In relation to my above query, can someone please advise who has the right of call in regards to the settlement amount for properties sold at public auction for unpaid rates.
I have recently done my first of three phases of Sale of Land here at Wollongong. I assume you are talking about setting the reserve price for public auction.
Under the Act you are notice required to set a reserve, but here at Wollongong we had a private valuation done on the 6 properties, considered the UCV from the valuer general and most importantly the rates outstanding. As all you are really trying to achieve is to clear the debt.
Hi Tracey,
Im interested in your above posted, when we did our auction 3 years ago, we did a very similar process to what you have outlined, however I know other Councils who did not set any reserves.
In regards to the VG valuation, did you use the one you had on file, or did you request another? We have a base date of 2013, looking to auction next year, should we obtain another VG vaulation?
I believe you would always want to set a reserve (transparency) & in most cases you would want that reserve to be a figure that is defensible in court if necessary. Obviously the best way of doing this is via the VG or a local valuer/real estate agent. Why? Because they are independent of the process. I don’t believe using the last LV supplied by the VG is a satisfactory reserve because as we all know LV’s bear no relationship to the market value in most cases.
If the land was a piece of land with little or no worth then the amount of outstanding rates may be a suitable number as a reserve.
I don’t fully agree with Tracey’s comment “that all you are trying to do is clear the debt”. Whilst that maybe the outcome intended you still have to achieve the best price for the property which is being sold. There have been several instances over the years (sorry don’t remember all the names etc) in which there has been court action over the sale price or reserve & the aggrieved owner considered it too low.
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