Plain language law

New Zealand law explained for everyone

Public Works Act 1981

Compensation - The award

100: Land subject to rent charge

You could also call this:

“Rules for paying for land that has rent charges”

When someone is paid money for their land, and that land has a rent charge on it, there are some special rules. You and the person who gets the rent can decide together how much of the money should go to pay off the rent charge. If you can’t agree, a special group called a Tribunal will decide for you.

If only part of the land with a rent charge is being paid for, you and the rent receiver can decide how much of the rent charge should be paid off. If you can’t agree, the Tribunal will decide. They’ll make sure the remaining land is still good enough to cover the rest of the rent charge.

Sometimes, if the payment for the land is not more than $250, the government or local council can choose to pay all the money to you, even if there’s a rent charge. They won’t get in trouble for doing this.

In this law, when we say “rent charge”, we also mean an annuity. An annuity is like a regular payment someone gets.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM46958.

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Part 5 Compensation
The award

100Land subject to rent charge

  1. If the land in respect of which compensation is awarded or compensation or purchase money is paid is subject to any rent charge—

  2. the owner of the land and the party entitled to the rent charge may agree; or
    1. failing agreement, the Tribunal shall determine—
        1. what part of the compensation or purchase money shall be paid to the party entitled to rent charge in redemption of it.

      1. If the land is part of land subject to any rent charge—

      2. the owner of the land and the party entitled to the rent charge may agree; or
        1. failing agreement, the Tribunal shall determine—
            1. what part of the rent charge shall be redeemed and what part of the compensation or purchase money shall be paid in its redemption, so that the remaining part of the land subject to the rent charge shall be as good security as before for the part of the rent charge remaining unredeemed.

          1. Notwithstanding anything in this section, the Minister or local authority, as the case may be, shall have a discretion to pay the owner of the land the full amount of any compensation where the compensation does not exceed $250, without incurring any liability to the holder of the charge.

          2. In this section, the expression rent charge includes an annuity.

          Compare
          • 1928 No 21 s 95