Arrears Owing to the Municipal Authority
Unpaid property taxes are an additional expense you may encounter as part of the overall cost of selling your home. If you have an outstanding property tax bill, your lawyer will be able to find out exactly what the pay out figure will be, taking into account any interest and administrative penalties.
Quite often, the taxing authority will add unpaid and outstanding water and sewer charges onto your tax account so that these charges get reconciled when you sell your property. The same is true for any unpaid and outstanding tax reassessment levies placed on the property or fines assessed against you for refusing to comply with such by-law enforcement orders as cleaning up an unsightly yard.
These are all examples of a charge or “tax” against your property. Your lawyer will pay any of these outstanding amounts to the appropriate authority from the proceeds of your sale.
If you have a disagreement with the municipality over what it claims it is owed, there are a number of appeal measures available to you. To avoid complicating matters, you should complete any administrative avenues of recourse before you begin thinking of selling your home.