Councils and unpaid rates
Stuff reports: “Millions of dollars in unpaid council
rates have been taken directly from property owners’ mortgages in the past
year. A little-known clause of the Local Government (Rating) Act 2002 [Section
62] gives councils the power to force people’s banks or finance companies to
cover unpaid rates… If a rates defaulter owns a property outright, and thus has
no mortgage, a council will use in-house rates chasers, or debt collectors to
get payment. If that doesn’t work, councils have the power to go to the high
court for an order to sell or lease a property to recover the rates.”
Photo credit: Stuff