Under a Treaty settlement, an iwi holds a right of first refusal over certain Crown-owned land. What does this mean if the Crown later decides to sell that land?
Correct Answer
B) The Crown must offer it to the relevant iwi entity before anyone else
Settlement legislation commonly gives the post-settlement governance entity a right of first refusal over specified Crown land (RFR land) for a set period. Before disposing of RFR land, the Crown must offer it to the entity. If the entity declines, the Crown may sell to someone else, but not on more favourable terms than those offered to the entity.
Why This Is the Correct Answer
Settlement rights of first refusal require the Crown (and some Crown bodies) to offer RFR land to the post-settlement governance entity before disposing of it to anyone else, for the period set in the settlement legislation. If the entity declines, the Crown may sell to others, but not on more favourable terms.
Why the Other Options Are Wrong
Option A: Any later buyer must obtain Crown approval before each resale of the land
A right of first refusal does not create a Crown approval regime; it only obliges the owner to offer the land to the iwi entity first.
Option C: The land cannot be sold at all for 25 years after the settlement date
A right of first refusal does not ban sales; it controls who gets the first offer when the land is disposed of.
Option D: The Crown must sell it to Māori buyers at a price below market value
The iwi entity is offered the land on the terms the Crown proposes; nothing requires a discount to market value.
Deep Analysis of This Treaty Maori Question
An RFR is commercial redress: it gives the iwi a chance to buy back land in its rohe when the Crown decides to sell, without forcing any sale. The details, including the land covered, the period, notice requirements and exceptions, are set out in each settlement Act, so a licensee should check the specific Act and the record of title.
Background Knowledge for Treaty Maori
Treaty settlements are negotiated between the Crown and iwi and given effect by legislation. RFR land is usually Crown-owned when the settlement is made, and the RFR is often noted on the record of title. Once the land passes to a private owner in accordance with the RFR, the right generally stops applying to it.
Memory Technique
RFR = the iwi gets first look. Nothing stops the sale; it just changes the queue.
When a settlement RFR appears in a question, look for "offered to the iwi entity first", not approval regimes, sale bans or discounts.
Exam Tip for Treaty Maori
An RFR is about who gets the first offer; it does not set the price below market.
Real World Application in Treaty Maori
A Crown agency decides to sell surplus land in an iwi's rohe that is listed as RFR land in the iwi's settlement Act. It sends the post-settlement governance entity an offer notice. The entity declines, so the agency offers the land on the open market and sells it on terms no better for the buyer than those offered to the entity.
Common Mistakes to Avoid on Treaty Maori Questions
- •Thinking an RFR bans sale for a fixed period
- •Assuming the iwi must get a discount
- •Confusing a settlement RFR with the Māori Land Court's confirmation of sales
Related Topics & Key Terms
Key Terms:
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