In my previous post I covered The Transfer Instrument.
Notice of Change of Ownership of Rating Unit
This is the easiest part of the process but finding an example on line proved impossible for me so here is the one I used.
Basically, it's a notice the Vendor can send to the local council so that rate payments are billed to you, the new owner.
Here's mine prepared for our fictitious example - my real one was identical except for the details:
In my next post I will show you how to prepare the LINZ Lodgement form.
Hi I'm gifting a small title to my son. The land will continue to be used for farming. Is there any harm in my continuing to pay the rates as we are heavily discounted by merit of amount of land owned (lessor rate)
ReplyDeleteexcellent question. I too had in mind the transfer by gift or otherwise to someone who is either too young or who i did not wish to know yet of the transfer. AFAIK councils do not particularly care who pays the rates as long as the rates reflect the land use. Part of the transfer process is the information being formally passed to the council so that the transferor no longer has to pay those rates. If you are subdividing to gift there will be separate rates. A different model will apply - ie higher rates. If the parcel of land is already under its own title and you do not intend to change the land use (like build a house on it and connect to services) I don't see any problem. Note - I AM NOT A SOLICITOR - i'm well educated and not quite over the hill
DeleteHi. This form has a box for "Vendor's Soilcitor".
ReplyDeleteIf they are not using their solicitor for this transaction, do you know what I should put in there?
it wouldn't matter. I made up this notification from various sources. The intent is to let the council know you are paying the rates from this point forward. The seller wants this from the buyer so that the buyer doesn't slack off and let the seller incur and maybe pay rates he needn't pay.
DeleteHi, is the sale amount relevant or could any amount be used? ie; $1.00
ReplyDeleteIt's a good question. Find out. Come back and add an answer here for future readers.
Delete" i'm well educated and not quite over the hill" Ditto😊 The front page of the one-size-fits-all real estate contract has a large copyright stamp which proves your conspiracy theory because it says "Copyright REINZ/NZLS." When I have been presented with the form, and verbal contracts for the sale of land are unenforceable in a court without some written evidence- but who wants any part of a deal that goes to court and even with a lawyer that happens if the money involved is enough to cover the lawyer and Court costs! As I started to say when I have been presented with the form I write in the extra conditions page, “NOTWITHSTANDING anything to the contrary herein contained the Vendor may do his own conveyancing.” If the real estate agent produces a letter from the purchaser’s lawyer saying he will advise his client not to sign then reply direct to the lawyer and say a complaint will be laid with Commerce Commission for anti-competitive behaviour with a copy to the NZ law society. And as soon as the contract is completed and change over date (and time eg no later than 2pm) has been set write to the purchaser’s solicitor and say, “If one of your partners or directors will provide me with a signed solicitors-undertaking that s/he will ensure the transaction is not electronically registered (with LINZ) until after the sale money is paid into my bank account number 123456789 without fee or deduction then you may act on my behalf as my solicitor too.” This means the purchaser’s solicitor has full control of the dealing and can have their law clerk do the whole thing electronically in the usual way. In effect the law firm is merely giving you the same legally binding promise they have already given to their client’s bank plus no extra costs and delays for them around a LINZ paper transaction which totes suits you too.
ReplyDeleteWin Win!
excellent. Thank you.
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