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Contents (1993 - 30)
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Local Government Act 1993 No 30
Current version for 25 June 2019 to date (accessed 19 August 2019 at 17:34)
Chapter 17 Part 2 Division 5
Division 5 Sale of land for unpaid rates and charges
713   Sale of land for unpaid rates and charges
(1)  For the purposes of this Division, a rate or charge is overdue if:
(a)  in the case of vacant land, it has remained unpaid for more than one year, or
(b)  in the case of any other land, it has remained unpaid for more than 5 years,
from the date on which it became payable.
(2)  A council may, in accordance with this Division:
(a)  sell any land (including vacant land) on which any rate or charge has remained unpaid for more than 5 years from the date on which it became payable, and
(b)  sell any vacant land on which any rate or charge has remained unpaid for more than one year but not more than 5 years from the date on which it became payable, but only if:
(i)  the council obtains a valuation of the land from the Valuer-General, and
(ii)  the total amount of unpaid rates or charges on the land exceeds the valuation, and
(iii)  the council sells the land within 6 months after the date when the council received the valuation.
(3)  The council must not sell any such land unless the general manager or the public officer certifies in writing:
(a)  what rates and charges (including overdue rates and charges) are payable on the land, and
(b)  when each of those rates and charges was made and how it was levied, and
(c)  when each of those rates and charges became payable, and
(d)  what amounts are payable by way of overdue rates and charges on the land, and
(e)  what amounts are payable by way of rates and charges (other than overdue rates and charges) on the land.
(4)  The council may, in the case of adjoining parcels of land (whether in the same or different ownerships) each of which may be sold under this Division:
(a)  sell them separately or as a single parcel and under whatever conditions of sale it considers proper, and
(b)  do such things as it considers appropriate for the purpose of selling the land at its full value.
714   Estates and interests of the Crown in land
This Division does not enable the sale of:
(a)  any estate or interest of the Crown in land, or
(b)  any interest in land owned by the Crown that may not be transferred at law.
715   Notice of proposal to sell land
(1)  Before selling land under this Division, the council must:
(a)  fix a time and place for the sale, and
(b)  give notice of the proposed sale by means of an advertisement published in the Gazette and in:
(i)  a newspaper circulating in the area or part of the area in which the land is situated that is published in print form at intervals not exceeding 26 days, or
(ii)  a manner that the council is satisfied is likely to bring the notice to the attention of persons who may be interested in purchasing the land, and
(c)  take reasonable steps to ascertain the identity of any person who has an interest in the land, and
(d)  take reasonable steps to notify each such person (and the Crown, if the land concerned is owned by the Crown) of the council’s intention to sell the land under this Division.
(1A)  The time fixed for the sale must be no earlier than 3 months and no later than 6 months after the date on which an advertisement is first published in the manner determined by the council in accordance with this section.
(2)  If, before the time fixed for the sale:
(a)  all rates and charges payable (including overdue rates and charges) are paid to the council, or
(b)  an arrangement satisfactory to the council for payment of all such rates and charges is entered into by the rateable person,
the council must not proceed with the sale.
716   Sale of land by public auction
(1)  Any sale of land under this Division must be by way of public auction, except as provided by this section.
(2)  Land that fails to sell at public auction may be sold by private treaty.
(3)  Land may be sold under this Division to the council, a councillor, a relative of a councillor, a member of staff of the council or any relative of a member of staff of the council in the case of sale by public auction, but may not be so sold in the case of sale by private treaty.
717   Payment of purchase money
(1)  The purchase money for land sold under this Division must be paid to the council, and the council’s receipt is a discharge to the purchaser in respect of all expenses, rates, charges and debts referred to in section 718.
(2)  The purchase money for land purchased by the council must be paid by way of a transfer between the appropriate funds kept by the council.
(3)  Any such transfer is taken to be:
(a)  payment to the council of the purchase price of the land, for the purposes of section 722, and
(b)  purchase money received by the council on the sale of land for unpaid rates and charges, for the purposes of section 718.
718   Application of purchase money
The council must apply any purchase money received by it on the sale of land for unpaid rates and charges in or towards payment of the following purposes and in the following order:
(a)  firstly, the expenses of the council incurred in connection with the sale,
(b)  secondly, any rate or charge in respect of the land due to the council, or any other rating authority, and any debt in respect of the land (being a debt of which the council has notice) due to the Crown as a consequence of the sale on an equal footing.
719   What if the purchase money is less than the amounts owing?
If the purchase money is insufficient to satisfy all rates, charges and debts referred to in section 718 (b):
(a)  the amount available is to be divided between the rates, charges and debts in proportion to the amounts owing on each, and
(b)  the rates, charges and debts are taken to have been fully satisfied.
720   What if the purchase money is more than the amounts owing?
(1)  Any balance of the purchase money must be paid into the council’s trust fund and held by the council in trust for the persons having estates or interests in the land immediately before the sale according to their respective estates and interests.
(2)  The council may pay the balance of the purchase money or any part of the balance to or among the persons who are, in its opinion, clearly entitled to it, and the receipt of the person to whom any payment is so made is an effectual discharge to the council for it.
(3)    (Repealed)
721   Apportionment of rates on subdivided land
(1)  This section applies to any land on which a rate or charge is levied and which is subsequently subdivided.
(2)  If part only of any such land is sold under this Division, any unpaid rates and charges in respect of the land may be apportioned by the council on the recommendation of the Valuer-General.
722   Conveyance or transfer of the land
The council, on payment to it of the purchase money, may convey or transfer the land to the purchaser without any other authority than that conferred by this section.
723   Land is conveyed free of certain interests
(1)  A conveyance or transfer under this Division vests the land in the purchaser for an estate in fee simple freed and discharged from all trusts, obligations, estates, interests, contracts and charges, and rates and charges under this Act or any other Act, but subject to:
(a)  any reservations or conditions for the benefit of the Crown affecting the land, and
(b)  any easements, restrictive covenants, positive public covenants created in accordance with section 88D or 88E of the Conveyancing Act 1919 and public rights of way affecting the land.
(2)  This section does not apply to a leasehold estate under a lease that may be transferred at law in land owned by the Crown.
724   Special provisions concerning leases of land owned by the Crown
(1)  This section applies to a leasehold estate under a lease that may be transferred at law in land owned by the Crown.
(2)  A conveyance or transfer under this Division of a leasehold estate to which this section applies vests the leasehold estate in the purchaser freed and discharged from all trusts, obligations, estates, interests, contracts and charges, and rates and charges under this or any other Act, but subject to:
(a)  any debt payable to the Crown, and
(b)  any liability for any breach before the conveyance or transfer of the lease, and
(c)  the provisions of the Crown Land Management Act 2016 applicable to the leasehold estate.
725   Transfers not invalid because of procedural irregularities
A transfer or conveyance issued by a council under this Division is not invalid merely because the council has failed to comply with a requirement of this Division with respect to the sale of the land to which the transfer or conveyance relates.
726   Registration of transfer of land under the Real Property Act 1900
(1)  On lodgment of a transfer of land under the Real Property Act 1900, the Registrar-General is to make such recordings in the Register kept under that Act as are necessary to give effect to this Division.
(2)  The transfer does not operate at law until it is registered under the Real Property Act 1900.