Owners preparing a s 147A first-refusal notice for a sale are worried that preferred-class members will simply offer the minimum price. What must the notice say about price?
Correct Answer
B) It must set out the terms of sale but need not disclose the minimum sale price.
Section 147A(6) says that, for a sale, the notice must specify the terms of sale but need not disclose the minimum sale price set for the land. The terms may be set out in a document at a place or website described in the notice.
Why This Is the Correct Answer
Section 147A(6)(a) requires the terms of sale but expressly does not require the minimum price.
Why the Other Options Are Wrong
Option A: It must state the minimum sale price so that preferred-class members can tender fairly.
Section 147A(6)(a) says the notice need not disclose the minimum price set for the land.
Option C: It must state the registered valuation, which becomes the fixed price for preferred classes.
The Act does not require the valuation to be published or fix the price at the valuation.
Option D: It may not mention any terms, as preferred classes negotiate privately.
The notice must specify the terms of sale, either in the notice or in a document it points to.
Background Knowledge for Treaty Maori
Source: https://www.legislation.govt.nz/act/public/1993/0004/latest/whole.html
Exam Tip for Treaty Maori
The notice gives terms, not the reserve price.
Common Mistakes to Avoid on Treaty Maori Questions
- •Thinking preferred classes are entitled to buy at a published or valuation price.
More Treaty Maori Questions
A block of Māori freehold land has hundreds of owners, many living overseas or hard to trace. What practical challenge does this usually create when some owners want to sell?
The Treaty principles are often summarised as "the three Ps". Which of these is NOT one of them?
What is a key consideration for real estate agents when dealing with Maori land transactions?
A block of Māori freehold land has 150 owners with defined shares of different sizes. Under Te Ture Whenua Māori Act 1993, whose agreement is needed before the owners can sell the block?
In a situation where Crown land is being returned to Maori ownership through a Treaty settlement, what is the most likely land status classification it will receive?
- → What is the key difference between general land owned by Māori and Māori freehold land?
- → In the context of the Treaty of Waitangi, what does the principle of partnership mean for modern property transactions?
- → A developer wants to buy a block of Māori freehold land with 47 owners in three whānau groups who disagree about selling. Under Te Ture Whenua Māori Act 1993, what decides whether the sale can go ahead?
- → Under Te Ture Whenua Maori Act 1993, what is the primary purpose of the Maori Land Court?
- → Which classification of land under Te Ture Whenua Maori Act 1993 is subject to the most restrictions on alienation?
- → The Treaty principle of "active protection" is often raised in property discussions. What does it require, and of whom?
- → Owners of a block of Māori freehold land ask a licensee to sell it. What should the licensee's first step be?
- → What is the most appropriate approach for a licensee handling a property that may affect Māori interests?
- → Which type of Māori land can be freely bought and sold on the open market without restriction?
- → Someone asks a licensee to sell land they say is Māori freehold land. What is the licensee's most appropriate first step?
People Also Study
Property Law & Legislation
56 questions
Agency Practice
89 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions
Related Study Resources
Previous Question
Owners of a Māori freehold block want the Māori Land Court to partition it so one of the new blocks can be sold to an outside developer. What kind of partition does the Court say is needed?
Next Question
Surplus Crown land subject to a Treaty settlement right of first refusal is offered to the iwi governance entity, which declines to buy. The department then sells on the open market. What limit applies to that sale?