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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 - Legal proceedings to recover unpaid levies with unpaid rates

76: Application of balance of proceeds

You could also call this:

"What happens to leftover money after a property is sold to pay unpaid rates and levies?"

Illustration for Local Government (Rating) Act 2002

When a property is sold to recover unpaid levies and rates, the money from the sale is used to pay some costs first. After that, the Registrar must pay any leftover money to Public Trust. You can find out more about how the money is used first by looking at section 75. The Registrar follows the rules to make sure the money goes to the right people.

Public Trust then pays the leftover money to the people who are entitled to it, and they also get interest on that money. The High Court decides who gets the money and when. The Court can make this decision without a big court case, it can just be done by motion in Chambers.

If a property is leased instead of sold, the Registrar still has to follow the rules to pay the leftover money. After the costs are paid, according to section 75, the Registrar checks if there is someone in New Zealand who should get the rent money. If there is, the Registrar tells that person they can collect the rent, tells the lessee about it, and stops collecting the rent themselves.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM132739.

Topics:
Housing and property > Land useMoney and consumer rights > TaxesGovernment and voting > Local councils
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75B: Application of proceeds of rating sale or lease that involves levy, or

"What happens to the money when a property is sold or leased to pay unpaid rates and levies?"

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77: Sale or lease of abandoned land, or

"What happens to land when the owner stops paying rates and abandons it"

Part 3Assessment, payment, and recovery of rates and remission, postponement, and write-off of rates
Assessment, payment, and recovery: Legal proceedings to recover unpaid levies with unpaid rates

76Application of balance of proceeds

  1. After the proceeds of a rating sale have been applied under section 75, the Registrar must pay the balance (if any) to Public Trust.

  2. Public Trust, on the order of the High Court (which may be made by motion in Chambers), must pay the balance to those persons who are entitled to it, together with interest.

  3. After the proceeds of a lease have been applied under section 75, the Registrar must, if there is a person in New Zealand entitled to receive the rent,—

  4. notify that person that he or she is entitled to collect and receive the rent; and
    1. notify the lessee to that effect; and
      1. cease collecting the rent.