The Land Sales Act 1984 places restrictions on the sale of allotments and lots. It protects consumers, ensuring that land is described accurately.
Under the Act, vendors and purchasers can apply for a land sales exemption to enable them to enter into a contract of sale earlier than if they had to wait for the new lots to be registered with the Department of Environment and Resource Management.
They can seek an exemption if the parcel of land will not be subdivided into more than five portions.
You can seek an exemption under the Act for the following provisions:
- restrictions on selling (Section 8)
- land identification (Section 9)
- vendor telling purchaser about significant variations between disclosure plan and later plans (Section 10)
- purchaser being given registrable instrument of transfer and other documents (Section 10A)
- contractual requirement regarding holding of money (Section 11)
- limit on deposit amount (Section 11A)
- trustee's duty (Section 12).
Sections 8 and 9 are the most common provisions that people seek exemption from.
You can apply for a land sale exemption if you are a:
- purchaser and have the vendors consent
- legal representative of either party.
If only one parcel of land registered with the Titles Office is going to be subdivided into five or fewer allotments, you will need to lodge only one application using Land Sales Act Form 2 - Application for exemption (PDF, 423 KB).
When two parcels of land are registered separately with the Titles Office and are being amalgamated, and each of the original lots are subdivided into five or fewer number of allotments, you must lodge two separate applications.
When separate allotments of land that have adjoining borders are on the same registered plan, and where both allotments are being subdivided (without realigning the boundaries), an exemption may be granted by making separate applications for each allotment, as long as each allotment is subdivided (into no more than five proposed allotments).
We cannot assist with disputes relating to specific contractual agreements, or provide legal advice. If you do need independent legal advice, contact a private solicitor.
Last reviewed 25/03/2013