Cross Lease Title

We remedy defective cross lease titles in New Zealand by making the legally required changes. We have a team of licensed surveyors, engineers, town planners and lawyers who can help you navigate the intricate process of updating defective cross lease titles. We make sure that your current flats plan describes the exact outline of the structures or dwellings on it. We re-measure the flats, re-draft the flats plan, obtain Council consent for the changes and ask the Council to re-issue new titles.

Difficulties With Cross Lease Titles

One of the most common challenges with Cross Lease properties arises when modifications are made to the building without a corresponding update to the Cross Lease title to reflect these alterations. Cross Lease titles are initially established based on the building's physical footprint, complete with an exclusive covenant area. Any changes to this building footprint necessitate an update to the title.

We frequently receive last-minute inquiries from homeowners selling their properties, as potential buyers have noticed disparities between the title's depicted footprint and the actual building structure on the ground. The process of updating the title is not swift, as it involves obtaining a Resource Consent from the local Council. Moreover, since the other Cross Lease co-owners share an interest in the land, this process requires cooperation among all parties involved.

Defective Title Cross Lease Examples

A defective title in a cross-lease arrangement typically arises when the current layout of the building structure doesn’t align with the flats plan, violating the cross lease rules in NZ. These issues can make it unclear or disputed who has the rights to use and occupy certain parts of the property.

Here’s a general cross lease title example,

Imagine two neighbours, Alice and Bob, own adjoining properties in a cross-lease arrangement. They each have their own homes on the respective properties, and they have entered into a cross-lease agreement, allowing them to lease each other's land for specific purposes, such as parking.

However, when they initially set up the cross-lease arrangement, there was a mistake in the legal description of the leased areas in the cross-lease document. The document inaccurately described the boundaries of the leased land.

As a result:

  • The boundaries of the leased areas were not properly defined, leading to confusion about which specific portions of the properties Alice and Bob have the right to use.

  • Alice believes she has the right to park her car on a particular section of Bob's property based on the defective document, while Bob disputes this claim, arguing that the document is incorrect.

The defective title can lead to potential legal disputes between Alice and Bob over the use of the land, as well as concerns about how to rectify the error. To resolve this defective title issue in a cross-lease, Alice and Bob would likely need to work together to amend the cross-lease agreement and correct the legal description of the leased areas.

At this stage, both Alice and Bob would need to consult with a lawyer or a team of cadastral surveyors or land planners to ensure compliance with cross lease legislation and accurately reflect their rights.

Things You Should Do For A Cross Lease Title

If you are purchasing a property with a cross lease title, you have three options to handle this issue. Each of these options has its advantages and costs, so it's essential to carefully evaluate which approach aligns best with your goals and the property's specific circumstances.

  • Maintain the Status Quo and Negotiate Price Reduction: You can choose not to take immediate action and instead negotiate a reduction in the purchase price. However, this approach doesn't resolve the underlying issues and may lead to complications in the future.
  • Rectify the Title: Rectifying the title involves obtaining subdivision consent from the Council and updating the cross-lease title and plan. It's essential to note that any future alterations to the property may potentially render the title defective again, necessitating further rectification at an additional cost.
  • Convert to Freehold: Converting to freehold also requires subdivision consent from the Council and a new legal survey. This process transforms the cross-lease titles into freehold titles. It's important to convert all cross-lease titles on the property so that the costs can be shared among the landowners through negotiation. It's worth mentioning that this conversion results in an increase in the perceived property value.

Contact Civix to Update Your Titles

Do not overlook the importance of rectifying the Cross Lease title. Failure to do so can result in substantial delays in the property settlement process, potentially lasting for months. It also impacts property values and creates boundary disputes among Cross Lease property owners.

Civix has a team of licensed professionals and lawyers who can help you rectify this issue so you can easily build, renovate, put on leasehold, or sell your property without any discrepancies.

We are Proven and Trusted

"We have worked with Civix for a number of years over a number of projects and always found them to be professional and committed."

Peter R

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"I used Civix for our subdivision in Browns Bay. They provided highly professional and timely services right from the get go, which made our consenting process a breeze. Thank you Duncan and your team."

Geoffrey A.

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"My working relationship with Civix spans almost 3 years as co-consultant. I have always found Duncan and the rest of the team great to work with — professional, communicative, environmentally conscious, and solutions-focused to delivering excellent project outcomes."

Kathryn L.

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"I have worked with Duncan and his team on a couple of projects and always found the team to professional and timely in their responses to us and even when things don't go our way, we have always maintained a good working relationship and I would trust them to do a fair job. Jacquie Lindsay"

Jacquie L.

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