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Local Government (Rating) Act 2002

Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates - Assessment, payment, and recovery - Recovery from persons other than owner

62: Recovery of rates if owner in default

You could also call this:

"What happens if you don't pay your property rates on time"

Illustration for Local Government (Rating) Act 2002

If you own a property and do not pay your rates, the local authority can take action. They can tell people who have an interest in your property, like the bank with a mortgage, that you have not paid your rates. The local authority can also accept payment from these people or recover the unpaid rates from them. You can be asked to pay the rates if you have a mortgage on the property and the owner has not paid. If someone else pays your unpaid rates, they can recover that amount from you as a debt or keep it from money they owe you for something else. If a mortgagee pays the unpaid rates, the amount they paid is considered part of the mortgage until they get it back. This rule does not change any agreements people may have about who pays the rates for a property.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132720.

Topics:
Housing and property > Land useGovernment and voting > Local councils
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61: Default by person other than owner, or

"What happens if someone else doesn't pay the property rates they're responsible for"

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"You must pay rates on abandoned Māori land if you use it and the owner can't be found."

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Recovery from persons other than owner

62Recovery of rates if owner in default

  1. If an owner defaults in paying the rates, the local authority may—

  2. notify persons with an interest in the rating unit for which the rates are payable (including an interest as first mortgagee) of—
    1. the fact of the default; and
      1. the provisions of this section; and
      2. accept payment of the rates from the persons referred to in paragraph (a); or
        1. recover, as a debt from the first mortgagee of a rating unit, the rates payable in respect of the rating unit that remain unpaid on a date that is—
          1. not less than 3 months after notice has been given to that person under paragraph (a); and
            1. not earlier than 1 November in the financial year following the year in which the rates were first assessed.

            2. A person (other than a mortgagee) who pays the unpaid rates under subsection (1) may—

            3. recover that amount from the owner as a debt; or
              1. retain that amount from any money that that person pays to the owner in respect of a debt other than that relating to unpaid rates.

                1. If a mortgagee pays the unpaid rates under subsection (1), the amount paid must be treated as part of the money secured by the mortgage until it is repaid to the mortgagee, and the provisions of the mortgage apply to that amount.

                2. This section does not affect any agreement between persons about their liability as between themselves to pay the rates for a rating unit.