GROWN TENANTS

Gisborne Times, Volume LXXXIV, Issue 12902, 1 July 1936, Page 2

GROWN TENANTS

RATES ON LAPSED PROPERTIES. borougfi protected. PROPORTION TO RENTS RECEIVED. NO LIABILITY WHEN MORTGAGOR. IN POSSESSION. The much-discussed problem of the payment of rates on properties purchased through the Crown by means of State Advances, the Discharged Soldiers' Settlement Act., etc., came before the Borough Council last evening on receipt of the following letter Jrom the Minister of Finance, the lion. W. Nash, who wrote in reply to a letter from the council on tho •subject: —,

“It has been decided that where tlio Crown is the owner or mortgagee of property in a borough, and as owner u: mortgagee in possession lets such property in short tenancies, the Crown will protect the borough for rates proportionately to the rents received. ft is considered that this arrangement is a fair one as between the boroughs and the Crown, ensuring as it does that the Crown shares with the boroughs the rents received.

“With regard io tile suggestion that the Crown should accept liability where the mortgagor is still in possession of the property, the position is that, in such cases, the mortgagor is liable, and the borough has its proper legal remedy for. suing the mortgagor personally. If, moreover, there is any equity in the property above, the amount of the Crown’s mortgage, the borough can, no doubt, obtain si purchaser if it sells the property under the Hating Act, subject to the Crown mortgage.”

. The .Mayor said the decision was satisfactory to some degree, but nut hi the last portion. It was, however, a. great advance on previous, years. Now that the Slate is getting the rent the Council would get something. Several co uue : ) ions wanted to knowhow (he pro rata portion was to he decided. The Mayor admitted that he did not know. They could only wait and see. If Crown lands- are occupied the council gob full rates, but up',to the prestnt (he council got nothing in (he ease of State Advances. Cr. .CL Bradley Smith said. it 1 , appeared • that the council would get rates in proportion to the rent's! received. '-" The letter was received.