Court of Appeal

CASE NO.                                     VOL. NO.                                            PAGE

POINT EAST INVESTMENTS                    - and -             ANGELA BARRY AND

LIMITED (IN TRUST) and STEVE                                       SANDRA BARRY

HANIAS (IN TRUST)                    

(Appellants)                                                                                                              (Respondents)

CA161771                                                Halifax, N.S.                                           Freeman, J.A.

[Cite as: Point East Investments v. Barry, 2001 NSCA 7]

APPEAL HEARD:                                 December 4th, 2000

JUDGMENT DELIVERED:                 January 17th, 2001

SUBJECT:         Tax Sales; Duty to Record Tax Deed; Priorities; Constructive Notice; Assessment Act, R.S.N.S. 1989 c. 24, S. 162.

SUMMARY:        The respondents purchased a condominium apartment from a bank without actual notice that it had been the subject of a tax sale by the Regional Municipality of Halifax, which had registered a certificate of sale for taxes against it.  The appellants, the tax sale purchasers, failed to register the tax deed within 15 months of the tax sale, as required pursuant to s. 162 of the Assessment Act.  The appellants appealed from a judgment of the Supreme Court of Nova Scotia finding that the appellant had lost their priority and that the respondents were entitled to it as bona fide purchasers for value without notice. 

ISSUE:                Did the registration of the tax sale certificate fix the respondents with constructive notice disentitling them to claim ownership pursuant to s. 162 of the Assessment Act?

RESULT:            The appeal was dismissed.   The registration of the tax sale certificate did not fix the respondents with notice of the tax deed, which the appellants failed to register within the time limit prescribed by s. 162 of the Assessment Act.