Land Valuation Act 2010

A bona fide sale, for land, is its sale on reasonable terms and conditions that a bona fide seller and buyer would require assuming the following (the bona fide sale tests)—

a willing, but not anxious, buyer and seller;

a reasonable period within which to negotiate the sale;

that the property was reasonably exposed to the market.

For subsection (1), in considering whether terms and conditions are reasonable, regard must be had to—

the land’s location and nature; and

the state of the market for land of the same type.

To remove any doubt, it is declared that if—

there is a sale of the land in question; and

the bona fide sale tests are complied with; and

the terms and conditions of the sale are reasonable having regard to the matters mentioned in subsection (2)(a) and (b);

the sale is a bona fide sale.

In this section—

land in question means land whose value is being decided.