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Unpaid rates lead to sale of property

By Gibson Sheat

Unpaid rates lead to sale of property

Whether you are purchasing your first home, family home, rental property, commercial property, retirement home, or simply refinancing your property, it pays to remember the consequences of not keeping your rates paid and up to date with your local Councils.

When signing that all important mortgage enabling your loan funds to be available on your settlement or refinance date, you have agreed to keep the rates on your property paid up to date at all times.

Consequences of falling behind in your payments may lead to the Council informing your Bank under Section 62 Rating Powers Act 2002. Council can accept payment of the rates and arrears directly from your Bank. This payment will then be treated as an addition to your mortgage until the unpaid rates have been paid. For serious arrears, the consequence can be a Rating or Mortgagee sale of your property.

Topics: Property
 

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