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How does a tax sale work

how does a tax sale work

Is anything added to the amount I bid?

The only addition to the amount you bid will be Land Transfer Tax. This tax is a percentage of the purchase price and varies as the price increases.

Land Transfer Tax Rates

0.5% of the first $55,000

1.0% of the value between $55,000 and $250,000

1.5% of the value between $250,000 and $400,000

2.0% of the value over $400,000

This amount will be added to the amount you bid on the property and must be included in the payment made to the County of Huron at the time of sale.

How do I pay if I am the successful bidder?

Payment must be made by CERTIFIED cheque, bank draft, money order OR cash at the time of the sale. Funds should be payable to: Treasurer, County of Huron. After each property is sold, the auction will take a short break while we ensure the successful bidder has the required payment. If the successful bidder does not have the amount

required in one or a combination of the above forms of payment, the property will be re-auctioned .

How much should I make my certified cheque/bank draft for?

You should get a certified cheque for the maximum amount you are willing to pay for the property you are interested in purchasing. Please remember that the Land Transfer Tax will be added to your successful bid in determining the total payment amount. If your highest bid (plus Land Transfer Tax) is less than the amount you have on your cheque, the County of Huron will issue you a refund cheque for the difference at the conclusion of the auction.

Example – You are willing to pay $10,000 for a property so you come to the auction with a certified cheque in that amount. You have the highest bid for the property and the total amount owing, including land transfer tax, is $8,000. At the conclusion of the auction, the County of Huron will issue a cheque to you for the difference of $2,000.

Category: Taxes

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