Licence to Occupy: Empowering whānau to live on their Whenua

A licence to occupy (LTO) is a quick and efficient option for Māori landowners who wish to live on their whenua.  A LTO grants a personal right of occupation to the licence holder and is a unique form of Māori land tenure that can be utilised to help owners with occupation of their whenua.

What is a Licence to Occupy?

A LTO is an agreement that allows a person or whānau to live on or use a defined area of Māori freehold land under agreed terms.

If the land is under a trust or Māori incorporation, the trustees or committee of management decide who may occupy it.  Their duty is to act for the collective benefit of all owners, so any grant of occupation must align with that purpose.

If there is no trust or Māori incorporation over your land, you will need to seek the permission of all the owners.  That approval, often confirmed at a hui of owners, should be recorded in writing.  Transparent decision-making and proper documentation protect both the occupier and the governance body.

No application to the Māori Land Court is required, however, the Court must be notified when the licence term is 21 years or more, or if a variation or transfer involves such a term.  If the total period goes beyond 52 years, it becomes a long-term licence and that’s when formal approval from the Court is required.

Key Tips

To ensure there are clear guidelines in place for your LTO, we recommend that your LTO agreement includes the following:

• A clear description of the area you intend to occupy
• Rules for the occupation include:
  • Maintenance terms
  • What activities can occur within the occupation area?
  • Any fencing or access matters
  • Any rent fee or payment of rates
  • The duration or term of the LTO
  • What happens when the LTO comes to an end?
• Provision for immediate family members to be included in the occupation terms
• A clause for resolving disagreements or issues arising from the LTO
• Building conditions, including any permission required from your local council

If you are building on the whenua, we also recommend you consider obtaining an order from the Māori Land Court to confirm your ownership of any building.  This ensures that ownership of the building is clear and can protects you and your whānau in the future.

Whether you are seeking occupation or are a trust or legal entity considering occupation our Kahurangi Whenua Team are available to assist.