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Property Sale information

http://www.gw.govt.nz/property-sale-information

Property Sale information

Updated 3 June 2015 1:14pm

Warm Greater Wellington Scheme – Property Sale information on voluntary targeted rate

Greater Wellington Regional Council offers the Warm Greater Wellington home insulation scheme.

The scheme provides, by way of a “opt in” or voluntary targeted rate, additional financial assistance of up to $3,900 per ratepayer to help fund the cost of home insulation.

Since the scheme commenced in April 2010, Greater Wellington has now provided assistance for over 8,000 homeowners throughout the Wellington region.

Home sales with this rate in place are hitting the market place. This makes it important for lawyers, valuers and real estate agents to ensure that all parties involved in the sale and purchase of a property are aware of the rate and can negotiate in good faith.

What is a voluntary targeted rate?

The term “voluntary targeted rate” describes situations where a council funds specific activity (e.g. insulation, localised sewerage schemes, etc) on behalf of an individual ratepayer because the activity meets council policy objectives as well as benefits the ratepayer.

The scheme is self-funding: it does not impose any additional costs on regional ratepayers other than those whose properties are covered by the scheme.  Homeowners who take up the offer repay the financial assistance through the targeted rate (with interest) over a 9-year period.

The Warm Greater Wellington scheme has been designed to be as low cost as possible to specifically enable low and fixed income earners the chance to benefit from having their homes insulated.

As the funds for the Warm Greater Wellington scheme are recovered by Greater Wellington via the targeted rate, it is important for potential home buyers to be aware of its existence. This is particularly the case in the first year when the work has been carried out and the first rate has not been set (the rate is set in July each year).

The funds do not need to be fully repaid when a property sells; after a change of ownership the remaining portion of the targeted rate is repaid by the new owner.

How it works:

  • The ratepayer completes an application and agreement
  • Greater Wellington approves application, the work is carried out and Greater Wellington is invoiced and pays for the work agreed to.
  • In the following July the rate is invoiced. If no additional payments are made, the rate will be in place for nine years.
  • As Greater Wellington does not collect its rates directly, each month the Wellington region’s eight local and district council’s receive an updated list of all approved applications which are used to update their enquiry and LIM information systems.
  • The application and agreement also has a clause that requires people selling their property to inform potential purchasers of the voluntary targeted rate. 
  •  The following clauses are from the Application Agreement:

4.3    If the ratepayer intends to sell the property in the period after this agreement has been entered into and while a targeted rate will be or is being assessed against the property, the ratepayer must: (1) notify GWRC in writing of the sale; and (2) tell the prospective purchaser about the targeted rate by including a provision in the sale and purchase agreement recording the disclosure

 4.4    If the ratepayer fails to comply with the obligations in clause 4.3 the ratepayer will be personally liable for the outstanding amount despite having sold the property and GWRC may demand the ratepayer must, within 21 days, pay all amounts that are unpaid or are still to be assessed in respect of the targeted rate (by any means available to GWRC)

4.5    If the ratepayer fails to pay the rates invoice for the property by the due date, the provisions of the Local Government (Rating) Act 2002 apply and the ratepayer will incur late payment penalties in accordance with GWRC’s rates policy

Additional information about the Warm Greater Wellington Scheme

  • Whilst homeowners selling a property should inform purchasers and real estate agents of any encumbrances and our ratepayer agreement compels them too, this can not be guaranteed to occur. 
  • Purchasers requesting a LIM report will be informed of the rate. However, to keep the costs of running the scheme to a minimum, the rate is not noted on the Property Title
  • Ratepayers with these rates will be reminded annually of their obligation for disclosure
  • Ideally with everyone being aware of these rates, the existence of them will be appropriately disclosed when a property comes up for sale, however you can email warm@gw.govt.nz to confirm the existence of a loan and a calculation can be provided for repayment if required.  (Please provide property address)