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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 - Rating sales and leases

71: How rating sale or lease must be conducted

You could also call this:

"Selling or leasing a property with unpaid rates must be done fairly through a public auction or tender."

Illustration for Local Government (Rating) Act 2002

When you sell or lease a rating unit, it must be done by public auction or public tender, as stated in section 70(1). The Registrar is in charge of this process and has the power to make decisions about it. The Registrar can place a reserve on the unit, refuse any tender, or even bid for and buy the unit at the auction.

You become the purchaser or lessee of the unit if you are the highest bidder at the auction or the highest tenderer, and you meet certain conditions. Your bid must be enough to pay the unpaid rates and costs, and you must follow any conditions set by the Registrar.

The Registrar's rights are important in this process, and their decisions can affect who becomes the purchaser or lessee of the unit, as explained in the rules that follow section 70(1).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132732.

Topics:
Housing and property > Land useGovernment and voting > Local councils
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70: Rating unit may be sold or leased, or

"What happens if you don't pay your rates: your property can be sold or leased"

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72: Further powers and duties of Registrar, or

"The Registrar's extra jobs when selling or leasing properties"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Rating sales and leases

71How rating sale or lease must be conducted

  1. A sale or lease to which section 70(1) applies must be by public auction or public tender.

  2. Without limiting the powers of the Registrar, the Registrar may—

  3. place a reserve on the rating unit; or
    1. refuse any tender; or
      1. bid for and buy the unit at the auction; or
        1. put the unit up for sale or lease as often as may be required until it is sold or leased.

          1. The purchaser or the lessee of the rating unit is the highest bidder at the auction or the highest tenderer, as the case may be, if—

          2. the bid equals or exceeds the amount required to pay the unpaid rates and the costs incurred; and
            1. the highest bidder or tenderer has complied with all conditions precedent (if any) that are set by the Registrar.

              1. Subsection (3) is subject to any rights reserved by the Registrar under subsection (2).