PICKERING, Ontario – For tax sales that occur outside the GTA, visible minorities make up a small fraction of bidders. And even though many people of varying ethnicities view real estate as a good investment, prospective investors are still oblivious to the fact that all types of properties can be bought for a fraction of their real value, when sold at tax sales.
Furthermore, people might be surprised to learn that every month, at different places throughout Canada, there are tax sales occurring.
In the book, How To Buy Tax Sale Properties: A Canadian Guide, Jamaica-born author, Beverly Browne, has pulled together an abundance of facts on the tax sale sector.
The book is endorsed by The Urban Financial Services Coalition (UFSC) – Toronto Chapter. UFSC is a community-based not-for-profit organization comprised primarily of visible minority professionals in financial services. Committed to the message of financial literacy, the organization endorses the message of the book, which is simply to inform people of the steps involved in acquiring real estate through the non-traditional way of tax deed sales.
Such sales allow an individual or company to bid for a particular property whose owner has fallen well behind on the taxes. The sales occur through auctions, where you can attend live sessions and bid against other people. More frequently, however, they occur through a tender process, where interested parties submit a bid and wait to learn who gets the winning bid. At the tender process, it’s not necessary to be present on the sale date.
“Tax sales are legitimate investments that have been available for many years,” Ms. Browne says. “People first have to settle in their own minds the moral principles associated with profiting from someone else’s loss. Then they come to realize that once the property goes to a tax sale, someone other than the most recent owner is going to own the property after the sale is over.
“Having a winning bid at a sale is a non-traditional way to acquire real estate.”
Even people without ethical concerns can be sceptical that real estate can actually be purchased in this manner. But while they remain disbelieving, the minority of people ‘in the know’ about such sales push ahead to keep abreast of what properties are available.
Until now, comprehensive information on Canadian tax deed sales has been scattered. This relatively short, easy-to-read book compiles details that show a novice investor the necessary steps for being successful in the tender process.
Because Canadians have an affinity with Florida as a winter getaway, the book also includes a chapter that gives details on Miami properties.
In the book, readers will learn the process involved from research to bidding, the risks as well as the possible rewards, and how to know when and where tax sales are taking place. Although it gives information on Canada as a whole, detailed examples of past sales that occurred in Ontario are highlighted, along with winning bid prices.
People who have read the book are pleasantly surprised by the examples of what actual properties sold for, in relation to the taxes owed. They like, too, that it shows examples of forms given out by the municipalities. There is also a list of extra resources where readers can find municipalities they might have a specific interest in, for future sales.
Readers of the book are advised to do their due diligence, so that if their bid is successful, they end up with a property they’re really happy with.
Andrea P. Kelly, of Andrea Kelly Law in Markham, adds these words of caution.
“Before placing your bid, it is essential to have a lawyer perform and review a title search on your proposed property. This will highlight any deficiencies, which could disastrously erode any value you would have achieved by your investment. “
She adds, “Unfulfilled work orders, environmental or sanitation issues and outstanding mortgages, for example, can make your acquisition a nightmare. Also, since the municipality is not obligated to provide vacant possession to the successful bidder, you should consult with a lawyer as to legal means and the relevant timeframe to remove someone if they refuse to leave voluntarily.”
Starting in September, information sessions are planned to take place at different locations across the GTA. The first two are hosted by Avanti Financial Services and planned for Durham Region; on Sept. 25, at the Ajax Public Library, and on Sept. 26 at the Whitby Library. At both locations, space is limited, therefore people are encouraged to pre-register.
How To Buy Tax Sales is available online and in hard copy versions. The first chapter of the book can be read for free at www.accessprofits101.com/newsite1/.
The online PDF version of the entire book can be accessed at www.tripleclicks.com/detail.php?item=240245p. The e-book’s current promo price is $6.68 Cdn.
For information on how to get a hard copy, priced at $18.95, please call 905 686-9153, or email firstname.lastname@example.org.