Overview
Under Alberta's Municipal Government Act (MGA), a municipality must place eligible properties on a tax arrears list, initiate the tax recovery process, and, if the taxes remain unpaid after the statutory timelines, must offer the property for sale at a public auction (tax recovery sale). This process applies to all municipalities governed by the MGA, including cities, towns, villages, counties, and municipal districts.
Most listed delinquent properties never reach auction because owners often pay the arrears, refinance, or enter payment arrangements before the sale date. Many municipalities hold annual tax recovery sales with only a handful of properties, and some years they have none because all arrears are resolved beforehand.
If a property does not sell at the auction, the property may fall into the ownership of the municipality itself. Municipalities advertise tax recovery auctions before they occur, typically on their website, in local newspapers, and through other publications like the Alberta Gazette. Properties are listed with the legal description, reserve bid, and sale terms.
REALTORS® and the clients they represent can buy these homes by:
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Finding details of upcoming sales. These are generally available on municipal websites.
You can visit Edmonton’s Tax Sale Auction page here, which is set to be held on Oct. 29, 2026. - Doing research on properties which clients are interested in. This can include checking for occupancy, pulling the land title, and checking for access issues. Existing occupants may seek to remain on the property despite the title sale at auction.
- Most Alberta tax recovery sales are open to the public, requiring in-person registration and bidding.
- Successful bidders are generally required to provide an immediate deposit, and complete full payment within the municipally-defined time frame. Financing and mortgages are typically not available.
- After the sale closes and all legal requirements are met, the municipality transfers title to the purchaser. The previous owner's mortgage is generally eliminated because the tax recovery process extinguishes many prior interests, though buyers should always review the title and municipal sale terms carefully.
Tax auction properties can deliver great value on property sales, but they come with extensive risk which REALTORS® and clients should be well-aware of.