Tax Sale

The following notes are intended to provide a general outline of the Tax Sale process.

For complete information, prospective purchasers should consult both:

The Local Government Act requires the City of West Kelowna to sell at Tax Sale those properties for which taxes are outstanding for 3 years.  For example: In 2014, the 2012 property taxes have been outstanding for 3 years and are considered delinquent.

The Local Government Act gives the City of West Kelowna's Tax Collector authority to sell a property for the Upset Price which equals all outstanding taxes + penalties + interest + 5% tax sale costs + applicable Land Title Office fees which are available online.

Advertising the Tax Sale

The Local Government Act requires municipalities to advertise in at least two issues of a local paper and the last newspaper publication must be at least 3 days, and not more than 10 days, prior to the Tax Sale.  The legal descriptions and street addresses must be published.

To prevent having a property listed in this newspaper ad, the delinquent taxes must be paid prior to the Tax Sale list being published in the local papers which is approximately 2 weeks before the tax sale date.

How the Sale is Conducted

Each year, a public auction will be held at 10 a.m., on the last Monday in September at:

Council Chambers
Municipal Hall,
2760 Cameron Road
West Kelowna, BC  V1Z 2T6

The minimum bid is the amount of the Upset Price.  If no bids are received at or above the Upset Price, the City of West Kelowna is declared the purchaser.

Prospective bidders are advised to exercise due diligence in their decision to bid on any properties since all property sales are on an "as is" basis without warrant or guarantee by the City of West Kelowna.

Property Purchases

Full payment, in certified form, must be remitted within 1 hour of the close of the Tax Sale. If payment is not made by that time, the collector will reconvene the Tax Sale and offer for sale any remaining properties.

Notification to Charge Holders

The collector is required, within 90 days of the date of Tax Sale, to notify all registered owners and charge holders of the sale and the requirements for redemption.
Redemption

The registered owner at the time of Tax Sale or the holder of any registered charge may redeem the property within one year of the date of sale.  To do so, certified payment of the full upset price plus interest on the purchase price at a rate set by the Province of British Columbia must be made to the Collector.

The effect of redemption is to render the title to its state prior to the Tax Sale.  Upon redemption the collector will refund to the purchaser the purchase price plus interest to the date of redemption.

Rights During the Redemption Period

Section 421 of the Local Government Act provides that when real property is sold at Tax Sale all rights held by the owner at the time of the sale immediately cease to exist except for the right of redemption, the right to bring an action to set aside the Tax Sale, and the right to possession.

The registered owner's right of possession is subject to the purchaser's right to bring action against the original property owner for waste (i.e. damage or destruction to the premises) and the right of the purchaser to enter onto the property to maintain it in the proper condition and to prevent waste.

Property Not Redeemed

If the property is not redeemed, the collector will register the new owner at the Land Titles Office in Kamloops, thus cancelling all previous registered charges, except for those matters set out in Section 276(1)(c) to (g) of The Land Title Act and any lien of the Crown or an improvement district. The new owners are required to pay any Property Transfer Tax applicable.