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Town of Lewisporte
Arrears Sale By-Law
Pursuant to the authority conferred in section 7 of the Towns and Local Service
Districts Act, 2025, the Town Council of Lewisporte adopted the following regulations
on
1. TITLE
1.1. This document will be known and cited as Arrears Sale By-Law.
2. INTERPRETATION/DEFINITION
2.1. "Council" shall mean the Town Council of Lewisporte.
2.2. "Director" shall mean any individual who is considered a department head and is
responsible for managing and directing the work of the employees within that
department.
2.3. "Employee" or "Employees" shall mean any individual under an employment
contract with the Town of Lewisporte including all members of staff, volunteers,
contractors and members of Council.
2.4. "Employer" shall mean the Town of Lewisporte as represented by
the town manager or his/her designate.
2.5. "Supervisor/Manager" shall mean any individual who is responsible for managing
and directing the work of an employee or group of employees.
2.6. "Town" shall mean the Town of Lewisporte.
3. APPLICATION
This by-law applies to the sale of any real property for which a notice of arrears has
confirmed to be served in accordance with the Towns and Local Service Districts Act of
Newfoundland and Labrador.
4. PROCEDURE
4.1. Resolution
The Town Council shall, by resolution, direct that real property be sold by arrears sale
upon confirmation by the town clerk that a notice of arrears for the real property was
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served in accordance with Division 8 Leins and Arrears, Section 146 Notice of Arrears of
the Towns and Local Service Districts Act of Newfoundland and Labrador.
4.2. Notice of Arrears Sale
4.2.1
The town clerk shall immediately upon receipt of a copy of the resolution
referred to in 4.1 serve an owner, mortgagee, judgment creditor, lienholder
or other person having a charge or encumbrance upon or against the real
property with written notice of the arrears sale.
4.2.2
A person who receives a notice under 4.2.1 may, within fourteen (14) days of
service of the notice, file an appeal with the Town.
4.2.3
Where an appeal has not been filed under 4.2.2, the town clerk may
advertise the real property referred to in the resolution for sale by public
auction at a time and place that shall be stated in the advertisement.
4.2.4
Where an appeal has been filed under 4.2.2, the town clerk shall not
advertise the real property referred to in the resolution for sale by public
auction until a decision has been made with respect to the appeal.
4.2.5
An advertisement under this section shall be published in accordance with
Section 292 of the Towns and Local Service Districts Act of Newfoundland
and Labrador at least 30 days immediately before the date of the arrears
sale.
4.2.6
It is sufficient in the notice and the advertisement to put the street and
number of the real property, or to put another short reference by which the
real property may be identified, together with a statement that a full
description may be seen at the town clerk's office.
4.3. Arrears Sale by Public Auction
4.3.1
At the time and place referred to in the advertisement of an arrears sale the
town clerk shall proceed to sell at the public auction the real property or
portions of the real property that the town clerk determines are sufficient to
pay the taxes, water and sewer fees, local improvement fees, interest and
expenses, unless the arrears of taxes, water and sewer fees, local
improvement fees and interest and the expenses incidental to those
proceedings and the arrears sale are then, or have been previously, paid.
4.3.2
Where the real property referred to in the advertisement of the arrears sale
is only a portion of real property for which taxes, water and sewer fees or
local improvement fees are owed and the portion does not sell for a
sufficient amount to satisfy the taxes, water and sewer fees and local
improvement fees, interest and expenses due with respect to the real
property of which it forms a part, the town clerk may immediately, and
without further notice, sell the whole or a portion of the remainder of the
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real property to satisfy the taxes, water and sewer fees and local
improvement fees, interest and expenses.
4.3.3
The Town, by a town employee or agent, may bid for and purchase real
property being sold to satisfy taxes, water and sewer fees, local
improvement fees, interest and other expenses due.
4.4. Further Notice of Arrears Sale
Where, at the time set for an arrears sale, there are no bidders or the town clerk fails
to sell the real property for the full amount of the arrears of taxes, water and sewer
fees, local improvement fees, interest and expenses due, the town clerk shall
a) adjourn the arrears sale until a date set by the town clerk that is not earlier
than one week and not later than two (2) weeks after the date on which the
original arrears sale was scheduled;
b) serve notice of the date of the arrears sale set under 4.4.1 on a person
entitled to notice under 4.2.1;
c) publish a notice in accordance with section 292 that states that the arrears
sale was adjourned and the time and place to which the arrears sale is
adjourned; and
d) attempt to sell the real property at public auction.
The town clerk may sell the real property at the public auction for an amount that
can be realized.
4.5. Arrears Sale Set Aside
Where an arrears sale is set aside for an error, irregularity or other cause, the lien
on the real property shall not, as a result of the error, irregularity or other cause be
discharged but shall continue for the same time as if the date of the setting aside
was the date on which the arrears sale took place and the real property may again
be sold unless the taxes, water and sewer fees, local improvement fees, interest
and expenses against it are paid.
4.6. Proceeds of Arrears Sale
4.6.1 The town clerk shall, from money received at an arrears sale, deduct the
amount of taxes, water and sewer fees, local improvement fees, interest
and expenses owing to the town, at the time of the arrears sale.
4.6.2
Where there is a balance remaining after making the deductions under
4.6.1, the town shall
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a) where the balance is less than $200, pay the balance to the former
property owner; or
b) where the balance is $200 or more, pay the balance to the former
property owner unless an application is made to the Supreme Court
within 90 days of the auction by a person claiming entitlement to the
balance and if an application is made, pay the balance to the Supreme
Court.
4.6.3 Where 4.6.2 (b) applies, the town shall immediately serve written notice on
a person entitled to notice under 4.2.1, setting out the amount of the
balance and the requirement to apply to the Supreme Court within ninety
(90) days of the auction to claim entitlement to the balance or a portion of
the balance.
4.6.4 Where the former owner of the real property is unknown or cannot be
located and there is a balance remaining after making the deductions
under 4.6.1, the town shall pay the balance to the Supreme Court.
4.6.5 Payment of the balance to the Supreme Court under 4.6.2 or 4.6.4 shall
have the same effect as payment to the owner, and a judge of the Supreme
Court, on the application of an interested person, may order the payment
out of Supreme Court of the balance or a portion of the balance to the
person entitled to it.
4.7. Failure to Pay
Where the purchaser of real property at an arrears sale fails to immediately,
a) Pay the town clerk or the town's agent the amount of the purchase price of
the real property; or
b) Deposit with the town clerk an amount equal to the amount of the taxes,
water and sewer fees, local improvement fees, interest and expenses of the
arrears sale for which the real property has been sold,
the town clerk shall immediately re-offer the real property for sale at the public
auction.
4.8. Future Assessments
4.8.1 Where the real property has been sold by arrears sale, the real property
shall be assessed to the purchaser of the purchaser's executors,
administrators or assigns.
4.8.2 Where the town is the purchaser, the real property shall be assessed to the
Town.
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4.9. Vesting of Real Property Following an Arrears Sale
4.9.1
Where real property has been sold by arrears sale, the town council shall
give to the purchaser a valid conveyance in the name of the town signed by
the mayor and the town clerk or a person appointed by the town council and
sealed by the Town.
4.9.2
The conveyance referred to in 4.9.1 shall
a) be conclusive evidence that the provisions of this Act with reference to
the arrears sale of the real property described in that conveyance have
been fully complied with, and everything necessary for the legal
perfection of that sale has been performed; and
b) have the effect of vesting the real property in the purchaser, the
purchaser's executors, administrators or assigns absolutely free from
encumbrances except a claim of the Crown and an easement.
4.10 Review
The Town shall, every 2 years, conduct a review of this By-Law and consider the areas
which may be improved.
5. REPEAL OF PREVIOUS BY-LAWS AND AMENDMENTS
5.1. None
6. CAME INTO EFFECT
These Regulations first came into effect on
through a
resolution of Council, #
Krista Freake, Mayor
Coreen Colbourne, Town Clerk