• Facebook
  • Youtube
  • LinkedIn
Parry Field Lawyers
  • Home
  • About
    • Insights
    • Terms of Engagement
    • Testimonials
  • Our People
  • Services
    • Property Law
      • Residential Property
      • Property Construction
      • Commercial Property
        • Property Leasing
      • Subdivisions
      • Community Housing Information Hub
    • Advisory
      • Employment Hub
      • Sale and Purchase
      • Financing
      • Governance
      • Technology/ IT
    • Disputes
      • Court. Tribunals, Arbitrations
      • Estates and Wills
      • Divorce and Separation
      • Insurance
      • Employment Hub
      • Family
      • Company and Shareholding
      • Debt Collection
      • Construction
    • Trusts and Asset Planning
      • Wills and Enduring Powers of Attorney
      • Estates
      • Succession Planning and Asset Protection
      • Trust Management
    • Charities/For Purpose Organisations
      • Charities: Information Hub & Healthchecks
      • Governance Essentials
      • Incorporated Societies: Information Hub
      • Faith Groups: Information Hub
      • Impact Investing: Information Hub
      • Social Enterprises/Impact Companies
      • Start-ups and Capital Raising Hub
      • Schools & Education: Information Hub
    • Immigration and Migrants (移民)
      • Work Visas 工签
      • Family Visas 家庭签证
      • Skilled Migrants 技术移民
      • Business and Investment Visas 生意与投资签证
      • Potentially Prejudicial Information 回复移民局质疑 (PPI)
      • Employer Assistance 雇主协助
      • Overseas Investment 海外投资
  • Resources
    • Guides
    • Articles
    • Case Studies
    • Blog
      • Aotearoa Impact Sector Updates
    • Templates
      • Terms and Conditions
      • Terms and Conditions Including Software
      • Non-Disclosure Agreement – One Way
      • Non-Disclosure Agreement – Two Way
      • Independent Contractors Agreement
      • Shareholders’ Resolutions – Written resolution
      • Share Transfer
      • Incorporation – First Shareholder Resolutions
      • Incorporation – First Directors’ Resolutions
    • Videos
      • COVID-19 and Commercial Leases
      • Force Majeure” clauses in Contracts and COVID-19
      • Property sale and purchases and COVID-19
      • Seeds Podcast
  • Careers
    • Summer Clerk Programme
  • Contact
    • Healthcheck
  • Pay Online
  • Search
  • Menu Menu

What happens if you don’t get consent when purchasing sensitive land in New Zealand?

Property, Residential

The Overseas Investment Act 2005 imposes various requirements and conditions on “overseas persons” when investing in New Zealand assets.  A recent case* illustrates the costly consequences of failing to comply with this Act.

In December 2019, the High Court fined two property development companies,  FFG Investment Limited and Grand Sky Limited,  for failing to comply with the Overseas Investment Act 2005. Under section 10 of the Act, an overseas person must get government consent when making an:

  • investment in sensitive land; or
  • investment in significant business assets

In this case, both companies had the same three shareholders and were considered to be an overseas person for the purposes of the Act. FFG purchased sensitive land in

Auckland and later sold it to Grand Sky. However, neither party obtained consent from the Overseas Investment Office. While Grand Sky was an overseas person when they entered into the agreement to purchase the property, it was no longer an overseas person when the purchase was completed.

Both companies were found to have breached the Act by failing to obtain consent. While Grand Sky was no longer an overseas person when the purchase was completed, it was sufficient that they had obtained an interest in the property when entering into the agreement. The companies were fined $123,000 and ordered to pay court costs.

This case highlights the importance of the Overseas Investment Act 2005 and the ramifications of non-compliance.

If you have any questions or concerns arising out of this article, please contact Kris Morrison or Steven Moe at Parry Field Lawyers (+64 3 348 8480).

https://www.parryfield.com/wp-content/uploads/2019/10/AdobeStock_67389110-1.jpeg 2820 4248 Jodi Wareing https://www.parryfield.com/wp-content/uploads/2019/07/Parry-Field-Lawyers-Logo.png Jodi Wareing2020-01-28 12:47:212020-05-27 14:03:45What happens if you don’t get consent when purchasing sensitive land in New Zealand?

Christchurch CBD

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 60 Cashel Street
Christchurch 8013, New Zealand

POSTAL ADDRESS:
PO Box 744
Christchurch, 8140, New Zealand

Christchurch

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
1 Rimu Street, Riccarton,
Christchurch 8041, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Rolleston

PHONE: +64 3 348 8480
FAX: +64 3 348 6305

PHYSICAL ADDRESS:
Level 1, 80 Rolleston Drive,
Rolleston, 7614, New Zealand

POSTAL ADDRESS:
PO Box 8020, Riccarton,
Christchurch, 8440, New Zealand

Hokitika

PHONE: +64 3 755 8673
FAX: +64 3 755 8073

PHYSICAL ADDRESS:
127 – 137 Revell Street,
Hokitika 7810, New Zealand

POSTAL ADDRESS:
PO Box 44,
Hokitika 7842, New Zealand

Parry Field Charitable Foundation

Parry Field charitable members of NZ LAw, Global Cross Legal and SCLA

© Copyright – Parry Field Lawyers     |     Privacy Policy

Does your Charity need a Common Seal?Trade Marks: When is something “similar” too confusing to be registered...
Scroll to top