Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Compensation - Additional compensation

73: Assistance to purchase dwelling

You could also call this:

“Extra money to help you buy a new home if the government takes your house”

If your house is taken for a public work, and you can’t afford to buy a similar house with the money you get, you might get extra help. The government can give you more money to help you buy a new home that’s about as good as your old one.

To get this extra money, you need to follow some rules. You must leave your old house empty for the government. You need to have owned the house when you left it. The house must have been your main home for a while before you left. Also, you shouldn’t have wanted to sell your house, or you only agreed to sell because the government said they needed it.

If you get this extra money, you’ll need to pay it back. It’s like a loan. The government will keep a record that you owe them money, and this will be linked to your new house. You can’t sell your new house without the government’s permission while you still owe them money.

You’ll need to pay back the money when the government says, and they might charge you interest. If you think their rules for paying back are unfair, you can ask a special group called the Land Valuation Tribunal to look at them.

The Land Valuation Tribunal can change the rules if they think they’re unfair, or they can make new rules that are more fair.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46396.

Previous

72E: Adjustment of compensation payable under section 72 or 72C, or

"The government can change how much money people get when their land is taken"

Next

74: Assistance to purchase farm, commercial, or industrial property, or

"Help to buy a new farm or business if the government takes yours"

Part 5 Compensation
Additional compensation

73Assistance to purchase dwelling

  1. Subject to the provisions of this section, where any land that—

  2. has been notified; and
    1. contains a dwelling used as a private residence—
        1. is taken or acquired for the public work for which it was notified and the market value of the owner's interest in the land is insufficient to enable the owner to acquire another private residence of a standard reasonably equivalent to the residence on the land so taken or acquired, there may, in the discretion of the notifying authority, be advanced to the owner by the authority, in addition to the compensation otherwise payable under this Act, such amount as the authority considers reasonable to assist the owner to acquire another private residence of a reasonably comparable standard.

      1. An advance shall not be made to an owner of land under subsection (1) unless—

      2. the owner has given vacant possession of the land taken or acquired and all buildings and structures on the land to the notifying authority; and
        1. the owner was the owner of the land on the date on which vacant possession was so given; and
          1. the dwelling on the land was the principal place of residence of that person for a substantial part of the period between the date of notification and the date of so giving vacant possession; and
            1. the person giving vacant possession—
              1. was not a willing party to the taking or acquisition of the land; or
                1. was a willing party to the taking or acquisition principally because the land had been notified.

                2. Any money advanced under this section shall constitute a debt due by the person to whom it is paid to the notifying authority who or which paid it, and shall be a charge on the estate or interest of that person in the land acquired by him, or in the land on which a dwelling is constructed by him, with the assistance of such money, and notice of the charge may be registered against that land under the provisions of subpart 5 of Part 3 of the Land Transfer Act 2017.

                3. Except with the consent of the chief executive of the department within the meaning of section 2 of the Survey Act 1986 (where the notifying authority is the Minister) or the notifying authority (in any other case), a dealing in connection with any such estate or interest (other than a dealing which is not required to be executed by the registered owner) shall not be registered while a charge under subsection (3) is registered against the land.

                4. For the purposes of subpart 5 of Part 3 of the Land Transfer Act 2017, notice of any charge under subsection (3) and any certificate releasing any such charge, and any consent under subsection (4), may be signed by the chief executive of the department within the meaning of section 2 of the Survey Act 1986, where the notifying authority is the Minister.

                5. Any money advanced under this section shall be repaid to the notifying authority at such reasonable times and on such reasonable terms and conditions (including interest) as may be specified by the notifying authority when making the advance.

                6. If the owner considers that any provision specified by the notifying authority under subsection (6) (other than as to the amount of money paid) is unreasonable he may within 20 working days after receiving advice of the provision apply to the Land Valuation Tribunal for a review of the provision.

                7. On receipt of such an application the Land Valuation Tribunal shall review the provision and may confirm or alter it or may omit it and substitute some other reasonable provision.

                Compare
                • 1928 No 21 s 101C
                • 1975 No 138 s 30(1)
                Notes
                • Section 73(1): amended, on , by section 2(7) of the Public Works Amendment Act (No 2) 1987 (1987 No 67).
                • Section 73(3): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
                • Section 73(4): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
                • Section 73(4): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
                • Section 73(5): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
                • Section 73(5): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
                • Section 73(5): amended, on , by section 22(b) of the Public Works Amendment Act 1988 (1988 No 43).