Surplus property FAQs
Everything you need to know about buying vested municipal land.
These are properties owned directly by an Ontario municipality.
Most properties on this site followed a specific path. First, they started as a Tax Sale on OntarioTaxSales.ca. For various reasons, such as a high minimum tender or a complex title, the tax sale did not receive a successful bid. The municipality then exercised its legal right to “Vest” the property.
Once a property is Vested, the municipality becomes the registered owner. They then declare the land “Surplus to their needs,” and it is moved here to SurplusProperty.ca to be sold to the public.
This is the most important distinction for investors to understand. In a Tax Sale, you are bidding on a “Tax Lien.” You are not buying from the owner, but rather using a legal process to take the property. There are strict rules about 20% deposits and sealed tenders.
With Surplus Properties, you are buying directly from the Municipality. Since they now own the land, the process is often more flexible. There are no sealed envelopes or 20% deposit rules unless the municipality specifically requests them in their own local bylaws
Surplus properties offer several major advantages for Ontario land buyers. First, you are often dealing with a municipal official or a specific “Request for Proposal” process rather than a high-pressure public auction.
Second, because the municipality has already gone through the Vesting process, the legal transition to you is often more straightforward. Finally, many of these properties are overlooked gems. They are parcels that were passed over during a tax sale but hold significant value for abutting landowners, developers, or long-term investors.
Yes, you do need a lawyer. We recommend that you consult with a lawyer before you sign any documents (such as, but not limited to, an Agreement of Purchase and Sale). We also recommend that you have a lawyer assist you with the purchase of a property.
The contact information for the Municipality is listed at the bottom of the listings page. The “For Sale” price is listed above the individual property listing. Simply contact the Municipality and tell them you wish to purchase a surplus property.
Before you buy a property, we recommend that you first consult with a lawyer, and that you have a lawyer assist you with the purchase of the property.