Based on the current legislation there is no requirement for the postponed rates and charges to be paid when a property is sold/transferred.
When we issue a 603 Certificate for a property that has postponed rates, we include the following statement:
“This property is subject to postponed rates and, under Section 597 of the Local Government Act 1993 (NSW), the entitlement to the same ceases if the whole of a parcel of land used or occupied solely as a site for a single dwelling-house, or as rural land, ceases to be so used or occupied. The balance of the postponed rates and interest at the date of this certificate totals $x,xxx.xx.”
We also provide the requesting solicitor an Application for Postponed Rates for the purchaser to complete and return to Council to confirm that they are aware of the potential liability if the use of the property changes under their ownership.
We have also noticed that when a property has been sold/transferred and the new owner has not completed an Application for Postponed Rates, the Valuer General does not provide a postponed land value component for the rate assessment following a General Revaluation.
Regards
Anthony
