Property Comparisons
Side-by-side comparisons of New Zealand property terms, documents, and processes. Know the differences before you commit.
Title Types
Cross-Lease vs Freehold
Freehold gives you full ownership of land and buildings with no co-owner dependencies. Cross-lease means shared land ownership with restrictions on changes — typically 5-15% cheaper but less flexible.
Unit Title vs Freehold
Unit title is for multi-unit developments (apartments, townhouses) with shared common property and a body corporate. Freehold is standalone ownership with full control. Different products for different needs.
Cross-Lease vs Unit Title
Both are multi-unit ownership structures, but they work very differently. Cross-lease involves shared land ownership with a flats plan, while unit title has a formal body corporate with a unit plan under the Unit Titles Act 2010. Unit title is the modern standard; cross-lease is a legacy NZ structure being gradually phased out.
Leasehold vs Freehold
Freehold means you own the land outright. Leasehold means you own the buildings but lease the land from a landowner (council, church, iwi, or private entity) and pay ground rent. Leasehold is significantly cheaper upfront but carries ongoing costs and risks around lease expiry and rent reviews.
Joint Tenancy vs Tenancy in Common
Joint tenancy means equal ownership with right of survivorship — when one owner dies, their share automatically passes to the surviving owner(s). Tenancy in common allows different ownership shares and each share passes through the owner's estate. The choice matters enormously for couples, investors, and estate planning.
Company Share vs Unit Title
Company share is an older ownership structure where you buy shares in a company that owns the building, giving you the right to occupy a unit. Unit title is the modern replacement under the Unit Titles Act 2010, where you hold individual title to your unit. Company share is being phased out and can cause lending and insurance difficulties.
Fee Simple vs Stratum Estate (Stratum in Freehold)
Fee simple is standard freehold ownership of land and everything on it. Stratum estate (stratum in freehold) is freehold ownership of a defined three-dimensional space — common in modern townhouse and terrace house developments where you own your dwelling's airspace but share or have separate arrangements for the land beneath.
Due Diligence Documents
LIM Report vs Title Search
A LIM report tells you what the council knows about a property. A title search shows who owns it and what legal interests are registered against it. You need both.
LIM Report vs Building Report
A LIM tells you what the council knows on paper. A building report tells you the physical condition of the property. They cover completely different things — get both.
Building Report vs Building Consent Search
A building report is a physical inspection of the property by a qualified inspector. A building consent search is a paper-based check of what building consents the council has on file. One tells you the condition; the other tells you the compliance history.
Code Compliance Certificate vs Certificate of Acceptance
A CCC is issued when building work passes council inspection and complies with the consent. A Certificate of Acceptance is issued when work was done without a building consent — it acknowledges the work exists but does not confirm it fully complies with the Building Code.
Registered Valuation vs Council Valuation (RV)
A registered valuation is a current, independent assessment of market value by a qualified valuer. A council valuation (rateable value or RV) is a mass-appraisal figure set by the council for rating purposes — it is not an estimate of what a property would sell for today.
Registered Valuation vs Market Appraisal
A registered valuation is a formal, independent assessment by a qualified valuer — accepted by banks and courts. A market appraisal is an informal estimate by a real estate agent, useful for pricing guidance but carrying no formal weight.
Building Report vs Methamphetamine Test
A building report assesses the structural and physical condition of a property. A meth test checks for methamphetamine contamination residue. They cover entirely different risks — a building report will not detect meth, and a meth test will not find a leaky roof.
Pre-Purchase Report vs Full Building Report
A pre-purchase report is a shorter, cheaper assessment covering the main areas of concern. A full building report is a comprehensive inspection with moisture testing, thermal imaging, and detailed analysis. The full report costs more but catches more.
Title Search vs Property File
A title search shows the legal record from LINZ — ownership, title type, and registered interests. A property file is the council's physical collection of building consents, plans, correspondence, and compliance records. One covers legal ownership; the other covers building history.
Buying Processes
Private Sale vs Auction
Private sale (treaty/negotiation) lets you include conditions like finance and building inspection to protect yourself. Auction requires you to bid unconditionally — once the hammer falls, the deal is binding with no way out.
Buying Existing Property vs Buying Off the Plan
Buying an existing property lets you inspect what you are getting before you commit. Buying off the plan means purchasing a new-build before it is constructed, with risks around delays, material changes, and developer solvency — but also the potential for a brand-new home at a locked-in price.
Residential Due Diligence vs Commercial Due Diligence
Residential due diligence focuses on building condition, title, and council records. Commercial due diligence adds layers of complexity — zoning and permitted use verification, lease agreements, seismic assessment, environmental contamination, and commercial body corporate obligations.
Conditional Offer vs Unconditional Offer
A conditional offer includes clauses that let you cancel if certain checks fail — like finance, building report, or LIM. An unconditional offer has no conditions and is immediately binding. Conditions protect you; going unconditional means accepting all risks.
Buying at Auction vs Buying by Tender
Auction is public, real-time competitive bidding where you can see what others offer. Tender is sealed bids submitted by a deadline — you cannot see competing offers, and the seller chooses which bid to accept. Both methods are typically unconditional.
Fixed Rate Mortgage vs Floating Rate Mortgage
A fixed rate locks your interest rate for a set period (typically 1-5 years in NZ), giving you payment certainty. A floating rate moves with the market and is directly influenced by the OCR. Many NZ borrowers split their lending across both to balance certainty with flexibility.
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