However, the buyer is now seeking part of that money from the council because he claims the previous owners "stripped the property bare" of about $50,000 of "fixtures and fittings", and his insurance company is refusing to pay.

The house in the town of Mole Creek, near Launceston, was owned by the Beerepoot family, who still own the Melita Honey Farm in nearby Chudleigh.

The Meander Valley Council decided last year to auction the property after the family had refused to pay rates for nine years, saying the land was "owned by God".

The family explained their position to the council in a letter that said: "Council's world view is that the 'law of the land' governs life and thus also provides progress, growth and security. On the other hand, we believe that our Heavenly Father is Sovereign and that He reigns today, thus we worship Him and Him alone so that His will is established on the earth … you are asking us to bow down to a false god which is something we cannot do."

When asked if the family intended to pay the rates before the auction, Fanny Beerepoot said, "Well, there's not really much to talk about."

Mr Styles brought the property for $120,000 at auction last September and took ownership on October 16.

The Meander Valley Council took $15,000 to recover the rates and legal fees. The remaining funds were given back to the Beerepoots.

But the family returned the cash to the council in January with a letter providing an explanation.

"Remitting the balance of the funds remaining of the sale to our family does not absolve the Meander Valley Council or its officers of their responsibility towards the Most High," the letter said.

"The actions that have been undertaken have been against Him and not our family. Therefore responsibility lies with Him and not with us. We therefore reject the [money] that has recently been remitted to us."

Since the money has been returned, the council has done nothing with the funds, its general manager Martin Gill said.

The new owner, Geoff Styles, claimed the property was "unliveable" after he took ownership.

"There were bare wires hanging out of walls and ceilings. Vanity basins, cook tops, range hoods, and all the light fittings were taken, it was virtually gutted," he said.

He said the former owners were living at the property until at least September 17.

He said when he took over the house it had no power nor water because the previous owners had taken the pumps.

He lived in a motor home for months because the property was uninhabitable, he said.

Even though he insured the property during settlement, his insurance company, CGU, told him on January 15 it would not pay for the damages because he had no proof the goods were there on the day of the auction.

Since then he has been working to fix the property.

Mr Gill said Mr Styles had been in contact with the council, but had not made any request for funds.

In response, Mr Styles said: "I have actually written a letter to the council, but it’s going through the process at the moment.

Mr Styles said he had approached the previous owners to find out if they had taken the fittings.

"At the end of the day, if I hadn’t have been told by Mrs Beerepoot that they had given the money back, the council might have never told me," he said.

Mr Gill said he "did not know" if there was any damage to the house when Mr Styles took ownership of the property.

Mr Gill said he was unsure for how long the property had been vacant in between the Beerepoot family vacating and Mr Styles moving in.

Mr Styles' finance broker, John Wilkinson of Rural Co Insurance Burnie, and the Financial Ombudsman Service are trying to help solve the dispute.

Tasmania Police said the theft was a civil matter and would not comment further.

Mr Styles' insurance company, the Beerepoot family and the ombudsmen have all been all contacted for comment.

- with Holly Monery

The Examiner