The auctions resulted in the sale of all 10 properties. Photo: Supplied.
Murrumbidgee Council successfully sold off 10 properties for which the owners had not paid rates or charges for several years, with over 50 registered bidders taking part in the public auction on 16 September.
The auction was conducted under the provisions of the Local Government Act 1993, which allows councils to sell land for which rates have remained unpaid for more than one year for vacant land or more than five years for other land.
No photographs, descriptions or additional information about the properties were provided by council beforehand. All houses were sold sight unseen.
Murrumbidgee Mayor Ruth McRae OAM said the auction reflected strong interest from the community and the importance of ensuring fairness in the recovery of overdue rates.
“It is never an easy decision to proceed to auction, but as a council we have a responsibility to all ratepayers to recover outstanding debts so we can continue to provide essential services,” the mayor said.
“We are pleased that today’s outcome has enabled us to recover all monies owed to us at council.”
Cr McRae said her council strongly encouraged ratepayers to keep up with their rates payments, as recovering outstanding debts in this way was always a last resort. However, the council would move forward every February with the process of selling properties with arrears of rates greater than five years.
“This is good business management, ensuring the financial sustainability of the council, while making sure all ratepayers are meeting their obligations.”
When the auction was announced earlier this year, there were 23 properties with rates and charges owing for five years or more, totalling almost $385,000. Council was pleased that the outstanding balances were settled on 13 of those properties prior to the sale, allowing them to be removed from the list.
Following settlement, the funds received from each sale are distributed in accordance with the legislation. Monies are first applied to cover the outstanding rates and charges and the costs of the sale, as well as any mortgages, caveats or similar claims. Any surplus funds are then returned to the property owner (the ratepayer whose land was sold).
The council stresses that the sale of land is always a last resort, with significant efforts made to work with property owners before reaching this point.
