[Emma Murphy]

I had a property split early last year, of which the solicitors failed to adjust and pay the 2015/16 whole year of rates on settlement. Bear in mind both solicitors are hopeless.

So I have one assessment in the old owners name, with the two parcels of land on it, with a massive rates bill due, I have contacted both parties solicitors regularly, and the new owner and none of them are forth coming with $$$$$.

Any suggestions???? Can I roll the balance to the new owner on 1/7/16?? The old owner has paid his share of the 2015/16 rates based on an area/date basis.

[Ron Peters]

Hi Emma!
The rates remain in the name of the ratepayer until such time as the land is transferred to the new ratepayer.
So the rates will remain in the old ratepayer’s name and he/she will be responsible for the rates until the land was transferred.

The ratepayer who is being charged can then take the matter up with his solicitor but all Council has to worry about is whose name was on the land title search as that person or persons is responsible for the outstanding rates.

Hope that helps?

[Simone Fisher]

Hi Emma,
I’d follow section 573 & apportion the remaining balance between the two new assessments. If the balance of the parent lot was shown on the 603 certificate the solicitor should have made payment of this in full at settlement & if they haven’t the owners should be chasing them to sort out who’s paid & owes what & to make a payment to Council. Might be worth sending a letter to both owners before year end advising them if you intend doing this as the owner who thinks they’ve paid their portion might chase their solciitor a little harder to sort it out with the other owners solicitor.
I’m glad all of the hopeless solicitors don’t just live in Picton. 🙂
Simone

[Emma Murphy]

Thanks Simone for your points…the 603 was issued in May, naturally for the 2014/15 year, and I don’t think they obtained an update, settlement then took place on 7th July.

I have made regular contact with both solicitors since August, old and new owner, since this occurred.

Would sec 573 apply to a split? It refers to a subdivision, in my case I already had lot 1 and 2, and then they sold lot 2.

[John Towers]

Hi Emma,

Yes 573 applies even if the land was separate titles prior to the sale. If you don;t want to apportion yourself you can ask VG to apportion for you.

I would apportion the outstanding rates on the basis of the new LV’s & then write to the new owners (as suggested by Simone) & allow them to resolve the matter/s. That way they can’t say they weren’t aware when you issue the new years notices. They could have been told that the Council would issue new notices for the 2 properties because the rates hadn’t been issued prior to settlement. It’s always better to deal with the owners rather than solicitors because the owners will want it paid.

Also, Sec 560 tells you who is liable for payment & since July 7 the new owners have been liable whether jointly or severally. I would be quoting that to them as well. The fact that they didn’t get a new 603 is irrelevant to the process, once they acquire 560 says it becomes their problem.

Good luck.

JT

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