When the tax act is registered, the mortgages ( except those of the Crown – Federal or Provincial ) are deleted from style by the kingdom register office. So BMO, Royal Bank, CIBC, TD, Scotia Bank, Credit Union, etc., mortgages are deleted .
The reason they are deleted : Anyone with an matter to on title is sent a notice from the Town that the property is in tax arrears. When the bank receives the notice they now have the option of paying the tax arrears. If they pay the taxes – they get a lien on claim for the amount they paid and the Town cancels the tax arrears certificate. This way the bank preserves its matter to on title .
If the bank chooses not to pay the taxes – their interest ( the mortgage ) is deleted from title when the tax act is registered.
If there are Crown interests, they remain, which will make it unmanageable to sell. besides, the Crown can seize the property at any meter and sell it to recover what is owed to them .
here is Section 379 ( 7 ) of the Municipal Act, 2001. It says “ free from all estates and interests ” and banks are not listed as an exception .
Effect of conveyance
( 7 ) A tax act, when registered, vests in the person named in it, an estate in fee simpleton in the land, together with all rights, privileges and appurtenances and release from all estates and interests, except,
( a ) easements and restrictive covenants that run with the country ;
( b ) any estates and interests of the Crown in correctly of Canada or in right of Ontario, other than an estate of the realm or interest in farming that,
( one ) is vested in the Crown in right of Ontario because of an escheat or forfeit as a result of the dissolution of a pot, or
( two ) belongs to the Crown in right of Ontario as a result of the death of an individual who did not have any true heirs ;
( coulomb ) any interest or deed acquired by adverse possession by abutting landowners before the registration of the tax act. 2001, c. 25, s. 379 ( 7 ) ; 2006, c. 32, Sched. A, s. 156 ( 3 ) ; 2015, c. 38, Sched. 7, s. 53 ( 6 ) ; 2017, c. 10, Sched. 1, s. 62 ( 5 ) .
