Property guidance by Quay Law
Property guidance by Quay Law
Unit title guidance from Quay Law
Ian Mellett, Barrister and Solicitor, Quay Law
The type of title you buy determines what you own, what you share, what you can change and what obligations come with ownership. Two properties that look similar from the street can be held under very different titles.
New Zealand residential property is most commonly held under one of four arrangements: freehold, unit title, cross lease or leasehold. Some properties combine features, such as a unit title held on leasehold land.
Freehold, also known as fee simple, is the most complete form of ownership. You own the land and the buildings on it, subject to any interests registered against the title. You make your own decisions about maintenance and alterations, within the rules set by council and any covenants.
A unit title gives you ownership of a defined unit, together with a share in the common property through the body corporate. You are bound by the body corporate rules and contribute to shared costs through levies. Unit titles are governed by the Unit Titles Act 2010 and carry a statutory disclosure regime.
Under a cross lease, the owners together own the land in undivided shares, and each leases their own dwelling from the others. The flats plan shows each dwelling. There is no body corporate, and alterations to a dwelling generally require the consent of the other owners and an updated flats plan.
With leasehold property, the land is owned by someone else and leased to you for a term, usually with periodic ground rent reviews. You own the buildings, or your unit, for the term of the lease. Ground rent reviews can significantly affect the cost of ownership and the value of the property.
Title type affects your due diligence, your lending, your ongoing costs and your ability to make changes. We recommend confirming the title type, and reading the title itself, before making any offer.
How unit title and freehold ownership differ in New Zealand, including control, costs, maintenance and due diligence, explained by Quay Law.
How unit titles and cross leases differ in New Zealand, including structure, alterations and shared costs, explained by Quay Law Auckland.
How leasehold property differs from a unit title, how ground rent works, and what to check when buying a leasehold unit title in Auckland.
A plain English guide to unit titles in New Zealand: principal and accessory units, common property, the unit plan and the body corporate.
If you are unsure what type of title a property has, or what it means for you, we can review the title and explain it before you commit.
If you are buying or selling a unit title property in Auckland, we recommend speaking with us before you sign an agreement. Contact Ian Mellett at Quay Law, Barrister and Solicitor, by completing our enquiry form below, or call us on 09 523 2408.
The information on this page is provided for general information purposes only and is not legal advice. Every transaction is different, and all matters should be discussed with the team at Quay Law.