A man from BC, whose property was sold by the local government for “pennies for a dollar” without his knowledge, received compensation for more than 350,000 dollars.
The dispute, outlined in a ruling by the British Columbia Supreme Court on Friday, dates back to 2017, when Anthony Brent Morgan owed the city of Spalumchin $ 6,754.02 in property taxes.
The city admitted to selling the property for $ 11,300 without giving “due or any notice” to either Armstrong or the mortgagee in 2017. At the time, according to court documents, it was worth $ 159,000.
The court ruled that Armstrong bought the plot in 2011. He was born and raised in this part of the province, but has spent much of his life living and working in the Vancouver Metro.
“In the fall of 2010, he began making plans to return to the North Okanagan area and set up a finishing carpentry business and roots for his then-family. It was not full of money and began liquidating assets to finance an advance payment for a home in the Vernon area, the court said.
While Armstrong and his family had lived on the property for some time, they left in July 2012 after a police officer told them they needed permission for their trailer and septic system to stay. Armstrong decided to leave.
“He moved his family to Vernon to a rented apartment where he has lived ever since.”
While living in Vernon, the ruling said, he was unable to handle property tax payments.
THE JUDGE SAYS, THE CITY SHOULD DISPOSE OF “SIGNIFICANT CONSEQUENCES”
Although the local government has the legal right to sell someone’s property to recover overdue taxes, Judge GP Weatherill noted that there is a legal requirement to tell the owner and give him a one-year “buyout period” during which they could try to find a way to keep the property.
“Neither the plaintiff nor the mortgagee knew that the property would be sold or sold at the tax sale until the redemption period expired,” the judge wrote.
As the municipality acknowledged that none of these things had been done, the question the judge had to rule on was how much Armstrong owed.
The city claims it must pay the value of the property from 2018, the point at which the one-year purchase period has ended. It was valued at $ 170,000 at the time. Armstrong claims he was entitled to the market value at the time of the trial, valued at $ 360,000.
“The difference between the two positions is approximately $ 190,000,” the judge wrote.
Accepting in favor of Armstrong, the decision cites several factors, including that this is the only property owned by Armstrong.
Non-compliance by local authorities, including failure to notify the owner / holder of the fee, entails and should have, in my view, significant consequences, namely fair compensation (ie compensation) to the owner / the holder for all losses and damages arising from the sale “, the judge wrote.
“If the tax sale had not taken place or he had been notified and bought the property, the plaintiff would have continued to own the property and would have enjoyed the increase in its value over the years. The tax sale deprived him of this. increase, “the judge continued.
Armstrong received $ 352,316.28, an amount equal to the appraised value of the property for 2022 minus taxes due.
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