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Council rate-sale glossary for Australia with 25+ terms defined in plain English. Key terms include: reserve price (the minimum bid, set to recover the overdue rates and costs — not the market value), rateable value / land value (the value a council or the Valuer-General assigns to land for rating), redemption (the owner's chance to pay the arrears and keep the land before the auction), encumbrance, easement and caveat (interests registered on a Torrens title that may survive a sale), and Certificate of Title (the record of ownership identified by a Volume and Folio).
Plain-English definitions of the key council rate-sale terms in Australia — from reserve price to Torrens title.
Overdue rates and charges that a ratepayer has failed to pay. When rates stay in arrears for a set period — about three years in most states, five or more years in NSW — a council can begin the process to sell the land to recover the debt.
The public sale format used for most council rate sales. Registered bidders openly compete and the land is sold to the highest bidder at or above the reserve. The council must advertise the auction beforehand.
A cheque drawn by a bank against its own funds, treated as guaranteed payment. A bank cheque is commonly required to pay the deposit immediately after a successful bid at a rate-sale auction.
A legal notice lodged on a land title that warns of a third party's interest and can block dealings with the land until it is resolved. Always check the title for caveats before you bid.
The official record of ownership under the Torrens system, identified by a Volume and Folio number. It shows the registered owner and any mortgages, easements, caveats or other interests on the land.
The local government authority that levies and collects rates and provides local services. When rates fall far enough into arrears, the council is the body that may sell the land to recover the overdue rates and charges.
The periodic charges a council levies on rateable land to fund local services such as roads, waste and drainage. Unpaid council rates are the debt that ultimately leads to a rate sale.
The portion of the purchase price — commonly 10% — payable immediately after a successful bid, usually by bank cheque, with the balance due at settlement.
A registered survey plan that defines the boundaries of a parcel of land. Land is commonly identified as a Lot on a Deposited Plan, for example Lot 5 DP123456.
The process of investigating a property before you bid: title search, checking zoning, environmental and access issues, and comparable sales. Because rate-sale buyers generally cannot inspect the interior, thorough due diligence is essential.
A registered right for someone to use part of the land for a specific purpose, such as drainage or access. Easements usually survive a sale, so always check the title before you bid.
Any charge, mortgage, caveat or interest registered on a title that limits ownership. Some encumbrances are cleared by a rate sale; others may survive, so confirm the position before you bid.
The state body that maintains the public register of land ownership under the Torrens system — for example NSW Land Registry Services, Land Use Victoria, or Landgate in Western Australia. It is where ownership, mortgages and encumbrances are recorded.
The Act in each state or territory that gives councils the power to levy rates and, ultimately, to sell land for overdue rates — for example the NSW Local Government Act 1993 (s713) or the SA Local Government Act 1999 (s184).
The way land is identified in Queensland and Western Australia, combining a Lot number with a registered plan — for example Lot 5 on RP123456, or a lot on a Survey Plan (SP).
The value a council or the Valuer-General assigns to land for rating purposes. In NSW the Valuer-General provides the land value; in Victoria councils use the site value and the capital improved value. It is NOT the market value.
The account a council issues to a ratepayer setting out the rates and charges owed and the due dates. Unpaid rates notices are the starting point of the arrears that can lead to a sale.
The chance for the owner to keep the land by paying the overdue rates, charges and costs in full before the auction. Once the sale is completed and title transfers, there is generally no redemption.
The minimum price the council will accept at auction. It is set to recover the overdue rates and charges plus the costs of the sale — NOT the market value — which is why reserves can sit well below what a property is worth.
The final step where the balance of the purchase price is paid and title transfers to the buyer. After settlement the buyer has certainty of ownership.
A registered plan for a subdivided building such as a unit or apartment block, where each lot forms part of a strata scheme with shared common property managed by an owners corporation or body corporate.
Reviewing the Land Titles Office records for a property to confirm the registered owner and any mortgages, easements, caveats or other interests. It is essential before you bid, and a solicitor or conveyancer can carry it out.
The system of land registration used across Australia, where the register itself guarantees ownership. A parcel is identified by a Volume and Folio on its Certificate of Title.
The state official who determines land values used for rating and land tax — for example the NSW Valuer-General. These values often underpin the reserve set at a rate sale.
The planning classification a council or state planning authority applies to land, which controls how it can be used or developed (residential, rural, commercial and so on). Always confirm the zoning before you bid.