Q: A parcel of land has been owned by members of our family for a
number of years. It has been passed from generation to generation and
now it is unclear who actually owns the land. It is being farmed by
another family member though the actual arrangement under which it is
farmed is not clear.
Recently, we have heard that there are tax arrears against the land and
that it might be sold. We would like to ensure that the land remains
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in the family and were thinking that we could buy it at a tax sale.
A: You speak of the desire to have land remain in the family. With the
exception of aboriginal title, the law does not recognize communal
ownership of land. Thus a family doesn’t own land. Specific family
members are recognized as owners. Alternatively, land can be owned by a
corporation or co-operative.
I suggest you check at the local land titles office to see who is the
registered owner of the land. That person would be responsible for
paying the taxes. If after searching the title, you find the person
shown as owner is deceased, what happens?
When a landowner dies, his executor or an administrator, if there is no
will, takes over the owner’s affairs. This person, acting as executor,
takes over responsibilities for the leasing arrangements and for seeing
that taxes are paid.
After probate is granted, the land will be transferred into the
executor’s name in his capacity as executor of the estate and upon
completion of estate matters, the executor is responsible for
transferring the land into the beneficiary’s name or selling it.
What if the appointed executor fails to act or there is no will? In
this case other members of the family could apply to be appointed as
administrators.
Of course, if no one pays the taxes the land can be sold eventually for
taxes.
Before a tax sale occurs, a number of steps must be taken. The
municipal administrator will prepare a list of the arrears.
Once approved by council, the list of arrears will be published in a
local newspaper. If taxes remain unpaid after 60 days, a tax lien can
be filed against the land.
Six months after the lien is filed, the municipality can request title
to the land by formal resolution. Within one year of obtaining title
the municipality must offer it for sale. The sale can be by either
public auction or sealed tender. Three weeks notice of the sale must be
given.
I have summarized the procedure in a general way. There are other
procedural steps that must be taken before the land can be sold.
Full details can be found in the Tax Enforcement Act at
www.gp.gov.sk.ca. There are similar rules in other provinces.
If there is a tax lien, it will be shown on the title. Tax arrears are
matters of public record and can be found at the local tax office.
If land is put up for a tax sale there is no guarantee you would be
successful in obtaining it. The municipality could not favour you and
would be required to sell to the highest bidder.
Don Purich is a former practising lawyer who is now involved in
teaching, publishing and writing about legal issues. His columns are
intended as general advice only. Individuals are encouraged to seek
other opinions and/or personal counsel when dealing with legal matters.
