A Zela Street house auctioned off in Oak Bay’s first tax sale in a quarter century is going up for sale.
Lawyer Patrick Delsey, representing a Vancouver-based mortgage firm, successfully argued in B.C. Supreme Court in Victoria on Wednesday for permission to repossess the house and put it on the market.
Lawyer Michael Soronow, representing Joyce Livia (Zoi) Hahn, the owner of 2367 Zela St., opposed the claim, saying a pending offer of $535,000 had been received.
Delsey argued that “the last-minute offer was simply not good enough,” a point agreed with by court master Carolyn Bouck, who ruled in favour of his client, Paradigm Quest Inc.
Delsey noted that $784,854.30 is owed on the house and no payments have been made on the mortgage since May 2009. The house was appraised at $535,000 last year.
The house was sold to Saanich resident Rob Dosanjh in a property tax sale last fall for $200,000.
Property taxes had not been paid to Oak Bay municipality in three years.
Oak Bay treasurer Patricia Walker said the mortgage company must cover all related penalty and interest charges, plus the interest on Dosanjh’s investment, before it can have clear title on the property and offer it for sale.
Delsey said afterward the house will be put on the market shortly. No selling price had been set.