KING COUNTRY TENURES

New Zealand Herald, Volume LVII, Issue 17428, 25 March 1920, Page 4

KING COUNTRY TENURES

ACQUIRING THE FREEHOLD. PROPOSED ' REGULATIONS. TERMS OFFERED TO LESSEES. [BY TELEGRAPH COBBESPONDENT.] TB KUITL Wednesday. The proposed regulations governing the acquisition of the freehold by the lessees of holdings in Maori townships were responsible for a conference held to-night. Delegates attended from Taumarunui and Otorohanga, and great interest was displayed in the matter. • According to the Government's scheme a lessee is a person holding a lease under the Native Townships Act, 1910, or any former Act. A condition precedent to the acquisition by the Crown of any . land leased under the Act is that the lessee shall enter into an agreement undertaking in the event, of acquisition by the Crown that he will as soon as possible, but not later than six months after he is requested by the commissioner, surrender his present lease and purchase) the freehold. The agreement must be accompanied by a deposit of £50, which will go towards the purchasing price if completed, but for feited if the agreement is not carried out. When entering into the agreement the lessee must state whether he elects to ac- , quire the freehold for cash or on deferred

payments. The commissioner will give the lessee notice of the price and the lessee must within the time fixed carry out the agreement. The price shall be the total of the following sums:— The amount paid by the Crown to the owners ; (2) two and ahalf per cent, of the amount paid to cover* thti cost of acquisition j (3) interest on the amount, fixed at 5 per cent., from the date of payment by the Crown until the elate of notice being given to the lessee of the computation of the price and other payments made by the .commissioner.

If the lessee elects to purchase the freehold for cash he must within six mcutns surrender his lease and pay the price in full and all rent owing to the Crown. If the lessee elects to purchase by deferred payments he must within six months deposit _ 5 per cent, of the purchase price, the license .fee, and" all rent due to the .Crown under the lease. He will then hold the laud under license to occupy. The license provides for payment in 19 annual instalments with the right to pay the balance outstanding at any time. Interest on the amount owing will be 5 per cent., payable half-yearly. The holder of a defeiTed payment license cannot assign or otherwise dispose of his interest in the- land unless the Land Board first assents. <■ In a letter dealing with the subject the Minister for ' Lands, - the Hon D. H. Guthrie, says:—•'l am advised'that in many cases the original lessees holding at almost nominal rent from the native owners have subdivided and sub-let at greatly advanced rents without any expenditure on their part. It is questionable whether they will have any great desire to acquire the freehold at present-day prices since they are already obtaining from sublessees a substantial income without much outlay. Even if these lessees do acauire the freehold what guarantee is there that they would give a similar privilege to sublessees at a reasonably proportionate price? I understand that many sublessees have built upon and improved their holdings and their rights require consideration and protection."