In an unprecedented turn of events, a British Columbia township issued an apology for auctioning off a man’s property without his knowledge. The township faced severe criticism from a B.C. judge, who deemed that significant repercussions were warranted for their actions.
Anthony Brent Morgan found himself in a predicament when the Township of Spallumcheen sold his land at a tax auction without notifying him. Morgan, who owed approximately $6,700 in property taxes for his land near Armstrong, was unaware of the sale or the opportunity to prevent it. The property, originally purchased for $160,000 seven years prior, was sold for a meager $11,300.
Upon discovering the sale, Morgan’s attempts to redeem his property proved futile due to the lack of prior notification. The township admitted to failing in its obligation to inform Morgan under the Local Government Act and suggested compensating him based on the property’s 2018 market value. However, Justice Gary Weatherill deemed this inadequate.
In his recent judgment, Weatherill ruled that Morgan was entitled to damages equivalent to the land’s current value minus the outstanding taxes, totaling $352,316. This sum exceeded the township’s proposal by 54% and more than doubled Morgan’s original purchase price. Weatherill emphasized the importance of local governments adhering to legislation, particularly in notifying property owners of impending auctions and allowing sufficient time for redemption.
Morgan’s property on Round Lake Road was his sole real estate asset, intended for his family home and carpentry business. Following the sale, Morgan, now residing in rental accommodation in Vernon, faced financial setbacks as his business struggled and property taxes accumulated. Despite the legislative grace period, Morgan missed the opportunity to reclaim his land due to delayed awareness of the sale.
The judge emphasized that the property held significant value for Morgan, who had no means to acquire a replacement, missing out on the area’s property value appreciation since 2018. Weatherill also ruled in favor of awarding Morgan his costs in addition to the damages.
This incident sheds light on a recurring issue of local governments mishandling tax auctions, as demonstrated by a previous case where a vulnerable senior in Penticton lost her home due to unpaid taxes. The provincial ombudsperson’s review highlighted the lack of clear communication and assistance for homeowners facing such predicaments, urging municipalities to exercise diligence and empathy in such matters.