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The sale of an immovable property for non-payment of taxes

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Civil and commercial litigation

Recourses for Securing the Payment of Property Taxes

To protect commercial transactions, the Law provides for a number of rights and recourses to various mortgage (or hypothecary) creditors who can invoke them at the appropriate time. Moreover, the Law also grants special rights to municipalities so that they can ensure and secure the payment of property taxes through the sale of the property in question.

Indeed, the Cities and Towns Act as well as the Municipal Code, both grant to cities or regional counties, the right to award or sell a property to secure the payment of any property taxes owed.

In such a case, a certificate of adjudication is issued to the buyer (the adjudicator) and is registered with the Land Registry. From the moment of registration, the official transfer of the property is suspended for a period of one year in order to allow the real owner to redeem the immovable. In a case where such redemption is desired, the price to buy the property back is equal to the price paid by the adjudicator plus 10% and in addition to the specific fees or costs of each city or regional county.

The above steps are of particular importance for those of you who own vacant or unoccupied properties. Indeed, it sometimes happens that such an auction (or adjudication) takes place without the knowledge of the owner. So please be careful and diligent in managing your properties and always make sure to pay your taxes!

Me Harry Karavitis

Alepin Gauthier Avocats Inc.

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