How do I handle liens or unpaid taxes on a
property?
Stop — Don’t sell your Georgetown home until you handle liens or unpaid taxes.
Why this matters now
If you’re selling a house in Georgetown, ON, unpaid taxes or liens can stop the sale cold. Buyers’ lawyers demand clear title. Lenders won’t fund. Municipalities can force tax sales. One missed check and your closing date becomes a legal problem and a financial hit.
I’ll show you exactly how to find liens and unpaid taxes, the step-by-step fixes that work in Georgetown and Halton Hills, and options when you don’t have cash on hand. Read this, act fast, and close clean.
What is a lien or unpaid tax on a property?
- Lien: a legal claim placed on a property to secure a debt. Common types in Ontario: mortgages, judgments, construction liens, and Canada Revenue Agency (CRA) liens.
- Unpaid municipal taxes: property tax arrears owed to the Town of Halton Hills. The municipality can register tax arrears and eventually force a tax sale if left unresolved.
Both appear on title searches and can block a sale.
Quick checklist — find out fast
- Order a current title search (Land Title or Land Registry) through your lawyer or your real estate agent. This shows registered mortgages, liens, and charges.
- Contact the Town of Halton Hills tax office to check the property tax account and outstanding charges. Use your roll number or address.
- Ask your lawyer to search for judgments, Canada Revenue Agency registrations, and construction lien registrations.
- Pull a municipal utility and local improvement charge report (sometimes missed on title searches).
Do these first. Don’t guess.
How liens and tax arrears are typically discovered in Georgetown sales
When a buyer makes an offer, their lawyer orders a title search and requisitions. If there’s a lien, your lawyer will receive a requisition asking for proof the lien is cleared. That stops closing until answered. Time equals cost: buyers delay, may renegotiate, or cancel.
Pro tip: handle title problems before listing. It makes your home more marketable and avoids last-minute price cuts.
Step-by-step: How to handle liens and unpaid taxes in Georgetown
1) Get the facts fast
- Title search: shows registered items. Your lawyer will get this. If you don’t have a lawyer, get one now.
- Tax certificate: request from the Town of Halton Hills. It lists unpaid municipal taxes and penalties.
2) Identify the type of claim
- Mortgage: usually paid off at closing with proceeds. Your lawyer orders a mortgage statement and discharge.
- Construction lien (Builders’ Lien Act): often requires a holdback or discharge through payment or lien removal. These can be complex and time-sensitive.
- Judgment or execution: creditors may have registered a writ or certificate. Payoff or negotiate release.
- CRA registration: federal tax liens require negotiation with CRA or payment arrangements.
- Local improvement charges or utilities: municipality can put these on title or collect at closing.
3) Decide how to clear it
- Pay from sale proceeds: most common. Your lawyer will obtain payoff figures and pay creditors at closing.
- Negotiate a discharge or release: call the creditor, agree on a pay-off amount or settlement, get a written release to provide at closing.
- Holdback or escrow: if a lien is disputed, buyer and seller can agree to hold funds in trust until the issue resolves. Your lawyer structures the holdback.
- Title insurance: sometimes a buyer will accept title insurance to cover unknown historical matters. It’s a risk; many lenders still require clear title.
4) Documentation and discharge
- Always get formal discharge or release documents from the creditor and register them on title.
- For mortgages: get a mortgage discharge statement and a registered discharge on title from the lender.
- For construction liens: obtain a release or a court order removing the lien. Your lawyer will confirm registration status.
5) When taxes are the problem
- Municipal tax arrears: contact the Town of Halton Hills tax office for the exact balance and penalties.
- Repayment options: pay off from sale proceeds, arrange payment with the municipality (rare in a sale—municipalities expect payment), or use sale proceeds to clear at closing.
- Tax sale risk: if taxes are in arrears for multiple years, the municipality may have started the tax sale process. That complicates everything. Act immediately.
What if you can’t pay the lien or tax now?
- Negotiate: many creditors prefer partial payment now over long collections. Ask for a written settlement and release.
- Short sale or assignment: in rare cases, sell the property as-is to a buyer who will accept the lien, or assign the contract to an investor. Expect a lower net price.
- Escrow or holdback: agree with buyer to hold funds. This protects the buyer and lets the sale proceed.
- Bankruptcy or insolvency: extreme. Only after legal advice. It affects sale options and timelines.
Timeline and costs to clear common liens in Georgetown
- Mortgage discharge: 1–5 business days after payoff instructions; lender fee applies.
- Judgment payoff: depends on negotiation; expect 1–2 weeks for paperwork.
- Construction lien: can take weeks to months if disputed. Immediate settlement speeds closure.
- Municipal tax clearance: usually can be arranged within days if proceeds available; tax sale proceedings take months to years but escalate risk.
Legal and disbursement fees will apply. Factor them into your net proceeds.
Local specifics: Georgetown & Halton Hills you must know
- Town of Halton Hills tax office: they provide tax certificates and exact arrears. Contact early.
- Halton Land Registry Office / Teranet: title searches and registration matters happen here. Your lawyer will handle registration details.
- Local real estate market: buyers in Georgetown expect clean title. Agents and buyers often reject conditional sales that involve unresolved liens.
Local knowledge speeds resolution. A local realtor and lawyer who know Halton Hills processes will save time and money.
Why hire a local real estate lawyer and realtor now
- Lawyers clear title, order payoffs, register discharges and handle holdbacks and escrow.
- Local realtors know which buyers will accept conditional sales and which will walk.
- Both ensure you don’t accidentally accept an offer that can’t close.
This is not paperwork you handle on a weekend. Mistakes cost more than legal fees.
Real examples (anonymized)
- Example 1: A seller had two years of unpaid municipal taxes. The lawyer got the exact tax certificate, the seller used sale proceeds to clear the balance, and closing was completed with a clean title.
- Example 2: A construction lien from an unpaid contractor appeared during title search. The seller negotiated partial payment with the contractor and the buyer agreed to a small trust holdback until a discharge was registered.
These outcomes were fast because the seller acted before the buyer walked.
Practical checklist before you list your Georgetown home
- Order a recent title search.
- Request a tax certificate from the Town of Halton Hills.
- Ask your realtor to flag any local improvement charges.
- Retain a trusted local real estate lawyer now — not at offer time.
- If you find a lien: get payoff figures, negotiate, and secure written releases.
Do this and you’ll list with confidence.
Call to action — local help that gets results
If you’re selling in Georgetown and want the sale to close clean, get expert help now. Tony Sousa is a local realtor who handles legal and documentation issues for Georgetown sellers every week. He will connect you with experienced Halton Hills real estate lawyers, order title checks, and keep buyers from walking at the last minute.
Contact Tony: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Quick answers for Georgetown sellers
How do I check if there’s a lien on my property?
Order a title search through a real estate lawyer or your agent. Ask the Town of Halton Hills for a tax certificate to confirm unpaid taxes.
Can unpaid municipal taxes stop a sale in Georgetown?
Yes. Municipal tax arrears appear on title and must be cleared or resolved before closing. Municipalities can also start tax sale proceedings if taxes remain unpaid.
Will title insurance solve a lien problem?
Title insurance can protect against some unknown issues, but it doesn’t replace clearing a registered lien or tax arrears. Lenders usually require clear title.
What if a buyer agrees to buy the property with a lien?
That’s possible with a negotiated holdback or indemnity insurance, but it lowers buyer pool and often reduces sale price. Most buyers expect clear title.
How long does it take to remove a lien?
Simple mortgage discharges: days. Judgment payoffs or municipal tax clearances: days to weeks. Construction lien disputes: weeks to months if contested.
Who pays outstanding liens at closing?
Typically, liens and mortgages are paid from the seller’s proceeds at closing. Your lawyer will handle payoffs and discharges.
Does the Town of Halton Hills provide payoff statements?
Yes — contact the tax office for an up-to-date tax certificate showing arrears, penalties and interest.
Can I sell if the CRA has registered a tax lien?
Yes, but you must clear or negotiate with CRA. The lawyer will obtain the necessary release or deal with the lien at closing. CRA can be firm; get legal help.
What if I inherit a property with unpaid taxes or liens?
You inherit those claims. Order a title search and tax certificate immediately. Consult a lawyer for options.
Final word
Don’t let a lien or unpaid tax turn your sale into a legal fight. Order a title search, get the tax certificate from Halton Hills, and work with experienced local professionals. That simple sequence protects your closing date and your net proceeds.
If you want hands-on help in Georgetown, contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Act now. A clean title sells faster and nets more.
