Cross lease titles are one of the most common — and most misunderstood — forms of property ownership in New Zealand. If you're buying a cross lease property, here's everything you need to know before signing.
What Is a Cross Lease Title?
A cross lease is a form of shared property ownership unique to New Zealand. Under a cross lease arrangement, each owner holds an undivided share of the freehold land and a leasehold interest in the building (or "flat") they occupy. Essentially, you own a share of the entire piece of land together with the other owners, and each of you has a long-term lease over your specific dwelling.
Cross leases became popular in the 1960s through 1990s as a way to subdivide properties without going through the full subdivision process. While councils now generally require fee simple subdivision for new developments, there are still hundreds of thousands of cross lease properties across New Zealand.
How Cross Leases Differ from Fee Simple and Unit Titles
Key Issues with Cross Lease Properties
🏗️ Building Modifications
Any changes to the building footprint — extensions, decks, garages — require consent from all co-lessees. Unapproved alterations can make the flats plan inaccurate, causing legal and insurance complications.
🚩 Flats Plan Accuracy
The flats plan recorded on the title must match the actual buildings. If a previous owner added a conservatory or carport without updating the plan, you could inherit an expensive problem.
🤝 Co-owner Relationships
Disputes between cross lease owners over shared areas, noise, or maintenance can be difficult to resolve. Good relationships with neighbours are especially important on cross lease properties.
📋 Exclusive Use Areas
Some cross leases define exclusive use areas (like specific garden sections). These are shown on the flats plan and form part of the lease. Check your title carefully to understand exactly what areas you have exclusive use of.
What to Check Before Buying a Cross Lease Property
💡 Good to know:
A Record of Title with Diagram from Certificate of Title NZ costs just $42.90 NZD and includes the flats plan showing building footprints and exclusive use areas — essential for any cross lease purchase.
Can You Convert a Cross Lease to Fee Simple?
Yes — and many owners choose to do so. Converting a cross lease to fee simple gives each owner their own clearly defined piece of land with full ownership rights. The process typically involves:
1. Agreement from all co-lessees — everyone on the cross lease must agree to the conversion.
2. Survey and subdivision — a licensed cadastral surveyor divides the land into individual lots.
3. Resource consent — your local council must approve the subdivision.
4. New titles issued — once the survey plan is deposited, new fee simple titles are created.
The cost typically ranges from $15,000 to $30,000+ shared between owners, depending on council requirements and the complexity of the site. While not cheap, it removes the restrictions of cross lease ownership and can increase property value.
Frequently Asked Questions
🔍 Check Your Cross Lease Title
Order a Record of Title to see flats plans, ownership, and registered interests
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.