Partial Payment on Tax Sale Redemption

We had one property go to tax sale this year and the Municipality was declared the purchaser. The property owner wants to redeem the property but has sent me a cheque that will cover about 80% of the redemption total. My question is how should this partial payment be applied, (ie.) to all the interest to the current date and then to the upset amount? How do I continue to calculate the interest on the outstanding amount, on the full upset amount or only on what is left outstanding?

Comments

  • We wouldn't accept partial payment. Interest would continue to accrue on the whole amount outstanding. If someone else had purchased this property at tax sale, we would not refund their purchase price partially and they would continue to earn interest on the amount they paid. What if the remaining amount was never received? You can hold the amount as a deposit but the interest would continue to accrue on the tax sale purchase price.

  • Same as Tanya, we would not accept a partial payment.

  • We would not accept a partial payment either. Payment must be made in full to redeem the property.

Sign In or Register to comment.