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Unit title guidance from Quay Law

Understanding Unit Titles in New Zealand

Ian Mellett, Barrister and Solicitor, Quay Law

A unit title is a form of property ownership that allows land and buildings to be divided into separately owned units, with the remaining areas owned collectively. It is the standard form of title for apartments in New Zealand and is common for townhouses, terraced housing and commercial complexes.

What a Unit Title Is

Unit titles are created under the Unit Titles Act 2010. A unit title development is formed when a unit plan is deposited with LINZ. The plan divides the land and buildings into units and common property.

The legal title you hold in a unit is a different estate from the title to the underlying land. You own your unit, and through the body corporate you share in the ownership of the common property with every other owner.

The Key Parts of a Unit Title Development

  • Principal units are the main units, used as homes, offices, shops or for other purposes.
  • Accessory units are designed for use with a principal unit, such as a car park, garage or storage locker.
  • Common property is the remainder of the land and buildings, for the use of all owners.
  • The unit plan shows the boundaries of each unit and the common property.
  • The body corporate is made up of all the unit owners and manages the development.

How a Unit Title Is Recorded

Each principal unit has its own record of title. The title describes the unit and any accessory units, and records any interests registered against them. Information relating to the development as a whole, including the body corporate’s operational rules, is recorded on a supplementary record sheet.

When you buy a unit title, your lawyer searches both the title to your unit and the information relating to the development.

Types of Unit Title Property

Unit titles are used for:

  • Apartment buildings of every size.
  • Townhouse and terraced house developments.
  • Mixed use buildings combining shops or offices with apartments.
  • Commercial and industrial complexes.

Not every multi unit property is a unit title. Some apartment buildings and many older blocks of flats are held under cross leases, company shares or freehold titles with a residents’ society. The title type should always be confirmed before an offer is made.

Guides to Unit Title Ownership

Our guides explain each element in more detail:

  • Unit plans, principal units and accessory units.
  • Common property and exclusive use areas.
  • Ownership interest and utility interest.
  • Layered developments and subsidiary bodies corporate.

Related guides

How to read a unit plan, the difference between principal and accessory units, and why boundaries matter when you buy an apartment or townhouse.

What counts as common property in a unit title development, who pays for it, how exclusive use areas work and what buyers should confirm.

How ownership interest and utility interest affect body corporate levies, voting and costs in a New Zealand unit title development.

How layered unit title developments and subsidiary bodies corporate work, how costs and governance are shared, and what buyers should check.

A plain comparison of freehold, unit title, cross lease and leasehold property in New Zealand, and why the title type matters before you make an offer.

Speak with Quay Law

If you are unsure what you would be buying, we can review the title and unit plan and explain it in plain terms.

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.

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    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.