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Access to land in Tonga is by way of leasing: it is illegal to buy and sell land. All land in the country is organised into estates belonging to the King and his nobles, or the government. Individual titles to land within these estates are also held by Tongan born males over the age of 16 who have been successful in registering the land.
photo: http://www.lands.gov.to
Any person, regardless of their gender or nationality, can lease land in Tonga from an estate owner or a Tongan male who has registered title to an allotment of estate land. A land lease can either be an informal arrangement between the estate owner/registered title-holder and the lessee, or a formal arrangement that must be processed by the Ministry of Lands.
Under formal lease arrangements, land that has been leased can also be sub-leased to another party. The process to sub-lease land is the same the process to lease land. There is also a small amount of land available to investors within two Small Industry Centres (SIC) located on Tongatapu and Va’vau. The SICs are managed by the Ministry of Labour, Commerce and Industry. The procedures for leasing SIC land are different to the process used to obtain a formal land lease (see section on ‘Industrial infrastructure’ ).
A summary of the steps involved in formally leasing land are outlined below:
Identification of potential land
The Ministry of Land, Survey and Natural Resources (MLSNR) can assist in identifying vacant plots and other areas available for leasing. At the request of the investor, the Ministry will consult with registered land title-holders to confirm the availability of land for lease, and can facilitate an introduction.
Negotiation of lease terms and conditions
Negotiation of the terms and conditions of the lease is a private matter between the registered landholder (lessor, represented by the King ) and the investor (lessee). In the case of government land, the Valuation Division, MLSNR is required to value the land.
The Land Act allows for a lease term up to a maximum of 99 years, although they are typically not granted for more than 50 years. Lease rates are not guided by legislation, but it standard practice for the lessor and lessee to review the lease rate at regular intervals, i.e. every 5 years.
Preparation and submission of application to register a lease
Once the terms and conditions of the lease have been agreed on, the two parties obtain an application form (L-9) from the Ministry, or in the case of Vav’au and Haa’pai at the Governor’s office. MLSNR or the Governor’s office calculates the fee for conducting a survey and preparing a map of the property. Fees are stipulated in Schedule IV of the Land Act and are payable to MLSNR or the Governor’s office at the time the application is submitted.
Application assessment
On Tongatapu, the Valuation Division, MLSNR assesses the application. On Vav’au and Haa’pai staff at the Governor’s office completes this task. If the criteria are met the application is submitted to the Minister of Lands in Nuku’alofa for signature. If approved by the Minister, the application is submitted to Cabinet for signature.
Notification of decision
If the application fails to meet any of the above criteria MLSNR will notify the applicant of the problem. It is the applicant’s responsibility to consult the landowner and resolve any outstanding issues. Once the application has been signed by Cabinet, MLSNR will notify the applicant (lessee) of the approval and initiate the surveying and mapping of the property.
Survey and preparation of Deed of Lease & map of property
The approved application is forwarded to the Mapping & Drafting Division, MLSNR who prepare a sketch plan of the property based on MLSNR records. The sketch plan is then forwarded to the Survey Division, MLSNR who conduct a field survey of the property. The results of the survey are then sent back to the Mapping & Drafting Division for preparation of the Deed of Lease and map of the property.
The survey can be done by a private surveyor rather than MLSNR. MLSNR contacts the applicant (investor) once the Deed of Lease and map have been completed. The applicant is required to pay MLSNR a registration fee to obtain the Deed of Lease and map. The Deed of Lease requires the lessee to submit a letter to the Minister of Lands seeking permission to make any changes to the stated purpose, period or rate. Written permission must also be obtained from the Ministry of Lands for any buildings or structures constructed on the property.
Relevant contacts & links:
www.lands.gov.to
