Cook Islands Launches Consultation On Unit Titles Bill

by Mary Swire, for LawAndTax-News.com, Hong Kong

29 August 2005

The controversial Cook Islands Unit Titles Bill will allow investors to hold title to portions of a building without owning the lease of the land that it sits on. Originally drafted to assist just one project, the amended bill will cover any project.

Previous similar projects aimed at international investors have been dealt with on a one-off basis. The extension of the new bill to make it general has excited opposition from conservationists and local residents who fear for their scarce land resources.

The original bill was drafted to apply to land at Vaimaanga in Rarotonga and Ootu in Aitutaki earmarked by hotel developer Tim Tepaki.

The revised bill, which the government says guarantees the protection of landowners has now been sent out for consultation. Led by justice minister Tupou Faireka, the parliamentary drafting committee held its first public consultation on the revised bill on Thursday night.

Crown law counsel Catherine Wi Kaitaia, who guided and facilitated the committee during public submissions, explained the revised bill, saying that the committee has inserted a clause that clearly defines that any plan must also be approved by the Lease Approval Tribunal. No plans can be approved or changed without the approval of the tribunal.

The committee has also inserted certain provisions of the Cook Islands Act 1915 in various clauses in the revised bill - a right of forfeiture, re-entry and distress have been included . There is protection for the lessee and sub-lessees as well, through relief in the court.

The main provisions from the Cook Islands Act 1915 and other laws pertaining to land in the Cook Islands, that have been included in the revised bill include:

  • Section 409B of the Cook Islands Act 1915;
  • Part XVI of the Cook Islands Act 1915 - relating to alienation of land;
  • Section 446 - relating to succession rights (mono);
  • Section 106A of the Property Law Amendment Act 1995-96;
  • Sections 28A and 28B, and Sections 118 and 119 of the Property Law Act 1952 - relating to rights to forfeiture etc;
  • Section 455 of the Cook Islands Act 1915;
  • National Building code - section 4 of the Building Controls and Standards Act 1991;

The bill is expected to be tabled in parliament in September.

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