Wellington Lawyers: Understanding Property Titles in Masterton and Wellington: Types and Obligations

WELLINGTON, New Zealand - Jan. 24, 2025 - PRLog -- When buying or selling property in Masterton or Wellington, understanding the different types of property titles is crucial. Each type of title comes with unique rights, restrictions, and obligations that could impact your property ownership experience. Here's a guide to the most common property titles in New Zealand:

Fee Simple (Freehold)

The fee simple title is the most straightforward and common type of property ownership. The owner has full ownership of the land and any improvements (e.g., buildings) on it. This type of ownership grants unrestricted rights to use, mortgage, sell, or gift the property, subject to any registered land covenants or easements. Most stand-alone residential properties are on fee simple titles, making it the preferred choice for those seeking maximum control over their property.

Cross Lease

A cross lease title involves shared ownership of the underlying land (fee simple) with other owners, while each owner leases their unit (flat) from the collective owners, usually for 999 years. The title includes a flats plan showing exclusive-use areas and common areas.
Cross lease properties often come with restrictions:

• Any structural changes or renovations may require the consent of all other flat owners.
• Updating the flats plan can be costly and may involve legal and surveyor fees.
• Legal fees for obtaining neighbor consent are typically borne by the lessee making alterations.

Unit Title

Unit titles are common for apartments and townhouses. Ownership includes a specific unit and a share in common areas (e.g., hallways or lifts) managed by a Body Corporate. Owners have voting rights through an "ownership interest," previously known as a "unit entitlement." Obligations include:

• Adhering to Body Corporate rules.
• Complying with disclosure requirements for vendors during property transactions.

Leasehold

In leasehold ownership, you lease the land from another party and pay an annual ground lease fee. Lease terms are usually long-term, but owners don't own the land outright, making this a less common choice.

Company Share

While not technically a title, company share ownership is a structure where the land and buildings are owned by a company. Owners hold shares in the company and receive an occupation license. In many cases, new owners require approval from the company's directors to join.

Key Considerations

Each type of title comes with potential challenges and obligations. Renovations, alterations, and even resale may involve unexpected costs or restrictions depending on the title type.

To avoid stress and financial surprises, it's highly recommended to seek legal advice when buying, selling, or renovating a property. Expert property lawyers in Masterton and Wellington can help you navigate title complexities, ensuring you understand your rights and obligations. https://www.corelegal.co.nz