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New Zealand law explained for everyone

Public Works Act 1981

Compensation - Additional compensation

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

You could also call this:

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

If the government takes your farm, business, or industrial property for a public project, they might help you buy a similar property. This can happen if the money you get for your old property isn’t enough to buy a new one that’s just as good.

The government can choose to give you extra money to help you buy a new property. This is only if you didn’t want to sell your property, or if 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 of this loan on your new property. You can’t sell or change the ownership of your new property without permission while you still owe this money.

You’ll need to pay back the money when the government says, and they might charge you interest. The government will decide when and how you should pay it back.

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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=DLM46904.

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73: Assistance to purchase dwelling, or

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

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75: Compensation for tenants of residential and business premises, or

"Money for renters who have to move because of government projects"

Part 5 Compensation
Additional compensation

74Assistance to purchase farm, commercial, or industrial property

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

  2. has been notified; and
    1. is used for a farm or for a commercial or industrial undertaking—
        1. is taken or acquired for the public work for which it was notified, and the market value of the owner's interest is insufficient to enable the owner to acquire a similar interest in a farm or commercial or industrial property, as the case may be, of a standard reasonably equivalent to that so taken or acquired on which to continue to carry on farming or the commercial or industrial undertaking, as the case may be, there may, in the discretion of the notifying authority, be advanced to the owner, in addition to the compensation otherwise payable under this Act, such amount of money as the authority considers reasonable to assist him to acquire other land reasonably equivalent to that so acquired on which to continue to carry on farming or the commercial or industrial undertaking.

      1. No money shall be advanced under subsection (1) to any person unless that person—

      2. 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.

          1. 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 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.

          2. 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) no 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 be registered while a charge under this section is registered against the land.

          3. For the purposes of subpart 5 of Part 3 of the Land Transfer Act 2017, notice of any charge under this section and any certificate releasing any such charge, and any consent under this section, 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.

          4. 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.

          Compare
          • 1928 No 21 s 101F
          • 1975 No 138 s 31(1)
          Notes
          • Section 74(1): amended, on , by section 2(7) of the Public Works Amendment Act (No 2) 1987 (1987 No 67).
          • Section 74(3): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 74(4): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 74(4): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
          • Section 74(5): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
          • Section 74(5): amended, on , by section 5 of the Survey Amendment Act 1996 (1996 No 55).
          • Section 74(5): amended, on , by section 23(b) of the Public Works Amendment Act 1988 (1988 No 43).