OVEEDUE RATES

New Zealand Herald, Volume LXX, Issue 21617, 9 October 1933, Page 6

OVEEDUE RATES

INDUCEMENT TO PAY THREAT OF AUCTION SALE The publicity given; to the decision of the Christchurch City Council to Bell by auction properties on which no rates have been paid lor four years or more has induced a number of mortgagees to call on the city rate collector for the purpose of reducing the arrea-y of rates. The rate collector said recently that he expected that the majority of persons concerned wo,uld try to pa.v something off the arrears rather than lose their properties, but in a number of cases there was every likelihood that sales would be made. It is about 12 years since the Citv Council found it necessary to put up a property for sale in this way. but. oil several occasions the arrears of rates wert- not paid until the eve of the sale. The Ratine Act gives a local authority absolute power to sell a property for the recovery of rates after r>i.\ months' notice lias been given to the owner or mortgagee. When extreme action has to be taken for the recovery of rates, the 10 per cent penalty, plus Court costs and legal expenses, lias to bo added to tha original amount owinc. A property submitted for auction in this way ca;n be sold for the amount of the rates owing, plus tho costs accrued. If. for instance, rates amounting to £lO are owing on a property valued at £SOO. and the costs amount to £5, a reserve of £45 is fixed and if that is the high?.«.t bid received it will bo accepted. Most of the properties that are iikelv to bo sold old and dilapidated, but a few of those on which rates for over four years are stilf' owing are fine modern dwellings. It is hardly likelv that tho mortgagees will be prepared to sacrifice their interest in these properties,