Bona Vacantia or Escheat

In New Zealand, which adopted English land law and the doctrine of tenure, the underlying principle is that the Crown holds the allodial (underlying) title to all land in New Zealand and grants title to land. Where no person can show title to land, that land is deemed to have reverted (passed) back to the Crown, as the original grantor of the land. There are a number of ways and instances where land can pass back to the Crown such as land of a bankrupt, abandoned land for which no owner can be found, land held by a party dying intestate, land of a company or Incorporated Society struck-off and removed.

Bona vacantia is a statutory creation in relation to unowned or unclaimed land where specific actions and powers relating to the administration and operation of such land is derived from statute.

Escheat however, is a doctrine or prerogative right that does not specifically address in any piece of legislation, any rights and powers of the Crown to administer and manage such land. Each process is distinct with different processes and outcomes.

Land passing to the Crown by either process is deemed to be Crown land administered under the provisions of the Land Act 1948 by Land Information New Zealand. However there are opportunities and legal mechanisms for the Crown in instances with bona vacantia land to not formally claim title to such land, so as to enable a party with a proven greater right to such land to prove its title to the land in the appropriate forum or legal avenue.

People should contact LINZ in the first instance for information and advice on this subject.