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The Pamphlet Collection of Sir Robert Stout: Volume 66

Acquirement of Freehold on Deferred Payments

Acquirement of Freehold on Deferred Payments.

The principal features of the deferred-payment system are—
(1.)If suburban land, an allotment must not exceed 20 acres; if rural agricultural land, 320 acres.
(2.)A selector of village or suburban land may make a subsequent selection of rural land, provided the total area does not exceed 320 acres, and any person who has for two yean fulfilled all the conditions under which he took up his section can acquire further sections, provided he does not become the selector in the whole of more than 320 acres.
(3.)The price per acre of suburban land is £4 10s.; of rural land not less than £1; except in Auckland, Hawke's Bay, and Nelson, where the price may be less.
(4.)Suburban and rural lands are open for application, but if two or more persons apply for the same allotment it is put up to public tender, and in the event of two or more tenders being of the same amount the successful tenderer is decided by lot.

The deferred payments are made in equal instalments in advance, every six months.

For suburban land the period for payment is five years : therefore there are ten instalments.

For rural land the period for payment is ten years, making twenty instalments: thus, if land offered at £1 per acre was applied for by A and B, and went to auction, and A closed the bids at £1 10s. per acre, he would have 1s. 6d. per acre to pay every six months for ten years.

Any selector who has complied with the conditions of his purchase for a period of one year may have the value of the unpaid instalments page 81 capitalized at the value of an annuity of the same amount and for the same period. Interest is payable at 5 per cent, per annum, instead of the half-yearly instalments. After the capitalized value is ascertained, he may pay off the whole sum, or any portion, in sums of not less than £10. At any time within fourteen years of the date of his license the selector is entitled to a Crown grant, if he has paid the whole of the capital value, together with interest; or he may exchange the deferred-payment license for a perpetual lease, in which case all past payments go to credit of rent.

On suburban land residence must begin within six months of issue of license, and continue for four years; and on rural land the period of residence required is six years.

Where land is wholly or mostly covered with bush, residence may be dispensed with altogether.

Improvement Conditions under the Deferred-Payment System.

Suburban.—Must bring into cultivation not less than a tenth of the allotment the first year, one fifth the second year, and within four years must have three-fourths cultivated, the whole fenced, and have made substantial improvements to the value of at least £10 per acre.

Rural.—If open land, one-twentieth must be brought into cultivation the first year, one-tenth the second year, and within six years one-fifth must be cultivated and permanent improvements effected to the value of £1 per acre.

The purchaser of rural land may, at any time after the first six years, pay the balance of the purchase-money if he has effected the improvements. He is then entitled to the Crown grant of the land.

The term "substantial improvements of a permanent character" includes reclamation from swamps, clearing bush or scrub, cultivation, planting with trees or hedges, laying out gardens, fencing, draining, making roads, sinking wells or water-tanks, constructing water-races, in any way improving the character or fertility of the soil, or the erection of any building. This definition applies to all classes of land where improvements are required as part of the contract.