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verified Updated 2026

Public Tender
vs Auction

Understanding the two main methods of tax sale property disposition in Canada will help you develop the right strategy for success.

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description

Public Tender

Sealed bids submitted by deadline

gavel

Auction

Live competitive bidding

compare Quick Comparison

Feature
description Public Tender
gavel Auction
Bidding Method Sealed, one-time bids submitted before deadline Open, competitive bidding in real-time
Bid Visibility Private until all bids opened together Fully visible to all participants
Time Pressure check_circle Low - submit anytime before deadline warning High - real-time split-second decisions
Deposit Required Typically 20% certified cheque with bid Registration deposit before event
Research Time Weeks to research before submitting Must research beforehand; no time at auction
Provinces Using
ON NS NB
AB SK MB
description

Public Tender

Sealed bid process where all offers are opened together

How It Works

  1. 1 Municipality advertises the property with tender deadline
  2. 2 Bidders research the property and prepare their offer
  3. 3 Submit sealed bid with deposit before deadline
  4. 4 All bids opened at same time; highest qualified bid wins

thumb_up Advantages

  • check More time to research and make informed decisions
  • check No emotional pressure from seeing other bids
  • check Can bid on multiple properties simultaneously
  • check Remote participation - no need to travel

warning Challenges

  • close No visibility into competing bids
  • close Risk of significantly overbidding
  • close Strict paperwork and deposit requirements
gavel

Public Auction

Live bidding event with real-time competition

How It Works

  1. 1 Municipality advertises the auction date and properties
  2. 2 Register and provide deposit before the event
  3. 3 Attend in person or online; bidding starts at minimum
  4. 4 Competing bids until one bidder remains as winner

thumb_up Advantages

  • check Full visibility into competition levels
  • check Only pay what's necessary to win
  • check Immediate results - know if you won instantly
  • check Market-driven pricing reflects true demand

warning Challenges

  • close Emotional bidding can drive prices above value
  • close Must be present (in-person or online) at specific time
  • close Quick decisions required under pressure

location_on Sale Methods by Province

ON

Ontario

Public Tender

Governed by the Municipal Act. Sealed bids submitted to the municipality. Most common method in Canada's most populous province.

AB

Alberta

Auction

Governed by the Municipal Government Act. Public auctions held by municipalities, often in November. Online auctions becoming more common.

NS

Nova Scotia

Public Tender

Active market with sealed bid tenders. Properties often advertised in local newspapers and municipal websites.

SK

Saskatchewan

Auction

Public auctions conducted by municipalities. Strong agricultural land opportunities.

NB

New Brunswick

Public Tender

Sealed bid tender process. Growing market with affordable entry points for investors.

MB

Manitoba

Auction

Public auctions with good opportunities in agricultural and residential properties.

tips_and_updates Pro Tips for Success

description For Tender Sales

  • 1

    Research Thoroughly

    Use your extra time wisely. Get a title search, check zoning, and research comparable sales.

  • 2

    Set Your Maximum First

    Calculate your max bid based on value minus repairs and profit margin. Don't exceed it.

  • 3

    Double-Check Paperwork

    Incomplete or incorrect tender forms are rejected. Have a lawyer review before submission.

  • 4

    Submit Early

    Don't wait until the last day. Courier delays or office closures can disqualify your bid.

gavel For Auction Sales

  • 1

    Set Absolute Maximum

    Write down your max bid BEFORE attending. The excitement of auctions leads to overbidding.

  • 2

    Stay Calm and Stick to Limit

    When you hit your max, stop. Walk away. There will be other properties.

  • 3

    Register and Prepare Early

    Get your bidder number and deposit sorted well before the auction starts.

  • 4

    Observe First

    Before your first real bid, attend some auctions as an observer to learn the rhythm.

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