Sale of land for overdue rates
Council has a set process for collecting outstanding rates and charges.
Council will issue:
- rates notices
- reminder notices
- collection correspondence
- a claim against the property owner in the Magistrates Court.
Council will seek judgement if the owner fails to respond, and the outstanding rates and charges remain unpaid.
Sale of land for overdue rates proceedings
Council may consider properties for Sale of land for overdue rates and charges proceedings for:
- residential properties with rates and charges outstanding for three years or more
- vacant and commercial land with rates and charges outstanding for one year or more where judgement has been obtained.
These proceedings are generally held each year, in line with the Local Government Act 2009 and Local Government Regulation 2012.
Council sells the properties according to the following conditions:
- The property is sold “as is”, meaning no building or pest inspection can be undertaken by the potential purchaser.
- No physical viewing of the inside of the property can be carried out.
- All properties will be sold subject to any mortgage, lien, bill of sale, caveat, judgement, writ or other charge, agreement or process registered against or in any way affecting the land in favour of the Crown or any Crown instrumentality or person representing the Crown.
Overdue rates auction
There are currently no properties scheduled for auction.
Before public auction
Registered owners, mortgagees and interested parties will receive a Notice of Intention to Sell from Council. Property owners have a minimum of three months to clear all rates and charges before a property is advertised for public auction and sold.
Where are properties advertised for sale?
Properties are advertised in the Courier Mail, on Council’s website and at each affected property.
Will all properties be sold at auction?
Owners of the properties have up until the date of the auction to pay their outstanding rates and charges. A list of properties will be available on Council’s website up until the day of the auction. If payment is received before the auction, the auctioneer will advise attendees of any properties no longer being auctioned.
What happens at the auction?
Prospective buyers must register their details with the auctioneer before the auction begins.
If there is a successful bidder, they will be required to sign a contract of sale. A 10 percent deposit must be received by 4:00 PM on the auction day. Settlement will be 14 days from the day of auction.
What happens after payment for the property is made?
After payment, Council’s Legal Services department will arrange for the transfer of ownership forms to be completed. The buyer must lodge these documents with Titles Queensland as soon as practicable. On lodgement of the transfer documentation, the Registrar of Titles must register the transfer to the purchaser free of all encumbrances (section 145 of the Local Government Regulation 2012).
After all rates and charges have been cleared, all other monies owing on the property will be disbursed by Council to the relevant parties. Any surplus funds from the auction will be given to the previous owner.
Responsibilities of the new owner
The purchaser is responsible for any eviction of the previous owner or occupier. The new owner will be responsible for all costs associated with this process.