How Public Tenders Work
In a public tender (also called sealed bid), the municipality advertises properties for sale and sets a deadline for bids. Here's the typical process:
Property Advertisement
Municipality publishes list of properties with tender packages (typically 4-6 weeks before deadline).
Research Period
Bidders conduct due diligence, title searches, and property assessments.
Bid Submission
Submit sealed bid with required deposit (typically 20%) by deadline.
Opening & Award
Bids opened publicly. Highest bid above minimum wins (municipality can reject all bids).
Payment & Transfer
Winner pays balance (typically within 14 days). Title transferred after redemption period.
Tender Strategy Tip
Research comparable sales carefully. Your bid should account for the property's condition, the redemption period risk, and potential carrying costs. Don't just bid slightly above minimum - consider what the property is actually worth to you.
How Public Auctions Work
Public auctions are live events where bidders compete openly. The process is faster-paced and more competitive:
Pre-Auction Notice
Properties advertised (typically 2-4 weeks before auction date).
Registration
Register as a bidder (may require deposit or proof of funds).
Live Bidding
Auctioneer calls for bids starting at the upset price. Bidders compete until one bid stands.
Immediate Payment
Winner typically must pay full amount immediately (certified cheque, bank draft).
Auction Strategy Tip
Set your maximum bid BEFORE the auction and stick to it. The excitement of bidding can lead to overpaying. Write your number down and don't exceed it, no matter how competitive the bidding gets.
Which Format is Better for You?
Choose Tender if you...
- Prefer to research extensively before committing
- Can't attend in-person events
- Want to avoid emotional bidding pressure
- Are comfortable with uncertainty about competition
Choose Auction if you...
- Want to see your competition
- Can attend in person and enjoy the process
- Have strong discipline to stick to your max bid
- Want immediate results and faster process
Side-by-Side Comparison
| Aspect | Public Tender | Public Auction |
|---|---|---|
| Time Pressure | Low - weeks to decide | High - seconds to decide |
| Competition Visibility | None - sealed bids | Full - see all bidders |
| Bid Adjustment | Cannot change once submitted | Can increase at any time |
| Attendance Required | No - mail/online submission | Usually yes - in person |
| Payment Timing | Deposit now, balance in ~14 days | Full payment at auction |
| Emotional Risk | Lower - time to think | Higher - competitive pressure |
Ready to Start Bidding?
Browse tax sale properties using both tender and auction formats across Canada.