Cambridge property sold to cover unpaid rates

A rating sale has been completed on a Cambridge property for the first time in at least 20 years to recover nearly $32,000 of outstanding rates.

The ratepayer had owned the property since July 2014 and had not paid rates or metered water charges since September 9, 2016. In total, the council was owed $31,978.98.

Interim chief executive Ken Morris said that taking legal action was the very last resort, as previously agreed payment arrangements had not been complied with.

“All other avenues to recover the outstanding debt were explored and were unsuccessful,” he said.

“There was no mortgage on the property and penalties had not achieved payment. The only option left was to go through the courts.”

The ratepayer, after being advised to make arrangements to clear the rates within three months of the judgement date, failed to do so, forcing the rating sale.

The proceeds of the sale will cover the unpaid rates and Council’s legal fees. The remainder will be paid to the ratepayer.

Local authorities have a number of tools to assist in collecting unpaid rates including penalties, recovery from another party that has an interest in the property (typically a bank, with properties with mortgages) or enforcement through the courts.

Legal action is currently underway on 10 other properties in the district to recover $89,072.85.