Ontario Superior Court Upholds Tax Sale of Residence with Unpaid Property Taxes

• The Ontario Superior Court upheld the sale of a residence with unpaid municipal property taxes in Mako Group Inc. v Riethmueller.
• The court declared the purchaser as the registered owner and permitted it to issue a writ of possession, ordering the occupants to vacate the property.
• The decision highlights the importance of paying municipal property taxes on time, as failure to do so can result in a valid tax sale and transfer of ownership.
• Lawyers advising clients on property transactions should be aware of this precedent and ensure that any outstanding tax liabilities are addressed before proceeding with a purchase.

The court confirmed that a registered tax deed transferred the property to Mako Group Inc., making it the legal owner, and noted that G. Riethmeuller, the previous owner, had failed to challenge the tax sale despite being given notice.

A recent decision by the Ontario Superior Court has upheld the sale of a residence with unpaid municipal property taxes. In Mako Group Inc. v Riethmueller, the court declared the purchaser as the registered owner and permitted it to issue a writ of possession, ordering the occupants to vacate the property. The case involved a property on Ferguson Avenue in Temiskaming Shores, Ontario, which was previously owned by G. Riethmeuller, mother of P. Riethmueller, a respondent in the case.

The city had planned to sell the property for tax arrears under the Ontario Municipal Act, 2001, due to unpaid municipal property taxes. On September 16, 2025, P. Riethmueller moved urgently for an injunction to stop the tax sale based on hardship, but Justice Robin Bellows lifted the temporary injunction just eight days later. The tax sale was completed on January 8, with Mako Group Inc. purchasing the property and registering it as the new owner.

However, the occupants - P. Riethmueller and her husband - refused to vacate the premises, claiming that they should not have to leave due to their vulnerable senior status and long-term occupation of the property.

The Ontario Municipal Act, 2001, provides for the sale of properties with unpaid municipal property taxes. In this case, the city had followed the proper procedures, giving notice to the previous owner and the respondents of their intention to sell the property. The court confirmed that a registered tax deed transferred the property to Mako Group Inc., making it the legal owner.

The court also noted that G. Riethmeuller, the previous owner, had failed to challenge the tax sale despite being given notice. This failure was seen as a key factor in the court's decision, as it demonstrated that the respondents were aware of the city's steps in response to nonpayment of taxes.

The case highlights the importance of paying municipal property taxes on time, as failure to do so can result in a valid tax sale and transfer of ownership.

This decision has significant implications for homeowners who fail to pay their municipal property taxes. The court's ruling emphasizes the importance of addressing outstanding tax liabilities before completing a purchase, as failure to do so can result in a valid tax sale and transfer of ownership.

Lawyers advising clients on property transactions should be aware of this precedent and ensure that any outstanding tax liabilities are addressed before proceeding with a purchase. This decision also underscores the need for homeowners to stay on top of their municipal property taxes, as failure to do so can have serious consequences.

This decision highlights the importance for homeowners to pay their municipal property taxes on time, as failure to do so can result in a valid tax sale and transfer of ownership. Lawyers advising clients on property transactions should be aware of this precedent and ensure that any outstanding tax liabilities are addressed before completing a purchase.

Source: Original reporting via Canadian Legal Newswire