24 properties were sold at a May auction organised by a regional council. Photo: Kazuri Photography.
A regional council has flagged its intention to push for reforms to the conditions under which councils can sell people’s properties.
The move came as a report to Queanbeyan-Palerang Regional Council (QPRC) revealed new details about its recent sale of land over unpaid rates.
During the meeting, councillors also voted to make a submission about the issue to the upcoming LGNSW Annual Conference, set to be held in November.
Earlier this year, QPRC announced it was seeking to recoup unpaid rates through the sale of dozens of properties. A May auction attracted 87 registered bidders, and all 24 properties were sold.
QPRC general manager Rebecca Ryan told Region after the auction the council would undertake a review to make sure the process of future land sales over rates was “improved”.
A report on the auction process was received by councillors at a recent meeting, revealing that, following the auction, seven properties were “handed back” to QPRC.
Deposits for those properties were kept by the council and offset against the outstanding rates.
Two have also been purchased under private treaties as part of QPRC negotiations.
It also lists the total costs of running the auction as $129,591, spread across three categories.
Ms Ryan also previously said the goal of the auction was to only recoup the amount owed in rates, meaning if the sale price went above what was owed in unpaid rates, the extra would be kept in a trust for the private owner of the block.
If unclaimed, the money will be sent to NSW Revenue.
According to the report, $653,275 will be held in trust for the owners, while $43,260 in unpaid rates was written off after the auction.
During the meeting, the council also passed a motion written by Mayor Kenrick Winchester, calling for the Local Government Act 1993 to be amended.
The motion called on QPRC to make a submission to the upcoming LGNSW Annual Conference that councils be able to sell “remnant or ‘sliver’ land parcels” to an adjoining landowner without needing a public auction.
Councils would also have to offer land for sale with vacant possession as a standard practice.
It also calls for the act to clarify if council general managers can execute contracts for these sales and create a statutory way for councils to recover reasonable costs when a property is taken off the market due to a late payment or settlement.
Councillor Katrina Willis, who was the only councillor to vote against the motion, said the second provision risked giving government power to evict people who weren’t responsible for unpaid rates, such as renters.
“I cannot support legislative change that would make it easy for any council to evict someone from their home,” she said.
The review also proposes several changes to how the council manages (and avoids) future land sales as QPRC signalled its intent to organise similar auctions biennially.
One of the changes is QPRC engaging with property owners who have unpaid rates for four years, such as through payment strategies.
In NSW, the process to sell land can start after a property’s rates have been left unpaid for more than five years.
“By reviewing these eligible properties more regularly, this will provide the opportunity for council staff to work with ratepayers to ensure arrears are brought up to date and/or payment plans are in place so eligible properties for sale are minimised and positive outcomes are achieved for ratepayers,” the report noted.
Council staff would also keep additional control over title deed searches and reviews.
