Frequently Asked Questions
Does a municipality have to offer an Extension Agreement?
At what point does a municipality become entitled to register a tax arrears certificate?
Can a municipality accept a partial payment after a tax arrears certificate has been registered?
Are payments of tax arrears made to Realtax?
Can Realtax Inc.’s fee be added to a property’s realty tax account if a tax arrears certificate has not yet been registered?
I’ve never done a tax registration or tax sale before. Where do I start?
What’s the difference between a tax registration & a tax sale?
Does a municipality have to offer an Extension Agreement?
Municipalities are not required to enter into Extension Agreements.
A municipality is always permitted to simply insist on payment
in full after a tax arrears certificate has been registered.
At what point does a municipality become entitled to register a tax arrears certificate?
Under subsection 373(1) of the Municipal Act, 2001 a tax arrears certificate may be registered:
"...on January 1 in the third year following that in which the real property taxes become owing..."
In plain English, where taxes became owing in 2008, a tax arrears certificate can be registered on or after January 1, 2011 (2009 was the first year in arrears, 2010 was the second year). This applies to both improved and vacant land.
Can a municipality accept a partial payment after a tax arrears certificate has been registered?
Municipalities cannot accept a partial payment unless an Extension Agreement is entered into and passed as a bylaw.
Subsection 347(3) of the Municipal Act, 2001, states:
"No part payment shall be accepted on account of taxes in respect of which a tax arrears certificate is registered under this Act except under an extension agreement entered into under section 378."
Please note that an Extension Agreement may only be entered into within one year of the date that a tax arrears certificate was registered (subsection 378(1)).
Are payments of tax arrears made to Realtax?
No. Payments must always be made directly to your municipality. Realtax will not accept any tax payments.
Can Realtax Inc.’s fee be added to a property’s realty tax account if a tax arrears certificate has not yet been registered?
Yes, it can be, providing that you are entitled to register a tax arrears certificate. Subsection 371(1) of the Municipal Act, 2001 allows you to charge back:
"...all reasonable costs incurred by the municipality after the treasurer becomes entitled to register a tax arrears certificate under section 373 in proceeding under this Part or in contemplation of proceeding under this Part..."
I’ve never done a tax registration or tax sale before. Where do I start?
Please contact us. One of our managers will be delighted to explain the procedures to you. You’ll be talking to someone who has handled thousands of tax registrations and hundreds of tax sales. It will be our pleasure to contact you every step of the way and explain the process to you.
What’s the difference between a tax registration & a tax sale?
Tax Registration is the set of procedures that must be conducted before a property can be advertised for tax sale. These procedures include: registering a tax arrears certificate, notifying everyone who has an interest in the property, etc.
These procedures continue until:
- The taxes are paid in full,
- An extension agreement is issued and fulfilled, or
- The taxes have not been paid and one year has passed since the a tax arrears certificate was registered.
Tax Sale is the set of procedures that must be conducted if the taxes remain unpaid one year after a tax arrears certificate was registered.
