Titles, cross-leases and unit titles

What it is

Every property has a record of title held by LINZ. It shows the owner, the legal description, the estate (fee simple, cross-lease, unit title or leasehold) and every registered interest: easements for drainage or access, covenants that restrict what you can build, encumbrances that attach charges, and mortgages. A guaranteed search gives us the current version.

Why it matters

A cross-lease is a shared title where you own a share of the land and lease your flat from the other owners. If the house has been altered since the flats plan was drawn, the title is defective and the bank may not lend. A unit title brings a body corporate, levies, operational rules and a disclosure regime. Easements and covenants can stop the extension you were planning. None of this is obvious from the open home.

How we handle it

We review every interest on the title and explain it in plain English with a colour-coded plan, so you can see which parts of the land are yours alone. For cross-leases we compare the flats plan to the building and the aerial photo. For unit titles we read the pre-contract disclosure, the body corporate minutes and the long-term maintenance plan. If the title needs fixing, we tell you what it will cost and who pays.

Common traps

• A cross-lease flats plan that does not show the conservatory, deck or carport that exists today.
• A covenant limiting the property to one dwelling when you planned a minor dwelling.
• An encumbrance that adds an annual charge for infrastructure.
• A unit title with a looming special levy that the vendor did not mention.