Before you sign on the dotted line and agree to purchase a property, you need to perform a title check to ensure you’re getting exactly what you’re paying for.
A property’s title is a legal document held by Land Information New Zealand. The title records information about the boundaries of the property, and the details of each property sale.
What’s included in a property title?
The property title will tell you:
- who the official owner of the property is,
- the type of land the property exists on,
- any covenants, right of way, or easements,
- the official boundaries of the property.
- information on “registered interests” – eg. a mortgage on the property.
- information on “registered transactions” – eg. a history of the buying and selling of the property.
Bear in mind that your property title is NOT the same as a Land Information Memorandum (LIM) report, which you obtain from your local council. The LIM contains information on services (plumbing, drainage, water reticulation, consents and permits issued on the property, etc.
Why should you obtain your property title?
Your property title tells you important information that might impact your decision to buy. For example, covenants on the land may dictate features of your home, especially if you’re planning to build – such as type and size of house, building materials, colours, and land use. You might discover the land is leasehold or cross lease, when you expected it to be freehold, or that the boundaries aren’t where you expected.
The seller has a legal obligation to tell you the truth about these details, and you have a legal right to requisition (raise objections to) the title. When you buy at auction or via tender, these rights aren’t part of the sale and purchase agreement, so it’s especially important that you check the title.
Ultimately, viewing your property’s title will give you peace of mind that you know exactly what you’re getting into. For such a large purchase, it’s important to do your due diligence.
Who conducts a property title check?
Most people buying a new home will have their lawyer perform the title check. This will be billed at their normal hourly rate, or may be included as part of a conveyancing package.
However, if you want to save money, you can actually perform a title search yourself. You can do this by going to Land Information New Zealand and filling in the online form. Each title check will cost $15.
You need to be confident that you can interpret the title yourself, including any covenants on the land. This is why most people prefer to have their lawyer conduct this search.
It’s your responsibility to check all the details on the title and other property reports available through your local council. Checking these documents can be the difference between buying your dream home and being saddled with an expensive mistake. Don’t leave your property to chance – make sure you see and understand what’s on the title.
If you’ve found a property you’re interested in buying, give Mike Whittaker a call to learn how we can help you get the best possible mortgage. Our services are completely free, so you have nothing to lose. Book your free no-obligation chat today.
