Overseas Investment Act 2005

If you need more information about this Act, please contact the administering agency: The Treasury
4 Dwellings in large apartment developments that are purchased off plans


This clause applies in respect of land that is being used, or intended to be used, for 1 (or more) of the following (a development):


in the construction of 1 or more multi-storey buildings as 1 development, where each building consists, or will consist, of at least 20 residential dwellings; or


to increase the number of residential dwellings in 1 or more multi-storey buildings, where the number of residential dwellings in each building will be increased by 20 or more.

Exemption certificates


A person involved in the development (the developer) may apply for an exemption certificate if regulations are in force under section 61(1)(jb).


The relevant Minister or Ministers may grant an exemption certificate if they are satisfied that the development is likely to be completed, having regard to factors such as—


whether the development has appropriate resource consent, building consent, and any other relevant authorisations; and


the developer’s financial strength; and


the previous activity of the developer (or its associates or individuals with control) regarding use of residential land; and


the previous record of the developer (or its associates or individuals with control) in complying with consent conditions or applying for consent conditions to be varied.


An exemption certificate may be applied to up to the maximum percentage, as prescribed in the regulations made under section 61(1)(jb), of the residential dwellings in the development.

Exemptions for dwellings to which exemption certificate applies


A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land in respect of a residential dwelling in the development if—


the relevant land is residential (but not otherwise sensitive) land; and


an exemption certificate applies to the dwelling under subclause (4); and


the person (the purchaser) makes the investment before the construction of the dwelling is complete.


OP1 buys off the plans an apartment to which an exemption certificate applies, using the exemption in subclause (5). So the on-sale outcome does not apply to OP1 (but see subclause (6)(b) for the non-occupation outcome).

OP2 later buys a different apartment to which the exemption certificate does not apply. OP2 must apply for consent (but see section 16(3)(b) for an exemption from the investor test if OP2 applies for consent under the increased housing test.) OP2 must comply with the conditions of that consent as to the on-sale outcome and the non-occupation outcome.

Other provisions


The relevant Ministers may grant an exemption certificate subject to the conditions that they think appropriate, and must impose conditions as follows:


conditions that enable the regulator to identify and monitor the dwellings to which the certificate is applied; and


conditions that impose the non-occupation outcome on purchasers who rely on the exemption certificate under subclause (5); and


conditions that enable the non-occupation outcome to be monitored by the regulator.


Those conditions may be conditions—


that apply to either the developer (as a condition of the exemption certificate) or the purchaser (as a condition of the exemption in subclause (5)), or both; and


that require both the developer and the purchaser to provide the regulator with the name, contact details, and other details of dwellings to which the certificate is applied and the purchasers of those dwellings.