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Treaty MaoriUndivided Interestslevel4MEDIUM

An owner holding a small undivided share in a Māori freehold block wants to sell just that share to a private investor with no whakapapa link to the land. What does s 148 of Te Ture Whenua Māori Act 1993 allow?

Correct Answer

A) The share may be sold separately only to a member of a preferred class.

Section 148(1) allows an owner of an undivided interest in Māori freehold land to alienate it to a person in one or more of the preferred classes, and s 148(2) allows a mortgage to a State Loan Department. Section 148(3) says the owner otherwise has no capacity to alienate the interest separately.

Answer Options
A
The share may be sold separately only to a member of a preferred class.
B
The share may be sold to anyone once the s 147A first-refusal notice period has passed.
C
The share may be sold to anyone, because only whole-block sales need owner thresholds.
D
It may be sold to the investor if owners holding 75% agree.

Why This Is the Correct Answer

Under s 148, an undivided share can go separately only to preferred-class members.

Why the Other Options Are Wrong

Option B: The share may be sold to anyone once the s 147A first-refusal notice period has passed.

The s 147A process applies to sales of the land; s 148 limits separate sales of undivided shares to preferred classes.

Option C: The share may be sold to anyone, because only whole-block sales need owner thresholds.

Section 148(3) says owners of undivided interests have no capacity to alienate them except as s 148 allows.

Option D: It may be sold to the investor if owners holding 75% agree.

Consent from other owners does not widen s 148; separate sales of shares go only to preferred classes.

Background Knowledge for Treaty Maori

Source: https://www.legislation.govt.nz/act/public/1993/0004/latest/whole.html

Exam Tip for Treaty Maori

Individual shares stay within whakapapa and ownership circles; whole-block sales follow s 150C.

Common Mistakes to Avoid on Treaty Maori Questions

  • •Treating an undivided share like a freely tradeable investment.
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