Sale of Land

Under Section 181 of the Local Government Act 1989

Under the Local Government Act 1989 (VIC), councils have the power, in limited circumstances, to sell land to recover unpaid rates and charges.  This process is used only as a last resort, after all reasonable attempts to recover the debt have been unsuccessful.

Legislative Authority

Council's authority to sell land for unpaid rates and charges is provided by section 191 of the Local Government Act 1989.

When can Council Sell Land?

In accordance with section 181(1) of the Act, Council may sell land (or cause the land to be transferred to itself) only if all of the following conditions are met:

  • The rates or charges (including interest and enforcement costs) are more than three years overdue;
  • No current payment arrangement exists, including where a payment plan has been entered into but is not being complied with; and
  • Council has obtained a court order requiring payment of the outstanding amount (or part of that amount).

Notice and Sale Process

Before selling land, Council must comply with strict statutory requirements under sections 181(2), 181(5) and 181(6) of the Act, including:

  • Obtaining a written valuation of the land prepared within the last six months;
  • Serving written notice, at least 4 weeks prior to the date of sale or transfer, to all registered owners and any persons with an interest in the land;
  • Giving public notice of its intention to sell the land at least 4 weeks prior to the date of sale or transfer; and
  • Where the land is to be sold by auction, providing at least 14 days notice of auction details.

Recovery of Costs

Under section 181(7) of the Act, Council is entitled to recover from the proceeds of sale or transfer:

  • All expenses incurred in connection with the sale or transfer;
  • The outstanding rates or charges, including interest and enforcement costs; and
  • Any other amounts due to Council in respect of the land.

Further Information

For more information about rates, visit the 'Rates' page on the Yarriambiack Shire Council website.

Public Notices for Sale of Land Under Section 181

No current Public Notices of Sale of Land.

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