Registration of a Lien on Title
If property taxes are three calendar years in arrears, the City can register a lien or Tax Arrears Certificate on title as per the Ontario Municipal Act, 2001.
Before registering a Lien on Title the City will:
- Indicate the amount in arrears on the tax bill
- Send reminder notices in March, May, July and October with the outstanding balance
- Send a final letter indicating the property is at risk of having a lien registered in February
The following people will be notified by Registered Mail when a lien is registered on a property:
- Tax payer
- Mortgage holder
- Anyone with a registered court judgement against the tax payer
The taxpayer has one year from the date the lien was registered to make a payment plan to pay the outstanding taxes.
If your property is in tax arrears, you have the following payment options:
- Payment in full of the outstanding balance
- Payment of a sufficient amount to allow for the lien to be cancelled
- Filing an extension agreement which allows payment over a two year period
If you do not arrange a payment plan with the City, the City can put your property up for sale after one year from the lien registration date.
The mortgage may go into default as most mortgages require property taxes to be current. Taxpayers may be contacted by the mortgage holder as to the next steps for the mortgage company which may include foreclosure.
Sale of Lands for Tax Arrears
After the one year redemption process:
- A final letter is sent to the tax payer advising:
- that the property will be on the next tax sale
- when the property will be advertised
- The City notifies all mortgage holders of the pending tax sale.
- After the property sale, anyone registered on title except for provincial or federal liens loses their interest in the property.
- Date modified: