Page 32 - English-DBINZ brochure-2019

29 Doing business in New Zealand

TREATY OF WAITANGI AND MĀORI LAND CLAIMS

The Treaty of Waitangi was entered into between the first inhabitants of New Zealand, Māori and the
British Crown in 1840. The Treaty served initially as a means of ensuring a peaceful colonisation of New
Zealand by British settlers. The Treaty guaranteed continued use by Māori of their land and resources.
A series of subsequent land confiscations by the Crown and gradual dissipation of Māori land holdings
resulted in increased reference to the Treaty itself as a means of protecting Māori interests from further
erosion, and restoring to Māori land and resources previously taken from Māori by the Crown.

In response to pressure to formally adopt the Treaty and for a fulfilment of guarantees provided under
the Treaty, the New Zealand Government enacted the Treaty of Waitangi Act in 1975. This legislation
established an administrative body - the Waitangi Tribunal - to investigate and hear Māori claims relating
to the loss of land and resources.
At present, there are numerous claims under the Treaty of Waitangi Act 1975 by various Māori tribes
throughout New Zealand. These claims, however, do not relate to privately owned land except in certain
limited situations where the land was previously held by certain types of Crown entities. This is because
only Crown land (including certain land previously held by certain Crown entities), resources and assets
are subject to possible restoration to Māori. Accordingly, overseas investors should be aware of possible
Māori land claims when purchasing land or assets that are or have been owned by the Crown or Crown
trading entities.
A potential Māori land claim under the Treaty will generally be indicated by a memorial noted on the
record of title.

PURCHASING LAND - AGREEMENTS FOR SALE AND PURCHASE OF LAND

An agreement for sale and purchase of land in New Zealand, and agreements for certain other
dispositions of land, must be in writing and signed by the parties to the transaction or their lawful
representatives. Generally, the vendor’s real estate agent or solicitor prepares the agreement for sale
and purchase. It is usual for the purchaser to pay a deposit to the vendor’s agent which is released to the
vendor when the agreement becomes unconditional.

An agreement for sale and purchase may be subject to certain conditions or may be unconditional.
Conditions can be included for the benefit of either party. The party having the benefit of a condition
must use its best endeavours to satisfy that condition unless the agreement states otherwise. If
conditions cannot be satisfied within the stipulated time, either party may then avoid the agreement
for sale and purchase, usually by giving written notice to the other party. If the contract is avoided, the
purchaser is generally entitled to the return of any deposit or monies paid.
A prudent purchaser will either make a full investigation of the land before entering into an agreement
(employing professional advisers where appropriate) or, more commonly, make the agreement subject to
conditions which allow that investigation to occur subsequently. Common conditions relate to record of
title investigation, building inspection, resource management issues, arranging finance and (in respect of
leased commercial or industrial buildings) investigation of leases.

FOREIGN INVESTMENT CONTROLS

The Overseas Investment Act 2005 (and its subsequent amendments) sets out a consent procedure for
overseas persons and their associates investing in sensitive land in New Zealand. For more information
about New Zealand’s foreign investment control regime, please refer to page 34.