DioGuardi: Rate your Tax Problem - Lien on Property

DioGuardi: Rate your Tax Problem - Lien on Property - 4.1 out of 5 based on 379 votes

( 379 Votes )

DioGuardi Tax Problem

 

Once the CRA has registered a certificate in the federal court against your tax balance owing, they can move to secure your assets. Your home and/or cottage are assets commonly targeted through the registration of a property lien.

 

The CRA will not necessarily notify you that a lien has been registered on the title of your property. You may not discover it until you try to sell your home, or refinance the home with a new or bigger mortgage.  You will be prevented from closing a sale or refinancing until you make arrangements with the CRA for proceeds from any sale or home refinancing to be directed to the CRA against payment of your debt.

 

When your tax debt is settled, or you negotiate suitable payment terms with the CRA, the lien may be discharged.

 

Common questions:

How do I know if there is a lien registered against my home?

A title search on your property will reveal the existence of a lien.


Does a lien mean the CRA will take my home?

A lien is registered as security against your tax debt. However, after the passage of significant time, if your tax balance remains unpaid, the CRA may register a Writ of Seizure and Sale, which is a very serious enforcement action. If you do not make arrangements for settlement of your tax debt, the CRA then has the legal authority to seize your home and sell it. Any proceeds remaining after your tax balance is settled will be paid to you. But your home will have been liquidated to satisfy your tax debt. Does this happen? Yes.  But not without many months – even years – of prior notice. The CRA prefers you to find other means of sourcing the funds with which to pay your tax balance. By law, there is mandatory notice period the CRA’s intent execute on the Writ of Seizure and Sale before they are in legal position to liquidate the property.

 

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