Vancouver Moves to Reverse Sale of Condo After Owner’s Death Discovered

Vancouver city officials are seeking to reverse the sale of a leasehold condominium valued at $1.6 million, auctioned off due to unpaid taxes last year. This decision follows the revelation that the property’s owner, Melba Dorothy Hoffman, passed away eight years ago. The city’s actions stem from a significant oversight regarding the owner’s status when the property was sold at auction.

The property, located at 1208-1575 West 10th Ave, had not had its property taxes paid since 2019. It was sold at the city’s annual tax sale on November 6, 2024, for a bid price of $272,000, which is less than one-fifth of its assessed value. The unit is owned by the Vancouver School Board and was leased to Hoffman long-term. City officials had attempted to send tax notices to Hoffman, but claimed there had been no confirmed communication with her for “many years.”

On October 24, 2024, a report submitted to the Vancouver City Council revealed that the school board informed city staff of Hoffman’s death. The report stated, “The leasehold owner is deceased and has been deceased since 2016.” This situation constitutes a “manifest error” since the required notices prior to the sale could not have reached her.

The school board learned of Hoffman’s death in mid-September, confirming it through a relative and legal counsel. Hoffman acquired the property in 2000 for $470,000. Despite the unit being mortgage-free, it has several liens, including unpaid British Columbia speculation and vacancy taxes, complicating its status.

The recent auction was part of a broader effort by the city to recoup unpaid taxes from properties that had delinquent bills. Buyers must pay the “upset price,” which includes unpaid taxes, interest, and penalties, immediately after placing a winning bid. However, ownership does not officially transfer until after a one-year redemption period. During this time, the original owner can reclaim the property by paying the outstanding amounts.

The condominium was not sold in earlier tax sales due to a misunderstanding that it was Crown land. The buyer, whose identity has not been disclosed, paid approximately $92,000 as the upset price. The city has since communicated its intention to cancel the sale, offering the buyer a refund along with six percent interest, totaling about $5,500.

As the city prepares to restore the taxes owed on the property, it emphasized that the representative of Hoffman’s estate would now be responsible for managing the property and addressing the outstanding tax obligations. The issue is expected to be discussed at the upcoming city council meeting, scheduled for Tuesday, just two days before the end of the redemption period on November 6, 2024.

The city’s annual tax sale will take place at Vancouver City Hall at 10 a.m. on November 12, with a list of properties up for auction to be published on the city’s website a week prior to the event.