Can I Sell My House in Ontario If I Owe Money on a Lien or Unpaid Property Taxes?

Whether you can sell depends on what is registered against your home and how much is owing. Unpaid property taxes are a special lien on the land that ranks ahead of every other claim except the Crown's. If arrears are still owing on January 1 in the second year after they became owing, the treasurer may register a tax arrears certificate on title.

The CRA can certify an unpaid tax debt, and a registered memorial of it creates a charge ranking behind interests perfected before it was recorded. A writ of execution binds the debtor's lands from its effective date noted in the sheriff's index. A contractor's lien is preserved by registering a claim on title, then expires unless perfected within 90 days. Anyone can search property records on OnLand for a fee.

Before the one-year period under the Municipal Act, 2001 ends, a tax arrears certificate can be cancelled by paying the cancellation price, which covers arrears, current taxes, interest, penalties and reasonable municipal costs. For a construction lien, a court must make an order vacating it when money or security is paid into court. Because each claim works differently, a lawyer can confirm what must be paid and how at closing.