Legal Question in Real Estate Law in New Zealand (Aotearoa)
Change of title of land
Can you advise regarding the sale of houses on cross-lease freehold sections. When extensions have been done to the properties on the sections, permission by co-owners given, building permits through the council have been obtained, yet there is no link between the council and the Land Transfer Office regarding the changing of the title. Why is this so? Why does a surveyor have to be involved to resurvey when all legalities have been followed and abided by. An ordinary freehold section that has alterations done does not have to worry about the title. This seems to be discrimination on a lower incomed owner as extra costs are involved with lawyers, surveyors, Land Transfer office. Can you comment please.
1 Answer from Attorneys
Re: Change of title of land
This is one of the dis-advantages of cross-leasing as opposed to a freehold title. It goes back to the basis of the title which comproses an interest in the freehold together with a lease of the dwelling. This registered leasehold interest necesitates the registered plan at LINZ. Local authorities take no interest in the title plan. Alterations, therefor, can require an amended plan.
This is an issue with all cross-lease properties - some of which are very expensive.