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?
Correct Answer
B) It needs owners holding 75% of the interest, then Māori Land Court confirmation
Under s 150C of Te Ture Whenua Māori Act 1993, a sale of Māori freehold land needs the consent of owners who together hold at least 75% of the beneficial freehold interest. The seller must also give the preferred classes of alienees a right of first refusal (s 147A), and the Māori Land Court must confirm the sale if it is satisfied of the matters in s 152.
Why This Is the Correct Answer
Disagreement among owners is settled by the statutory threshold: the sale needs the consent of owners holding at least 75% of the beneficial interest (s 150C). The Māori Land Court then confirms it if the s 152 criteria are met; it does not decide whether selling is a good idea.
Why the Other Options Are Wrong
Option A: The sale can proceed once owners holding a simple majority of the shares agree
A simple majority is not enough; the Act sets the bar for a sale at owners holding 75% of the beneficial interest.
Option C: It cannot proceed unless every one of the 47 registered owners agrees to sell
Unanimity is not required, so owners holding less than a quarter of the interest cannot block the sale on their own.
Option D: The Crown can acquire the block compulsorily and on-sell it to the developer
Compulsory acquisition is for public works under the Public Works Act 1981, not a way to supply land to a private developer.
Deep Analysis of This Treaty Maori Question
Before 2002 the Court had a broad discretion to refuse confirmation, including on grounds of retention. Those provisions (ss 153 and 154) were repealed. Now the Court must confirm if it is satisfied of objective matters: proper execution, no breach of trust, adequate consideration, the purchase money paid or secured, and the s 147A right of first refusal discharged.
Background Knowledge for Treaty Maori
Te Ture Whenua Māori Act 1993 treats Māori land as taonga tuku iho and promotes its retention, but it also lets owners decide. For a sale, the owners' decision is expressed through the 75% consent threshold; the Court's role is confirmation.
Memory Technique
Three steps in order: owners holding 75% agree; the preferred classes get first refusal; the Court confirms.
When owners disagree, do not look for a Court hearing on the merits; look for the 75% threshold followed by confirmation.
Exam Tip for Treaty Maori
Answers that say "simple majority" or "unanimous" are the usual traps. The number is 75% of the beneficial interest.
Real World Application in Treaty Maori
Owners holding 80% of the interest in a block agree to sell to a developer; owners holding 20% object. The sellers first give the preferred classes of alienees a right of first refusal. When none take it up, the sale to the developer goes to the Māori Land Court, which confirms it once satisfied the consideration is adequate and the other s 152 matters are met.
Common Mistakes to Avoid on Treaty Maori Questions
- •Assuming a simple majority is enough
- •Assuming every owner must agree
- •Thinking the Court weighs cultural significance before confirming
Related Topics & Key Terms
Key Terms:
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?
- → 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?
- → Under the Treaty of Waitangi, what was guaranteed to Māori in Article II?
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
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?
Next Question
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?