Part X of the Land Act 1996 is divided into ten Divisions. Division 1 states the general rules for all State leases; Division 2 deals with improvements; Divisions 3 to 10 create the eight lease types.
The eight types at a glance
| Lease | Division / section | Maximum term | Distinguishing feature |
|---|---|---|---|
| Agricultural | Div 3, s 87 | 99 years | Must contain conditions prescribing minimum improvements (s 88) |
| Pastoral | Div 4, s 89 | 99 years | Must contain minimum stocking conditions (s 90) |
| Business and/or residence | Div 5, ss 92–95 | 99 years | May specify the class of business; land in a physical planning area must first be offered by tender |
| Mission | Div 6, ss 96–98 | 99 years | To a Christian mission body; no rent payable (s 98) |
| Government-owned buildings | Div 7, s 99 | By agreement; may be weekly, fortnightly, monthly or quarterly | Most of the Act — and the Land Registration Act — do not apply |
| Special purposes | Div 8, ss 100–101 | 99 years | Residual category; royalties may be imposed instead of or as well as rent |
| Special agricultural and business (SABL) | Div 9, s 102 | Set by the head lease | Granted over customary land acquired under s 11 lease-leaseback |
| Urban development | Div 10 | Shorter; development-driven | For subdividing and developing urban land, converting to further leases |
What they all share
Whatever the type, the Division 1 rules apply. A State lease:
- is granted by the Minister (s 65), normally on a Land Board recommendation;
- must not be granted for a purpose contravening zoning or physical planning requirements (s 67);
- where the land is customary land leased to the State, must not be inconsistent with the head lease from the customary landowners — and any inconsistent provision is of no effect (s 66);
- contains implied reservations of all minerals and all petroleum to the State, with rights of entry (s 82(3)); and
- has its term, improvement time and rent calculated from the date of gazettal of the successful applicant (s 81).
The odd one out — leases of government-owned buildings
A lease of Government land on which there is a building the property of the State is granted by written agreement, and sections 49, 68 to 76, 82, 83 and 122 do not apply. More strikingly:
- section 99(6) — the Act, other than section 99 and section 145, does not apply to such a lease; instead the ordinary law applying to a lease of fee simple land applies as if the land were held by the State for an estate in fee simple; and
- section 99(7) — the Land Registration Act does not apply to leases granted under section 99.
So there is no certificate of title and no indefeasibility. If you are taking a tenancy in a government building, you are in ordinary landlord-and-tenant territory, not Torrens territory.
Special purposes — the residual lease
Section 100 is the catch-all: where the Minister thinks a grant under any other Division would not be appropriate or would not be possible, he may grant a special purposes lease. Two limits and two features:
- it cannot be granted for private residence purposes within a physical planning area (s 100(2));
- land within a physical planning area must first be offered by tender (s 101), subject to the section 69 exemptions;
- rent is such (if any) as seems to the Minister proper, and royalties may be imposed in addition to or in place of rent on any substance or thing recovered from the land (s 100(5)); and
- the Minister may re-appraise rent, impose rent where none was specified, or vary or impose royalty at the times and on the basis specified in the lease (s 100(6)).
Sections 83 and 84 — the general rent provisions — do not apply to a special purposes lease.
Which lease do you need?
- Farming or plantation crops — agricultural lease (mind the minimum improvement conditions).
- Cattle or other grazing — pastoral lease (mind the minimum stocking conditions).
- A shop, office, workshop or a house in town — business and/or residence lease.
- A church, mission school, mission hospital or mission airstrip — mission lease, rent free.
- A tenancy in an existing government building — a section 99 lease, outside the registration system.
- Something that fits none of the above — special purposes lease.
- A project on customary land — SABL, via lease-leaseback.
- Subdividing and developing urban land — urban development lease.
Sources
- Land Act 1996 — ss 11, 65–67, 81–84, 87–102, 145; Part X
- Land Registration Act (Chapter 191)
- Church of Jesus Christ of Latter-Day Saints Inc v Kimas [2022] PGSC 96; SC2280
The Physical Planning Act 1989, which defines physical planning areas, is not carried in the PacLII databases, so no direct link is given here rather than an unverified one.
Before relying on anything here, read the current text of the Land Act 1996 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.