LAND SETTLEMENT. PROGRESS MADE UNDER THE ACT

Evening Post, Volume LXXXI, Issue 95, 24 April 1911, Page 3

LAND SETTLEMENT. PROGRESS MADE UNDER THE ACT

THE PUBLIC TRUST OFFICE. ELEVEN ASSOCIATIONS FORMED. Considerable settlement has already taken place as tho result of the operations of the Land Settlement Finance Act, 1909, but, judging from enquiries made from all parts of the country, it is evident that the provisions of the Act are not yet clearly understood. The Act provides that any five or more persons may enter into an agreement in writing for their incorporation as a land-settlement association, aaid for the purchase of freehold land from some person willing to sell. The purchase money is set out in the agreement, which provides a schomo of subdivision into not less than five lots, each lot being not less than tweuty-five"acrea nor more than. 200 acres. No member can hold more thaii one lot. No allotment can exceed 200 acres if tho purchase money appropriated to it does not exceed £2500,"" but in any ca-se it muet not exceed 500 acres. The agreement further provides a scheme for ihe dedi-, cation of roads not less than 66fl wide,' in order to give accesa from each lot' to an existing public road, 'and also for tho expenditure of such roading money as the Grovernor-in-Council considers n-e-' ccss'&ry for the formation and completion of roads, bridges, ?nd culverts. • No person can become a purchaser unless qualified to become a lessee of Crown land under the Land Aot, 1908.' The agreement goes to the Land Purchase Commissioners, who, if satisfied that the price is fair and reasonable, the land is fit for subdivision and settlement, and tho agreement is in all other respects fair and reasonable, so ' report to the Governor, who, by Order-in-Council, confirms the agreement, and incorporates the members as a landsettlement association. Henceforth the association can only act through the Public Trustee, to whom is payable all moneys payable to the association. All moneys payable by the association are paid by tho Public Trustee, and on him are served all notices' and writs required to be served on the association. For the purpose of raising by way of loan the purchase money and roading money, the association (by the Public Trustee) issues debentures payable at 21 years, but with a provision enabling repayment to be made- after five years on giving six months' notice. All the debentures bear interest at a uniform rate, not exceeding 5 per cent., payable half-yearly. No debentures can be issued at a discount. These debentures, after being signed by the Public Trustee, are signed on behalf of the Crown, with a certificate stating that they aro guaianteed by the Government, which guarantee is enforceable against the Crown direct on default. The purchase from the vendor to the association is then completed by execution of the transfer, which transfer is exempt from stamp duty. The roading money mu3t now be expended, and for this purpose the Public frustce may agree with the Minister of Public Works or with any local authority to expend the same on behalf of Uie association. Each member *of the association now pays to the Public Trustee a deposit of 4 per cent, of his purchase money, and an additionp-1 sum of £ per cent, as a contingency and management account. The Public Trustee then executes a transfer to each member of the lot agreed to be taken up by him and at the agreed price, and such member then executes a mortgage to the Public Tiustee to securo the 96 per cent, owing as purchase money. It must be noted that the purchase money includes the roading money allocated to each member's allotment. . The mortgage is for a term of twenty years, and bears interest at a quarter per centum per annum higher than the rate being paid on the debentures. The member can pay off the principal within the twenty years as he chooses, but must pay each year on the amount then owing an amount of principal and interest equal to 6 per cent. Until one third of the mortgage moneys are paid off the mortgagor cannot dispose or deal with hie allotment except with the written consent of tho Minister of Finance, given on the recommendation of the "Land Board. This does not, however, affect the right of disposing of the land on the death, lunacy, or bankruptcy of the member. Till tho one-third is paid off the member must continuously reside on his allotment, except in sa far as he is exempted in writing by tho Minister of Finance acting on the- recommendation, of the Land Board of the district. While any moneys remain owing on his mortgage a member cannot remove any minerals or commit wasto. The Act makes provision for the Public Trustee, on the failure of an original purchaser to complete, to sell the defaulting member's allotment to another person duly qualified to become an original purchaser. if any member makes default in completing his purchase or executing his mortgage, he is liable to pay to the Public Trustee as liquidated damages a sum equal to one-tenth of the purchase money, besides which the Public Trustee can enforce specific performance. A contract of purchase is not capable of being dealt with. A useful provision in the working of the scheme is the provision that reserves may be set aside for the purpose of a site for a school, churches, cemetery, recreation ground, dp.iry factory, or any other purpose of common utility. Such reservf is exempt from land tax, rates, and liability under the Fencing Act for fencing. All certificates of titlo issued to the members have a restriction endorsed thereon preventing any person acquiring an interest therein if such person already is interested in land to the extent of £2500, and before registration of any dealing a statutory declaration must be lodged with the district land registrar showing compliance with the Act. No agreement for salo and purchase can be confirmed by the Governor unless the land agreed to be bought is under the Land Tra-nsfer Act. This has j the effect »t simplifying and cheapening ' the proceedings, besides permitting tho foregoing restrictions against aggregation being noted on the title. EXPENSES OF TAKING UP LAND. The machinery of the Public Trust Office has been uped extensively to make the administration of the Act as cheap as possible to members. The Public Trustee has provided the funds to pay the purchase moneys owing by the association to the original vendor, taking up the debentures as security for the advance. Owing to tho long 'term lof the debentures, the large amount thereof and the guarantee of the Crown, he has been able- to advance the moneys at 4£ per cent, the debentures having by the Act been made proper investments for trustees. The function of the Public Trustee is to staaid between tho 'association and the public, and to see that a fair rate of interest i>; paid. The preparation of legal document** and the. carrying out ol all lega^. work in connection with tho association is completed by the solicitor to tho Public Trust Office at nominal ' fees, thus enablmg the expenees 1,0 the members to ne gflfit afl low. aa £o«ft}bj€. ■ T^§ getUe-.

ments with the vendors and members aro carried out by the district manager of the Public Trust Office, under the instructions of the head office, moneys being remitted through the Post Officft free of exchange. , The members have to agree among themselves as to the costs of the subdivision survey necessary before titles to them can 'issue, but aiter the incorporation of the association "and th* advent of the Public Trust Office in tho management, tho costs can be definitely ascertained. To a member taking up an .allotment at a price of £2000, the cash outlay to get title would; be: — (a) Four per cent, deposit ... £80 0 0 (b) One-half per cent, contingency account 10 0 0 (c) Fee for preparation of transfer to him 2 2 0 (d) Fee for preparation of ' mortgage to association ... 33 0 ! (c) Stamp duty on his transfer (7s 6d for every £50 of i consideration.) ... .. 15 0 0 (t") Registration fee for transfer 10 0 fg) Fee for new ■ certificate of title r " v l 0 0 (h)* Registration fee for mortgage ... ..._ ... 10 0 £112 5 0, (a), (b), and (c) will, of course, vary, according to the amount of considcration_ money ; the other items will remain stationary. , Tin's limitation of expenses is making tho Act very popular, and large mimbers of people 'aro taking up land. The aissooiations set out below 'liaVe been completed, but many more are under consideration. The cost of tho .transfer to the association and registration thereof is Jjorne by the contingency fund of tho association. V - ' ' „'_ - ASSOCIATIONS FORMED. -The 'following associations ■» have al« ready been formed under the Act : — 1. The Waitohi Downs Land Settlement Association, incorporated by Or-der-in-Comieil on the 23rd March, 1911, consists of -six members, and has taken up 3011 acres near Temuka, the total purchase money being £12,636. 2. The Tainui Land Settlement Association, incorporated by Order-iu-Council on 19th September, 1910, consists of five members, and has taken up 465 acres near Hamilton, tho total pur- _ chasa money being £6520. 3. The Korokipo Land Settlement Association, incorporated by Order-in-Council on 18i?h July, 1910, "consists of seven members, and has taken up 666 acrea near Napier, the total purchase money being £16,617. 4. The Bfi>okland Laud Settlement Association, incorporated by Order-in-Council on 19lh September, 1910, consists of five members, and has taken up ' 400 acres near Temuka, the total purchase money being £9621. 5. The Martha Land Settlement Association, incorporated by Order-in-Council on the 28th March, 1911, consists of eleven members, and has taken up 2696 acres near Waihi, the total purchase money being £11,628. 6. The Melrose Land Settlement Association, incorporated by Order-iu-Council on the Bth February, 1911, consists of five members, exclusive of their families, and has taken up 815 acres near Te Aroha, tho total purchase money being £6319. 7. The Hiluvtaia Land Settlement Association, incorporated by Ord-er-in-Council on tho 31sb November. 1911, consists of seven members, and has taken up 857 acres in the Te Aroha district, the total purchase money being £7820. 8. The Nikau Grange Land Settlement Association, incorpprated on 29th August, 1910, consists of six members, and has uiken up 672 acres near Palmerston North, the total purchase money being- £18,850. 9. The Kcmata South Land Settlement' Association, incorporated on 19th "September. 1910. consists cf five, members, £,nd lias taken up 665 acres near Ptieroa, the total purchase money being £9957. and £400 to be expended on roading money. 10. "flic Eureka Land Settlement Association, incorporated by Order-in-Council on 19th September, 1910, consists of five members,' and has taken, up 'B24 acres near Hamilton, the total 1 purchase nionev being £15,780. 11. The Mcorfield Land Settlement Association incorporated on 11th October, 1910,' consists of six members and 1 has taken up 807 acres near Palmerston, North, the total purchase money being £16,947.