Amalgamation
The process of merging two or more separate property titles into a single title, creating one larger parcel of land.
What is a Amalgamation?
Amalgamation is the reverse of subdivision — it combines multiple adjoining titles into one. In New Zealand, amalgamation is typically done when a property owner purchases a neighbouring property and wants to merge the two into a single title, or when council subdivision consent conditions require it.
Amalgamation conditions are sometimes imposed by councils as part of resource consent for subdivision or land use. For example, a council might consent to a new dwelling on a rear lot on the condition that the rear lot is amalgamated with an adjoining lot to create a viable site.
The process requires a surveyor to prepare a new survey plan and a lawyer to handle the LINZ registration. It's simpler and cheaper than subdivision because it typically doesn't require resource consent (unless it's a condition of another consent).
Why It Matters for Due Diligence
If you're buying a property that has an amalgamation condition on the title, understand what it requires. Some amalgamation conditions prevent you from selling the property separately from an adjoining lot — effectively tying the two properties together.
Check whether any amalgamation conditions have been satisfied or are still outstanding. Outstanding conditions can restrict what you can do with the property and complicate future sales.
How to Check
Amalgamation conditions are recorded on the certificate of title as a memorial. Your lawyer should identify and explain any amalgamation conditions during the title search. Check with the council whether the conditions have been met or are still outstanding.
If you're considering amalgamating titles you already own, consult a surveyor and lawyer to understand the process and costs.
Frequently Asked Questions
How much does amalgamation cost?
Amalgamation is typically simpler than subdivision. Costs generally range from $5,000-$15,000 including surveying fees and LINZ registration. If resource consent is also required, costs increase.
Can I amalgamate two properties with different title types?
It depends on the title types. Two freehold titles can usually be amalgamated straightforwardly. Combining different title types (e.g. freehold and leasehold) is more complex and may not always be possible. Consult a lawyer and surveyor.
Related Terms
Subdivision
GlossaryThe process of dividing a single piece of land into two or more separate titles, each of which can be independently owned and sold.
Certificate of Title
GlossaryThe official legal document registered with LINZ that proves who owns a property and records all registered interests affecting it.
Survey Plan
GlossaryAn official plan prepared by a licensed cadastral surveyor that defines the legal boundaries and dimensions of a property.
Resource Consent
GlossaryPermission from the local council to carry out an activity that affects the environment, required under the Resource Management Act 1991.
Encumbrance
GlossaryAny registered claim, charge, or restriction on a property's title that may affect the owner's ability to use or transfer the property freely.
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