NZ property law glossary
Plain-English definitions of the 12 legal terms that come up most often in NZ property transactions. Written by working property lawyers, sourced from the matters we run every day.
Title and ownership
Records of Title, easements, encumbrances, cross leases, and the legal structure of NZ property.
Cross Lease
A NZ-specific shared-ownership title where a small group of owners each lease their own dwelling from the group, with shared ownership of the underlying land. Common in older Auckland infill properties.
Defective Title
A property title with a registration error, a flat plan that does not match the building, an unconsented improvement, or any other defect that limits saleability or registration. Common in older cross lease properties.
Easement
A registered right that allows one party to use part of another party's land for a specific purpose, such as a right of way, a drainage line, or a power line.
Encumbrance
Any registered interest on a property title that affects ownership, including mortgages, easements, covenants, and caveats. The umbrella term for the things that show up on a Record of Title beyond ownership.
Contracts and conveyancing
Sale and purchase agreements, deposits, conditions, and settlement.
Conditional Offer
A binding sale and purchase agreement that contains conditions the buyer must satisfy or waive before the deal is final, for example finance approval, LIM, or a building inspection.
Deposit
The first payment a buyer makes to commit to a property purchase, usually 10 percent of the purchase price, paid on the contract going unconditional.
Sale and Purchase Agreement
The contract between a buyer and seller for a NZ property. Almost always uses the ADLS or REINZ standard form, customised with conditions and special clauses.
Settlement
The day a property purchase legally completes. The buyer's lawyer pays the balance of the purchase price, the seller's lawyer hands over the keys, and ownership transfers in Landonline.
Finance and mortgages
Mortgages, refinances, discharges, and the legal side of the funding structure.
Commercial leasing
ADLS leases, lease drafting, and the standard NZ commercial leasing terms.
Regulatory and consent
OIO consent, sensitive land, and the regulatory regime overseas buyers must navigate.
OIO Consent
Consent from the Overseas Investment Office, required when an overseas person buys sensitive land in New Zealand or invests in significant business assets. The process for non-residents to lawfully acquire NZ property.
Sensitive Land
Land classified under the Overseas Investment Act as requiring OIO consent before an overseas person can buy it. Includes large rural blocks, foreshore-adjoining land, conservation-adjoining land, and (since 2018) ordinary residential land.
