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?
Correct Answer
D) It must not be sold on terms more favourable than those offered to the iwi.
The Crown's Red Book explains that under a right of first refusal the vendor agency must first offer specified land to the claimant group. If the group does not accept, the agency may sell on the open market but must not do so on terms more favourable than those offered to the group.
Why This Is the Correct Answer
The RFR stops the Crown offering an outside buyer a better deal than the iwi was offered.
Why the Other Options Are Wrong
Option A: It must be sold at auction so that the iwi can bid alongside the other buyers.
The Red Book describes an offer to the claimant group, then an open-market sale on terms no better; auction is not required.
Option B: It must be sold within 30 days, or the right revives.
The Red Book does not set that rule; the limit it describes is on the terms of the later sale.
Option C: It may be sold on any terms once the iwi declines, because the right ends when refused.
The department must not give an outside buyer terms more favourable than those the iwi was offered.
Background Knowledge for Treaty Maori
Source: https://whakatau.govt.nz/assets/Treaty-Settlements/The-Red-Book/MOJ0152_OTS_red-book_Aug25_FINAL_WEB.pdf
Exam Tip for Treaty Maori
After a declined RFR offer, the open-market sale cannot beat the iwi's terms.
Common Mistakes to Avoid on Treaty Maori Questions
- •Thinking a right of first refusal ends completely once the first offer is refused.
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?
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