Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Dealing with land held for public works

40: Disposal to former owner of land not required for public work

You could also call this:

“Giving back land the government doesn't need anymore”

When the government or a local council doesn’t need land anymore for a public project, they should try to sell it back to the person they bought it from. This applies if the land isn’t needed for any other public work or for trading with someone else.

The government or council should offer to sell the land back to the original owner or their heir. They’ll usually sell it at the current market price, which a professional valuer will decide. Sometimes, they might sell it for less if they think that’s fair.

If the government or council and the original owner can’t agree on a price, they can ask a special court to decide.

There are some times when they don’t have to offer the land back. This includes if it would be too hard or unfair to do so, or if the land has changed a lot since it was bought.

If the land is an odd shape or size that makes it hard to sell to anyone else, they can sell it to someone who owns land next door.

This rule doesn’t apply to some land that was bought between 31 January 1982 and when a new law started in 1987, if the work wasn’t really important.

When they talk about the ‘successor’ of the original owner, they mean the person who would have gotten the land if the original owner had died owning it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46055.

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Part 3 Dealing with land held for public works

40Disposal to former owner of land not required for public work

  1. Where any land held under this or any other Act or in any other manner for any public work—

  2. is no longer required for that public work; and
    1. is not required for any other public work; and
      1. is not required for any exchange under section 105—
          1. the chief executive of the department within the meaning of section 2 of the Survey Act 1986 or local authority, as the case may be, shall endeavour to sell the land in accordance with subsection (2), if that subsection is applicable to that land.

        1. Except as provided in subsection (4), the chief executive of the department within the meaning of section 2 of the Survey Act 1986 or local authority, unless—

        2. he or it considers that it would be impracticable, unreasonable, or unfair to do so; or
          1. there has been a significant change in the character of the land for the purposes of, or in connection with, the public work for which it was acquired or is held—
              1. shall offer to sell the land by private contract to the person from whom it was acquired or to the successor of that person—
            1. at the current market value of the land as determined by a valuation carried out by a registered valuer; or
              1. if the chief executive of the department within the meaning of section 2 of the Survey Act 1986 or local authority considers it reasonable to do so, at any lesser price.

                1. If the chief executive of the department within the meaning of section 2 of the Survey Act 1986 or local authority and the offeree are unable to agree on a price following an offer made under subsection (2), the parties may agree that the price be determined by the Land Valuation Tribunal.

                2. Subsection (2) shall not apply to land acquired after 31 January 1982 and before the date of commencement of the Public Works Amendment Act (No 2) 1987 for a public work that was not an essential work.

                3. Where the chief executive of the department within the meaning of section 2 of the Survey Act 1986 or local authority believes on reasonable grounds that, because of the size, shape, or situation of the land he or it could not expect to sell the land to any person who did not own land adjacent to the land to be sold, the land may be sold to an owner of adjacent land at a price negotiated between the parties.

                4. For the purposes of this section, the term successor, in relation to any person, means the person who would have been entitled to the land under the will or intestacy of that person had he owned the land at the date of his death; and, in any case where part of a person's land was acquired or taken, includes the successor in title of that person.

                Notes
                • Section 40(1): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
                • Section 40(1)(b): amended, on , by section 2(7) of the Public Works Amendment Act (No 2) 1987 (1987 No 67).
                • Section 40(2): substituted, on , by section 2 of the Public Works Amendment Act 1982 (1982 No 182).
                • Section 40(2): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
                • Section 40(2A): inserted, on , by section 2 of the Public Works Amendment Act 1982 (1982 No 182).
                • Section 40(2A): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
                • Section 40(3): substituted, on , by section 2(7) of the Public Works Amendment Act (No 2) 1987 (1987 No 67).
                • Section 40(4): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).