What is the cancellation price in a municipal tax sale and how does it set the minimum bid?

The cancellation price is the amount the municipality has determined it would need to receive to cancel the tax arrears certificate registered against the property - broadly, the unpaid taxes, along with accumulated penalties, interest, and the municipality's reasonable costs connected to the process. It functions as the floor for the tax sale: under the tender process, no bid can be accepted unless it meets or exceeds this figure, so it effectively sets the minimum tender rather than being something bidders calculate on their own.

The municipality states the cancellation price directly in the tender package for the property, so prospective bidders do not need to reconstruct it from tax records themselves - though independently confirming the property's tax and title history is still worthwhile due diligence. Because this figure reflects the municipality's claim rather than the property's market value, it is common for winning bids to end up well above the cancellation price for a desirable property, and well at or near it for a less desirable one.

Get the current cancellation price directly from the municipal tax office or the tender package rather than estimating it yourself.