--- title: Watch for Money Owing on Chattels description: Many households are now making use of council loans to assist with insulating their properties so that their properties are warmer and more energy efficient image: https://blog.nzhl.co.nz/hubfs/ioupiggybank-529x350.jpg --- [0800 030 646](tel:0800030646) - Search - [Contact Us](https://nzhl.co.nz/contact-us/) - [Find Us](https://nzhl.co.nz/find-us/) - [Client Login](https://nzhl.co.nz/login/) [![NZHL](https://blog.nzhl.co.nz/hubfs/Nzhl_January2019%20Theme/Images/logo-footer-nzhl.png)](https://nzhl.co.nz/) - [Home Loans](https://nzhl.co.nz/home-loans) - - [Change to NZHL](https://nzhl.co.nz/home-loans/switch-to-nzhl/) - [Buying your first home](https://nzhl.co.nz/home-loans/first-home/) - [Buying your next home](https://nzhl.co.nz/home-loans/next-home/) - [Interest rates](https://nzhl.co.nz/home-loans/interest-rates/) - [Home Loan calculators](https://nzhl.co.nz/home-loans/tools-calculators/) - [FAQ](https://nzhl.co.nz/about-nzhl/faq/) - - [How much could I borrow?](https://nzhl.co.nz/home-loans/tools-calculators/) - [Where's my nearest office?](https://nzhl.co.nz/find-us/) - [How much deposit do I need?](https://nzhl.co.nz/home-loans/first-home/getting-a-deposit/) - [Insurance](https://nzhl.co.nz/insurance) - - [Your Life](https://nzhl.co.nz/insurance/your-life/) - [Your Health](https://nzhl.co.nz/insurance/your-health/) - [Your Home and Car](https://nzhl.co.nz/insurance/your-home/) - [Your Income](https://nzhl.co.nz/insurance/your-income/) - [Request a quote](https://nzhl.co.nz/insurance/request-a-quote/) - [FAQ](https://nzhl.co.nz/about-nzhl/faq/) - - [NEW! 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Council programmes include Auckland Council’s “Retrofit your Home” programme, the “Hawkes Bay Heat Smart Programme,” the “Warm Greater Wellington Programme,” the “Warm Tasman” and the “Warm Dunedin” programmes. Different councils lend different amounts, repayable over up to 10 years with a targeted rate to provide for repayment of the loans. Principal of Pidgeon Law, Joanna Pidgeon, counsels that while these loans help ease the initial cost, they mean that the householder pays increased rates for the specified period to repay the cost of the subsidy. “When a property is sold during that period of increased rates,” she says, “the issue becomes one of disclosure and making an adjustment on the settlement statement to ensure that the vendor repays that loan from the sale proceeds, unless the purchaser agrees to take over liability for those increased rates in a specific separate clause.” How do you find out whether a property is affected? The targeted rate may be discovered on a LIM report in Auckland with a note that the property is on the “PIR Register” (Property Interests Register), with an additional note on the “Retrofit Your Home Programme.” There is a telephone number and email address to contact the council about such matters but this can take time which you don’t always have when putting an offer together. ADLSI is contacting all councils which operate these programmes with a view to them including specific information about targeted rates with all rating requests. Auckland Council is improving its system in notifying solicitors when they make rates queries when preparing settlement statements. In the meantime, when making rates requests, best practice would be to ensure that the request is made in writing and to ask also whether there are any targeted rates on the property including insulation targeted rates. Vendors’ solicitors need to be careful with their undertakings to pay rates on settlement that they are not exposed in terms of undertaking to pay charges that they do not deduct from sale proceeds before disbursing sale proceeds to clients. It is preferable that both vendor and purchaser are aware of the impact of any targeted rates, and liability to pay, prior to entering into a sale and purchase agreement, so that there are no surprises on settlement. So the next time you look to buy or sell be sure you consider the question of the loan on your rates bill. *Source (REINZ Mag 2015)* Written by Pauliene van Strien [Pauliene](http://pauliene.mikepero.com/) is a Licensed Real Estate Agent with Mike Pero based on the beautiful Kapiti Coast. Having seen a fair bit of the world after visiting NZ she lost her heart to it and in 2014 took the plunge emigrated her with her husband. You can follow Pauliene on her [Facebook page](https://www.facebook.com/PaulienevanStrienMikePerorealestatekapiticost?fref=ts) or contact her on [pauliene.vanstrien@mikepero.com](mailto:pauliene.vanstrien@mikepero.com) or 04 902 7800 *The information contained in this article is of a general nature and should not be taken as advice. 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