Property Glossary
Plain-English definitions of property terms every New Zealand buyer should know. Click any term to learn more about why it matters and what to check.
Land & Boundaries
Easement
A legal right allowing someone to use part of another person's land for a specific purpose.
Covenant
A legally binding restriction or obligation attached to a property's title that controls how the land can be used.
Encumbrance
Any registered claim, charge, or restriction on a property's title that may affect the owner's ability to use or transfer the property freely.
Right of Way
A legal right registered on the title that allows someone to pass over another person's land to access their own property or a public road.
Survey Plan
An official plan prepared by a licensed cadastral surveyor that defines the legal boundaries and dimensions of a property.
Flats Plan
A registered diagram showing the building footprints and exclusive-use areas on a cross-lease property.
Boundary
The legal line that defines the edge of a property, as set out on the registered survey plan held by LINZ.
Subdivision
The process of dividing a single piece of land into two or more separate titles, each of which can be independently owned and sold.
Amalgamation
The process of merging two or more separate property titles into a single title, creating one larger parcel of land.
Exclusive Use Area
A specific area of shared land on a cross-lease or unit title property that is designated for the sole use of one owner.
Common Property
The shared areas of a unit title or cross-lease property that all owners have the right to use and are collectively responsible for maintaining.
Unit Plan
The official survey plan registered with LINZ that defines individual units, common property, and accessory units in a unit title development.
Council & Regulatory
LIM Report
A Land Information Memorandum — an official council report summarising everything the council knows about a property.
Code Compliance Certificate (CCC)
An official council certificate confirming that completed building work meets the requirements of the building consent and the Building Code.
Resource Consent
Permission from the local council to carry out an activity that affects the environment, required under the Resource Management Act 1991.
Project Information Memorandum (PIM)
An official council report that outlines the building requirements, restrictions, and relevant information for a specific site before you start a building project.
Building Consent
Official council approval required before you can carry out most building work in New Zealand.
Zoning
Council rules that classify land into zones and control what activities and types of buildings are allowed in each area.
District Plan
The local council's rulebook that sets out how land in the district can be used, developed, and subdivided.
Regional Plan
A regional council's rules for managing natural resources including water, air, soil, and the coastal environment.
Unitary Plan
Auckland's combined planning document that merges the functions of a district plan and regional plan into a single set of rules for all land and resource use.
Permitted Activity
An activity that is allowed under the district or regional plan without needing resource consent, provided it meets all the specified standards.
Controlled Activity
An activity that requires resource consent from council, but where council must grant the consent — it can only impose conditions on specific matters it has reserved control over.
Restricted Discretionary Activity
An activity that requires resource consent, where the council can approve or decline but may only consider a limited set of matters specified in the plan.
Discretionary Activity
An activity that requires resource consent and where the council has full discretion to approve or decline based on any relevant consideration.
Non-Complying Activity
An activity that doesn't comply with the district or regional plan, requiring resource consent with a high threshold for approval.
Designation
A provision in the district plan that reserves land for a public work or infrastructure project by a requiring authority such as a council or government agency.
Heritage Listing
A council classification that identifies and protects buildings, structures, or places of historic, cultural, or architectural significance.
Notable Tree
A tree that has been identified by the council as having special ecological, amenity, cultural, or historical value and is protected under the district plan.
Special Housing Area
An area formerly designated under the Housing Accords and Special Housing Areas Act 2013 (now repealed) where resource consent for qualifying housing developments was fast-tracked.
Medium Density Residential Standards (MDRS)
National building standards that enable up to three homes of up to three storeys on most residential sites in New Zealand's major urban areas.
Title & Ownership
Cross-Lease
A form of property ownership where multiple owners share the freehold of a single piece of land and lease their individual dwellings from each other.
Unit Title
A form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Freehold
The most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Leasehold
A form of property ownership where you own the buildings but lease the land from a separate landowner for a set period.
Fee Simple
The legal term for freehold ownership — the most complete form of property ownership available in New Zealand.
Joint Tenancy
A form of co-ownership where two or more people own a property together with equal shares, and if one owner dies, their share automatically passes to the surviving owner(s).
Tenancy in Common
A form of co-ownership where two or more people own a property in defined shares that can be equal or unequal, and each owner's share passes through their will when they die.
Certificate of Title
The official legal document registered with LINZ that proves who owns a property and records all registered interests affecting it.
Torrens System
New Zealand's land registration system where the government guarantees the accuracy of the title register, meaning the person on the title is the legal owner.
Māori Freehold Land
Land held by Māori owners under Te Ture Whenua Māori Act 1993, with ownership determined by the Māori Land Court rather than the standard LINZ system.
Life Estate
A legal interest in property that gives someone the right to live in or use a property for the remainder of their lifetime, after which it passes to a designated person.
Company Share
A form of property ownership where you buy shares in a company that owns the building, with the shares entitling you to occupy a specific unit or apartment.
Legal & Transactional
Body Corporate
The legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Settlement
The day ownership of a property officially transfers from the seller to the buyer and the purchase price is paid in full.
Caveat
A legal notice registered on a property's certificate of title warning that someone claims an interest in the property.
Sale and Purchase Agreement
The legally binding contract between buyer and seller that sets out all the terms and conditions for a property transaction in New Zealand.
Due Diligence Clause
A condition in the sale and purchase agreement that gives the buyer a set period to investigate the property and withdraw for any reason.
Unconditional
The status of a sale and purchase agreement once all conditions have been satisfied or waived, making both parties legally committed to the transaction.
Conditional Offer
An offer to buy a property that includes one or more conditions that must be met before the buyer is legally committed to the purchase.
Chattels
Moveable items included in the sale of a property, such as curtains, light fittings, appliances, and garden sheds.
Fixtures
Items permanently attached to the property that automatically transfer with the land and buildings when the property is sold.
Title Insurance
An insurance policy that protects the property owner or lender against financial loss arising from defects in the property's title or other covered risks.
Mortgage
A loan from a bank or lender secured against the property, giving the lender the right to sell the property if the borrower defaults on repayments.
Registered Interest
Any right or claim recorded on the property's certificate of title, such as a mortgage, easement, covenant, or caveat.
Lien
A legal claim registered against a property as security for an unpaid debt, preventing the property from being sold or transferred until the debt is settled.
Relationship Property
Property that is subject to equal sharing between partners under New Zealand's Property (Relationships) Act 1976 (PRA) when a relationship ends.
Brightline Test
A New Zealand tax rule that requires income tax to be paid on any profit made from selling residential property within a set period after purchase.
Latest Practicable Valuation (LPV)
The council's most recent rateable valuation of a property, used to calculate rates and provide a general indication of property value.
Requisitions
Formal written questions sent by the buyer's lawyer to the seller's lawyer about the property title, the agreement, or other matters before settlement.
Sunset Clause
A clause in an off-the-plan or new-build contract that sets a deadline by which the development must be completed, allowing either party to cancel if the deadline is not met.
Cross-Lease Consent
Formal agreement from all co-owners on a cross-lease title required before making changes that affect the building footprint or shared areas.
Hazards & Environment
Flood Zone
An area identified by the local council or regional authority as being at risk of flooding, based on historical data and modelling.
Liquefaction
A phenomenon where saturated, loose soil loses its strength during an earthquake and behaves like a liquid, causing the ground to shift, sink, or eject sand and water.
Fault Line
A geological fracture in the earth's crust where two tectonic plates or rock masses meet, and where earthquakes are most likely to occur.
Coastal Erosion
The gradual loss of land along the coastline caused by wave action, tidal currents, weathering, and rising sea levels.
HAIL Site
A property listed on the Hazardous Activities and Industries List — a register of land where activities that could cause contamination have taken or are taking place.
Contaminated Land
Land that contains hazardous substances at concentrations that pose a risk to human health or the environment.
Overland Flow Path
The natural or engineered route that stormwater follows over land during heavy rainfall when drainage systems are overwhelmed.
Tsunami Zone
An area identified as being at risk of inundation from a tsunami — a series of ocean waves caused by large-scale undersea disturbances such as earthquakes.
Land Instability
The risk of ground movement including landslides, slope failure, subsidence, and land slippage that can damage buildings and infrastructure.
Asbestos
A group of naturally occurring fibrous minerals once widely used in New Zealand building materials, now known to cause serious lung diseases and cancer when fibres are inhaled.
Methamphetamine Contamination
Residual chemical contamination in a property where methamphetamine (P) has been manufactured or heavily used, potentially posing health risks to occupants.
Erosion-Prone Land
Land identified as susceptible to erosion from wind, water, or other natural processes, potentially affecting the stability and usability of a property.
Building & Construction
Weathertightness
A building's ability to prevent water from entering the structure through its exterior envelope — the roof, walls, windows, and other external elements.
Leaky Building
A building that suffers from moisture ingress through its exterior envelope, leading to hidden rot and structural damage — a widespread problem in New Zealand known as the leaky building crisis.
Building Warrant of Fitness (BWOF)
An annual certificate confirming that a commercial or multi-unit building's safety systems have been inspected and are performing to the required standard.
Earthquake-Prone Building
A building assessed as having structural performance below 34% of the New Building Standard (NBS) for earthquake resistance, making it legally earthquake-prone under the Building Act 2004.
New Building Standard (NBS)
A percentage rating that expresses an existing building's earthquake strength relative to the minimum standard required for a new building — 100% NBS means the building meets the current code for a new build.
Building Code
The New Zealand Building Code — a set of minimum performance standards that all building work must meet, covering structure, fire safety, moisture, energy efficiency, and accessibility.
Specified System
A safety system in a building — such as fire alarms, sprinklers, lifts, or ventilation — that is required to be regularly inspected and maintained under the Building Act 2004.
Compliance Schedule
An official council document listing all specified systems in a building and the inspection, testing, and maintenance requirements for each system.
Certificate of Acceptance
A retrospective approval issued by the council for building work that was done without a building consent, or where the building consent has lapsed.
Producer Statement
A written statement from a suitably qualified professional confirming that specific building work or design complies with the Building Code.
Monolithic Cladding
A type of exterior wall cladding that presents a seamless, plaster-like finish with no visible joints — strongly associated with New Zealand's leaky building crisis.
Remediation
The process of repairing, restoring, or cleaning up a building or land to fix defects, remove contamination, or bring it to a safe and compliant standard.
Financial
Rates
Annual property taxes charged by your local council to fund public services, infrastructure, and local government operations.
Body Corporate Levies
Regular payments made by all unit title owners to fund the maintenance and management of shared property in a multi-unit development.
Ground Rent
Regular payments made by leasehold property owners to the landowner for the right to use the land their property sits on.
Development Contribution
A charge levied by the local council on new developments to help fund the infrastructure needed to support growth, such as roads, water, and reserves.
Capital Value (CV)
The council's assessed total value of a property, including both the land and all buildings or improvements, used primarily for calculating rates.
Land Value
The council's assessed value of the bare land only, excluding any buildings or improvements, used as part of the rating valuation.
Improvement Value
The council's assessed value of the buildings and other improvements on a property, calculated as the difference between capital value and land value.
Deposit
An upfront payment made by the buyer when purchasing a property, typically 20% of the purchase price, held in trust until settlement.
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