Partnership Law Act 2019

Relationship of partners to third persons and to each other - Relationship of partners to one another

40: Partnership land treated as personal property as between partners

You could also call this:

"Partners treat shared land like personal items, not real estate"

When you and your partners own land together as part of your partnership, you need to think of it as if it were a piece of personal property, like a car or a phone, rather than as real property like a house or a farm. This rule applies even if one of your partners dies. In that case, the people who are in charge of the deceased partner's estate (called personal representatives) will be treated as if they were the partner. This rule also applies between the people who inherit from the deceased partner and the personal representatives. However, if you and your partners have agreed to treat the land differently, then this rule might not apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206039.


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Part 3Relationship of partners to third persons and to each other
Relationship of partners to one another

40Partnership land treated as personal property as between partners

  1. Land that has become partnership property must be treated as between the partners as personal property and not real property.

  2. If a partner is deceased,—

  3. the reference to the partners in subsection (1) includes the personal representatives of the deceased partner; and
    1. subsection (1) also applies as between the heirs of the deceased partner and the deceased partner’s personal representatives.
      1. This section applies unless the contrary intention appears.

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