Registered Interest
Any right or claim recorded on the property's certificate of title, such as a mortgage, easement, covenant, or caveat.
What is a Registered Interest?
A registered interest is any legal right or claim that has been formally recorded on the property's certificate of title with LINZ (Land Information New Zealand). Common registered interests include mortgages, easements, covenants, caveats, leases, and liens.
Registered interests are binding on all future owners of the property — they 'run with the land'. This means when you buy a property, you take it subject to all registered interests on the title, unless they are specifically removed before settlement.
The certificate of title shows all current registered interests, including when they were registered and the instrument number that contains the full details. Each interest is linked to an instrument (a legal document) that sets out the specific terms and conditions.
Why It Matters for Due Diligence
Reviewing all registered interests is a fundamental part of your lawyer's due diligence. Each interest can affect how you use the property. A mortgage must be discharged by the seller before settlement. An easement may restrict where you can build. A covenant may limit how you use the property.
Don't just rely on the title summary — ask your lawyer to obtain and review the actual instruments for each registered interest. The details matter, and a seemingly minor interest can have significant practical implications.
How to Check
Your lawyer will obtain the certificate of title from LINZ and review all registered interests. They will also obtain copies of the instruments (the detailed legal documents) for each interest. Ask your lawyer to explain each registered interest and how it might affect your use of the property.
Frequently Asked Questions
Will the seller's mortgage be removed before I take ownership?
Yes. The seller's lawyer must arrange for their mortgage to be discharged (removed from the title) at or before settlement. Your lawyer will verify this. You will not inherit the seller's mortgage.
Can I ask for registered interests to be removed before buying?
Mortgages and caveats are typically removed by the seller. Easements and covenants are harder to remove as they usually benefit a third party. If a registered interest is unacceptable, you can negotiate with the seller or choose not to proceed.
Related Terms
Easement
GlossaryA legal right allowing someone to use part of another person's land for a specific purpose.
Covenant
GlossaryA legally binding restriction or obligation attached to a property's title that controls how the land can be used.
Caveat
GlossaryA legal notice registered on a property's certificate of title warning that someone claims an interest in the property.
Mortgage
GlossaryA 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.
Lien
GlossaryA 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.
Understand Every Detail of Your Property in New Zealand
Upload your property documents and get AI-powered insights in minutes.
No commitment required · Start free