Tax Sale

I just received an interesting question regarding tax sale properties that I'm hoping someone here has some insight on.
If a property that sold at tax sale was damaged during the redemption period, say a flood or fire, and the property owner does not redeem; is the purchaser from the tax sale now the proud owner of an empty lot for the amount they bid at the tax sale? I think the answer is "yes", but wanted to see if anyone had come across this before.

Thanks in advance,
Joni

Comments

  • I believe the purchaser should have put insurance on the property during the redemption period to safeguard their investment. I have been advised to do that in the past on properties the municipality has purchased.

  • Hi Joni
    Under section 665 of LGA, when the property is sold at tax sale, all rights of the previous owner immediately cease to exist, except for right to redeem, right to occupy, and right to apply to have tax sale set aside. Otherwise all the risks, benefits and responsibilities of ownership are transferred to the new owner: therefore wise for purchaser to purchase insurance.

    Susan Meeds, CPA, CGA
    Director of Finance
    Village of Burns Lake

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