In a market where real estate prices are soaring, two buyers walked away with smoking property deals from the municipality’s annual tax sale Sept. 27.
A downtown building with a storefront sold for $105,000 following a bidding war, and a large property on Similkameen Avenue with at least one building went for the upset price of $31,214.
According to the Local Government Act, the original owners of the properties have one year to pay all outstanding taxes, penalties and fees on the properties in order to reclaim them.
Finance director James Graham said six people attended the auction, held in council chambers, along with himself and CAO Lyle Thomas.
Thomas had authority to bid up to 50 per cent of the assessed value of either property, on behalf of the municipality, but did not place a bid in either case.
“Generally the municipality does not bid if it doesn’t believe it would be beneficial,” said Graham.
The minimum successful bid in a tax auction, also called the upset price, is a total of all the monies owed to the municipality in delinquent taxes, plus five per cent and the land title registration.
The downtown building, 244 Bridge St. (next to the Loonie Bin), had an upset price of $7,015.
The upset price for the property at 631 Similkameen Ave. property was $31,214. Purchasers must pay the full amounts for their properties the day of the auction, or the lots will again be put up for sale.
Originally, six properties were advertised for sale by the municipality, and all taxes on the remaining properties were paid before the auction date.
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