Tax sale information

Tax Sale Process

The following notes are intended to provide a general outline of the tax sale process. For more information about the annual sale of properties, prospective purchasers should consult the Local Government Act, in particular (but not limited to) Sections 645 to 672.

  • The City is required by the Local Government Act to sell at Tax Sale all properties whose taxes have not been paid for 3 years.
  • The Local Government Act gives the Collector authority to sell a property for the Upset Price which equals all outstanding taxes + penalties + interest + 5% tax sale costs + Land Title Office fees.
  • All property sales are "as is" without warrant or guarantee by the City of Kelowna.

Local Government Act

Advertising
  • The Local Government Act requires municipalities to advertise in a local paper not less than 3, or more than 10 days prior to the Tax Sale.
  • The legal description and street address must be published.
  • To avoid your property being listed in this ad in the newspaper, your delinquent taxes must be paid approximately 2 weeks prior to the Tax Sale date.
Tax Sale
  • A public auction will be held at 10am, on the last Monday in September each year in Council Chambers, City Hall.
  • Bidding is accepted on all properties.
  • Prospective bidders are advised that it is their responsibility to search the title of the property in advance to determine if there are any charges registered against the property.
  • The minimum bid is the amount of the Upset Price.
  • If no bidding takes place within 3 calls by the Collector (auctioneer), the City is declared the purchaser at the Upset Price.
Purchasing a Property
  • The successful bidder is required to have their social insurance number or business number, as well as their corporate seal if required.
  • Payment is to be in the form of cash or certified cheque for at least the upset price amount at the close of the Tax Sale.
  • The balance owing must be received by 12:00 pm on the day of the Tax Sale.
  • If full payment is not received by 12:00 pm on the day of the Tax Sale, the Collector again offers the property for sale.
Notifying Charge Holders

The Collector is required by law to search all property titles and within 90 days after Tax Sale notify all registered charge holders shown on each property.

Redemption
  • The original owner has one year after the property is sold at Tax Sale to pay the taxes and buy back their property. This is called redemption.
  • All registered charge holders have full right to redeem the property.
  • To redeem the property, the charge holder must remit the full upset price, plus interest on the purchase price at a rate set by the Province, within one year of the Tax Sale.
  • If the property has been sold at Tax Sale and the City has been declared the purchaser, 50% of the upset price, plus interest may be paid as an instalment thus extending the redemption period by 11 months and 21 days. This applies only to property having improvements.
  • As soon as the property is redeemed, the Collector will refund to the Tax Sale purchaser the purchase price, plus interest to the date of redemption.
Rights During Redemption Period

For information regarding rights during redemption period, please see the Local Government Act  - Section 665

Property Not Redeemed
  • If the property is not redeemed during the one year period, the Collector registers the new owner at the Land Titles Office in Victoria, thus cancelling all previous registered charges, except for those matters set out in Section 276(1) (c) to (g) of the  Land Title Act  and any lien of the Crown, an improvement district or a local district.
  • The new owners are required to pay the property sales tax to the Provincial Sales Tax Administrator after application has been made to register in the Land Titles Office.