603 certificates

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  • #18770
    Jeanne Palmer
    Participant

      Upper Lachlan Shire

      Council made a request upon issue of 603 that the rates and charges on a particular Assessment be settled in full for the financial year. I was advised by the solicitor acting for the vendor that this would not be done and settlement would be to the end of the second instalment only.

      The reply from the solicitor is as follows:

      Section 603 (5) merely creates an obligation upon Council to provide information, and in particular, to state:

      “(a) the rates, charges or other amounts due or payable to the council in respect of the land and when they became due or payable”.

      The Section does not impose an obligation to pay the Rates. That obligation is governed by, among other sections, section 562:

      562 Payment of rates and annual charges
      (1) Annual rates and charges may be paid in a single instalment or by quarterly instalments.
      (2) If payment is made by quarterly instalments, each instalment is to be a quarter of the rates or charges, disregarding any remainder, together, in the case of the first instalment, with the remainder. However, if the amount of an instalment, other than the first instalment, is not a multiple of 10 cents, the amount of each instalment in excess of a multiple of 10 cents is to be subtracted from that instalment and added to the first instalment.
      (3) Except as provided by subsection (4)–
      (a) if payment is made in a single instalment, the instalment is payable by 31 August, and
      (b) if payment is made by quarterly instalments, the instalments are payable by 31 August, 30 November, 28 February and 31 May.
      (4) If the rates and charges notice is not served by 1 August–
      (a) the single instalment (if payment is made in a single instalment), or
      (b) the first 2 instalments (if payment is made by quarterly instalments),
      is or are payable by 30 November, or by the day that is 30 days after service of the notice, whichever is the later.
      (5) On or before 31 October, 31 January and 30 April, a council must send reminder notices (to be sent separately from the rates and charges notice) to each person whose rates and charges are being paid by quarterly instalments.
      I would appreciate any thoughts comments on his reply. Just curious to see how others read this reply to the local Government Act.
      I will not be responding to this solicitor’s email.

      Jeanne

      #18774
      Suzi Flynn
      Participant

        Sydney City

        Hi Jeanne,

        The solicitor is right. There is no obligation to pay any rates on settlement. Any unpaid rates and charges will simply become the responsibility of the new owner.

        Suzi

        #18773
        Ken Bakon
        Participant

          Hi Jeanne,
          I agree with Suzi

          Ken

          #18772
          Robert Hay
          Participant

            The Hills

            Hi Jeanne

            The solicitors and Suzi’s interpretation is correct. At Ryde we get settlement on the instalment amount all the time. Any future instalment is the responsibility of the new owner.

            Robert

            #18771
            Trevor Holland
            Participant

              Lithgow

              Hi Jeanne
              Concur with the comments made by everyone. There is no requirement for rates to be paid in full at the time of settlement.
              Sometimes we receive payment of the instalment. Sometimes it will for the balance outstanding including future instalments.
              Really depends on the agreed terms of settlement.

              Trevor

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