Imagine you want to buy land in New Zealand, but the law says you need special permission first. Instead of following the rules, you set up a company structure that makes it look like a New Zealand buyer is purchasing the land. Sounds clever? Not according to the law. This case shows why getting professional advice matters — and why lawyers are expected to understand the rules before helping clients buy property.
An Auckland lawyer has been found negligent after helping overseas buyers acquire New Zealand forestry land without the required investment approvals. Andrew Jarvis set up company structures that made the purchases appear to comply with the rules, but the arrangements breached the Overseas Investment Act. The case highlights an important point: New Zealand has rules about who can buy certain types of land, and trying to work around them can have serious consequences. It is also a reminder that lawyers must understand the laws relevant to their work. Jarvis had already been ordered to pay $275,000 in penalties in the High Court, while the disciplinary tribunal’s separate penalty decision was still to come.
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