When the Peacocke family looked to sell their King Country farm red flags popped up; the land was designated Maori land. Part of the farm was Maori land, the Court of Appeal ruled, following administrative mistakes way back in 1980 with Maori Land Court consent still needed for any future sale.
Ownership of Maori land has a troubled history in New Zealand ranging from outright confiscation following invasion by colonial troops, through quasi-legal manipulation of land purchases by the colonial government followed by paternalistic intervention with Maori Land Court consent required to validate sales.
Most land in New Zealand is now general land with ownership recorded on Land Information’s electronic register. Ownership of land remaining in customary Maori ownership is recorded separately on registers held by the Maori Land Court. For administrative convenience, some Maori land is now recorded on the Land Information electronic register where it is denoted as Maori freehold land. For the Peacockes, sale of their King Country farm ran into legal difficulties when it was discovered ownership recorded on the Land Information register did not match Maori Land Court records.
The Court of Appeal was told the Maori Land Court in 1976 consolidated ownership of customary Maori land in the Maniapoto known as Puketiti 2B2B1 as being owned by Raimona Lee as to 44.8 shares and Puku Doherty as to 9.2 shares. Maori custom sees land pass to descendants on death, resulting in ownership splintering into ever smaller shares over time. This rule does not apply to general land owned by Maori; they are free to sell, mortgage and bequeath this land as can any other owner of general land.
In 1980, Ms Lee sold her 44.8 shares in Puketiti to an Ian Walsh. He did not purchase Mr Doherty’s smaller share. As was required, approval from the Maori Land Court was given to the Walsh purchase from Ms Lee. In an administrative error, Maori Land Court authorisation for ownership to be also recorded on the Land Information register with issue of a certificate of title saw Mr Walsh being recorded as sole owner, having ownership of both Ms Lee’s and Mr Doherty’s interest in the land. Ownership of Puketiti has subsequently passed through several hands, each purchaser unaware of Mr Doherty’s descendants having rights as part-owners and also unaware that Maori Land Court consent was needed for each subsequent sale.
Asked to unravel the shambles, the Court of Appeal ruled legislation in force at time of the 1976 Walsh part-purchase meant Puketiti was and remained Maori freehold land. Maori Land Court consent was needed for any further sale and also for any re-description of the land from Maori freehold status to general.
Land Transfer Act rules mean the Peacockes are now legal owners of all the land. They purchased in good faith, unaware of the earlier mistake. Mr Doherty’s descendants are entitled to compensation. The Maori Land Court and Land Information each blame the other for the 1980s error.
re Totoro Trust – Court of Appeal (5.10.22)
22.174