Quick Answer
Form 7 is the mandatory tender form required for every Ontario municipal tax sale under Ontario Regulation 181/03. It is a sealed-bid submission — not an auction. Key requirements: deposit must be the GREATER of 20% of your bid or the full cancellation price (certified cheque or bank draft only — personal cheques void the bid); bid amount must appear in both numerals and words; the roll number must exactly match the advertisement; the envelope must be sealed and delivered in person before the deadline. One mistake disqualifies your bid with no recourse.
What Is Form 7?
Form 7 — officially titled 'Tender for the Purchase of Land' — is the prescribed statutory form required for every Ontario municipal tax sale under Ontario Regulation 181/03 (Municipal Act, 2001). Ontario uses a sealed tender process rather than a live auction: your bid is submitted in a sealed envelope and opened on the tender opening date.
Always use the municipality's form
Municipalities add their own cover sheets and instructions on top of Form 7. Always use the form included in the municipality's official tender package — not a generic version downloaded elsewhere.
Form 7 Field-by-Field Explanation
REQUIRED Property Description / Roll Number
Copy the exact legal description and municipal tax roll number from the tender advertisement. Do not abbreviate. The roll number is typically 19 digits (e.g., 01-23-456-789-00000-0000).
REQUIRED Tender Amount (Your Bid)
The amount you are offering. Write it in both numerals AND words — any discrepancy is grounds for disqualification. Must be at or above the cancellation price.
REQUIRED Deposit Amount (Certified Cheque / Bank Draft)
Greater of: (a) 20% of your tender amount, or (b) the cancellation price. Must be a certified cheque or bank draft payable to the municipality — personal cheques are void.
IDENTITY Purchaser Name and Address
Your full legal name (or corporation name exactly as registered). The Tax Deed is issued in this name — errors require a correction deed and extra legal costs.
IDENTITY Signature
Sign personally, or as an authorized officer of the corporation (may require a corporate resolution). Some municipalities require a witness. Check the specific package.
Deposit Calculation Table
Your deposit must be the greater of 20% of your bid OR the cancellation price:
| Bid Amount | 20% of Bid | Cancellation Price | Required Deposit |
|---|---|---|---|
| $80,000 | $16,000 | $12,000 | $16,000 |
| $120,000 | $24,000 | $38,000 | $38,000 |
| $250,000 | $50,000 | $35,000 | $50,000 |
| $500,000 | $100,000 | $110,000 | $110,000 |
Submission Process
Complete due diligence
Title search, assess the property externally, calculate your maximum bid (market value minus all costs).
Obtain certified cheque or bank draft
Allow 1–2 business days to obtain from your bank. Made payable to the municipality's full legal name.
Complete Form 7 carefully
Write bid in numerals AND words. Double-check roll number, deposit amount, and signature.
Seal and label the envelope
The outside must NOT reveal your bid. Label as instructed (some municipalities require specific wording on the envelope).
Deliver before the deadline
In person to the municipal office — never mail. Late tenders are rejected regardless of reason.
Common Disqualifications to Avoid
- Deposit below the required threshold (less than 20% of bid or less than cancellation price)
- Personal cheque used instead of certified cheque or bank draft
- Bid amount below the cancellation price
- Discrepancy between numerals and written amount
- Missing signature or unsigned form
- Wrong roll number
- Late submission
- Envelope reveals bid amount
After Winning: Next Steps
If your tender is the highest valid bid, the municipality notifies you and you must pay the balance (bid minus deposit) by bank draft within the completion period — typically 14 calendar days. The municipality then issues a Tax Deed, which you register at the Land Registry Office. Engage a real estate lawyer to handle the closing.
Losing bidders: Your certified cheque is returned by mail after the tender opening, typically within 2–4 weeks.
Legislation References
- Municipal Act, 2001, S.O. 2001, c. 25, Part XI (Tax Sales)
- Ontario Regulation 181/03 — Sale of Land for Tax Arrears