The land agent negotiating the purchase of Southland farms using Dubai funding remains adamant the deal does not require Overseas Investment Office approval.
John Wright, of LJ Hooker, in Invercargill, said he sought a legal opinion on that point before farms were signed up.
He was informed Overseas Investment Office (OIO) approval was not needed as it would implicate every overseas-based lender of money used to fund the buying of New Zealand land.
"It comes down to what appears on the title," he said.
Under the deal a Maori hapu would buy the land with money provided by Dubai interests.
An OIO spokesman reiterated comments reported in the Otago Daily Times yesterday that on the information it had, the deal needed its approval, a process which could take three months.
Under the Overseas Investment Act 2005, consent was required if an overseas person or an associate acquired an interest in sensitive New Zealand land, whether that interest was freehold, a lease or any other interest.
OIO manager Annelies McClure said a definition of "any other interest" included an interest in land secured by a mortgage.
She said by buying the freehold interest in land, the hapu was likely to be an associate of the Dubai funders, so consent was required for both types of transactions under the Act.
Mr Wright said he was crosschecking the deal with all the authorities concerned.
