Several provisions in the Act produce non‑obvious consequences or procedural traps for owners, mortgagees, the Council and the Bank. These are concrete technical points that advisers and affected persons should not overlook.
Starting litigation disqualifies access. The definition of "eligible owner" excludes any person who has instituted proceedings against the Crown, Council or the Bank, or whose predecessor in title has done so (s 3). Initiating private litigation against public bodies or the Bank in connection with landslip damage therefore removes the statutory purchase option. This creates a binary choice for owners considering litigation: pursue common law or statutory remedies, but not both under the Act’s terms. Advisers must counsel clients about the strategic consequence of issuing proceedings before exhausting or using the Crown purchase route.
"Send" means post. The Act defines "send" as "send by post" (s 3). Requisitions, offers, and notices are therefore sent by post. The advisory committee’s 30‑day timeline excludes the "prescribed period" from posting of a requisition until the requested information is received (s 7). Delays in postal delivery, misaddressing, or reliance on non‑postal methods can affect deadlines, and owners must be conscious that statutory clocks are defined around posting and receipt, not electronic service, unless regulations provide otherwise. Recordkeeping of posting dates and tracking is critical.
Assessed value excludes landslip effects; price is 75% of that value. The statutory valuation method requires the Valuer‑General to value the property as if any dwelling or structure were undamaged by earth movements and as if the property and other properties in the area were not affected by actual or potential earth movements (s 9(1)). The purchase price is fixed at 75% of that assessed value (s 9(2)(a)). The combination means that market value reflecting devaluation from landslip is not the starting point; the price is a pre‑defined fraction of a hypothetical undamaged value. For some owners, where market value has fallen sharply due to observable damage and market perception, 75% of undamaged assessed value may exceed current market offers; for others it may be less. The statutory rule removes bargaining over market‑depressed value but also fixes compensation in a way owners cannot negotiate upwards under the Act.
Transfer free of mortgages and charges. Offers require transfer free of mortgages, charges, leases or licences giving occupancy (s 9(2)(b)). Owners therefore need to obtain mortgagee consents and pay out encumbrances before completion; if the mortgage is held by the Bank named in the Act and that Bank is participating in the Fund or advisory committee, the practical settlement arrangements may involve coordination with the Bank. Owners who accept offers but cannot clear encumbrances may face the practical problem of failing to complete; the Act does not provide a statutory escrow or payout mechanism within the text.
Covenants vanish before purchase. Restrictive covenants or obligations on the owner "cease to have effect immediately before any purchase" (s 11(1)). This extinguishes third‑party rights and owner obligations by statute at the moment before transfer. Beneficiaries of covenants and owners should note the narrow exception that covenants relating to necessary services to other properties survive (s 11(2)). Owners relying on the preservation of certain obligations should check whether those obligations are service‑related.
Indemnity and "good faith" carve‑outs. Section 13 eliminates rights of action against the Crown, Council and Bank for damages from earth movement in respect of persons from whom property was purchased (s 13(1)). Section 13(2) further bars actions against those entities for actions taken in good faith to survey, remedy, prevent or alleviate earth movement, whether taken before or after commencement. The Act therefore restricts litigation options; "good faith" is not defined and could become the focus of argument in any contested matter. The indemnities are broad, so owners and third parties should assess carefully whether statutory bars apply in their situation.
Committee composition reflects interested participants. The advisory committee includes members nominated by Tasmania Development and Resources, the Valuer‑General, the Secretary of the Department responsible under the Financial Management Act, a Council appointee, a Bank appointee and a person appointed by eligible owners (s 5(1)). That membership provides direct roles to the Bank and the Council in the advisory process. The Act also authorises the Bank and Council to contribute to the Fund (s 12(4)-(5)). These linkages mean the advisory body will include representatives of entities with financial and policy stakes in the outcome,this is an institutional design point that advisers should factor into procedural strategy and perceptions of impartiality.
No internal appeal procedure specified. The Act provides for committee advice, Ministerial determination and oral acceptance/acceptance mechanics but does not set out a bespoke internal appeal or merits review avenue for applicants who disagree with committee advice or Ministerial decisions. That means persons dissatisfied with outcomes will need to rely on general administrative law remedies,judicial review,which may be limited in scope and timing.
Fund purpose and contributors. The Rosetta Landslip Trust Fund is the statutory funding vehicle for purchases and remediation (s 12(1)-(3)). The Council and the Bank are specifically authorised to contribute to the Fund (s 12(4)-(5)). The Fund may pay for agreements made between eligible owners, Crown, Council and Bank (s 12(3)(c)), which suggests negotiated settlements can be funded by the public account monies, subject to agreement.
Smiths of timing. The Minister must act within 30 days after receiving committee advice to determine whether to offer (s 8(2)(a)), and must send an offer or notice within 14 days of making the determination (s 8(3)-(4)). However the committee’s advice timing can be extended by the "prescribed period" linked to requisitions (s 7). The combined rules create procedural traps where owners might assume speedier administration than the Act requires or that electronic communications replace postal assumptions.
Pre‑existing Crown offers preserved. Section 16 saves any Crown offers made before commencement; such offers have effect as if made under this Act (s 16). Where there were pre‑existing offers, they will fall within the Act’s terms and timings once the Act commences.
Absence of express mortgagee protection mechanisms. The Act requires transfer free of mortgages but does not set out a statutory mechanism for payout/pro rata settlement with mortgagees or for priority disputes. Owners should expect to negotiate settlements with mortgagees and that mortgagees will need to be engaged.
In sum, the practical “gotchas” are concentrated on eligibility exclusions for litigants, the valuation and 75% pricing rule, the requirement to transfer free of encumbrances, automatic covenant extinguishment, indemnities and the postal timing mechanics. Advisers should make these points explicit when counselling owners, lenders and local government.