(1)  This Part binds the Crown as provided in this section.

(2)  Land may not be disposed of by or on behalf of the Crown unless, if the disposition were that of a private person –

(a) it would not require an approval of a plan under this Part; or

(b) if it does require such an approval, it is in accordance with a plan which ought reasonably to be approved.

(3)  Any town land under section 5 of the Crown Lands Act 1976 may not be disposed of unless the Director-General of Lands is of opinion –

(a) that the disposition is in accordance with a plan that if it were the subdivision of a private person it ought reasonably to be approved under this Part; or

(b) that in the case of a disposition in accordance with a plan prepared before the commencement of this Part, so much of the land in it has already been disposed of that it is unreasonable to alter the plan.