This right may also be exercised by the former owner’s legal representatives or by a third party acting on behalf of the former owner. The buyer cannot contest this right.

  The former owner has one year to exercise his or her redemption right. This deadline runs from the date of the property tax sale.

  To exercise his or her redemption right, the former owner must pay the buyer the amount the latter paid plus 10% interest, at any time during the year that the redemption right is exercised. Since the redemption deed is produced in the form of a notarial act at the owner’s expense, you should first consult a notary about this procedure.

(Date of updating: May 1^st, 2018)

For more information, please:

1. Call your borough office;
2. Call the 311 (island of Montréal) or 514 872-0311 (outside Montréal);
3. Send us an e-mail.

The details contained here are for information only and have no legal value. The acts and by-laws posted on this site are for administrative purposes only, and although efforts are made to update them, they may not be the latest versions. Please check the sources before using th