When you're buying a property in New Zealand, the title can reveal all sorts of registered interests — mortgages, covenants, easements. But one type of easement that catches many buyers off guard is the easement in gross. Unlike a standard easement that benefits a neighbouring property, an easement in gross benefits a person or organisation that doesn't own any adjacent land at all.
Understanding what an easement in gross means for your property title is essential before you commit to a purchase. Here's everything you need to know.
What Is an Easement in Gross?
An easement in gross is a right over someone else's land that is held by a person or entity in their own right, not as the owner of a neighbouring property. In practical terms, it means an organisation — usually a utility company, council, or government body — has the legal right to use a portion of your land for a specific purpose.
Common examples in New Zealand include:
- Power companies running transmission lines across private land
- Telecommunications providers laying fibre-optic cables underground
- Councils maintaining stormwater drains or sewerage pipes
- Gas pipeline operators running infrastructure through rural properties
- New Zealand Transport Agency (Waka Kotahi) accessing state highway corridors
The key distinction: there is no "dominant tenement" — no neighbouring property that benefits. The right is held "in gross" (on its own) by the grantee.
How Easement in Gross Differs from a Regular Easement
This is where many buyers get confused. Here's the difference in plain terms:
| Feature | Standard Easement | Easement in Gross |
|---------|------------------|-------------------|
When you order a Record of Title ($42.90 NZD), both types of easement will appear in the encumbrances section. But an easement in gross can be harder to spot because the grantee might not be a property owner you can easily identify.
Where Easements in Gross Appear on Your Title
On a New Zealand Record of Title, an easement in gross will typically be listed under the Encumbrances, Easements, and Interests section. It will show:
1. The type of easement (e.g., "right to lay and maintain underground cables")
2. The grantee (e.g., "Chorus New Zealand Limited" or "Transpower New Zealand Limited")
3. The instrument number — the legal document that created the easement
4. The land affected — often described by area or marked on the survey plan
If you want to see the actual easement document, you can order the specific Instrument document ($39.90 NZD) using the instrument number shown on your title.
Why Easements in Gross Matter for Property Buyers
1. They Restrict What You Can Do on Your Land
An easement in gross gives someone else the right to access and use part of your property. That might mean:
- You can't build a structure over a sewer easement corridor
- A power company can enter your property to maintain transmission lines
- Fibre-optic cables buried under your section mean you can't dig in that area without consent
- A pipeline easement might restrict planting trees that could damage underground infrastructure
2. They Can Affect Property Value
Properties with significant easements in gross — particularly large utility corridors — can be worth less than comparable unencumbered properties. The impact depends on:
- Size of the easement area relative to the total section
- Type of infrastructure (underground cables are less intrusive than overhead power lines)
- Frequency of access required by the grantee
- Visual impact on the property's amenity value
3. They Can Complicate Development Plans
If you're planning to subdivide, build, or renovate, an easement in gross can stop your project in its tracks. Councils will check for registered easements during the resource consent process, and the easement holder has legal rights that override your development plans in the affected area.
How to Check for Easements in Gross Before Buying
The most reliable way to check is to order a Record of Title with Diagram ($42.90 NZD). This gives you the current title with its survey plan, showing the exact location of any registered easements.
For more thorough due diligence — especially if you're buying a lifestyle block, rural property, or property near major infrastructure — consider the Pre-Purchase Diligence Package ($189.90 NZD), which bundles the Record of Title, Historical Title, Legal Owner Search, Instruments, and Survey Plans into one comprehensive report.
Steps to Check:
1. Order the Record of Title for the property you're considering
2. Review the Encumbrances section — look for entries with "Easement" or "Right to..."
3. Note the grantee — if it's a utility company or council rather than a neighbouring property owner, it's likely an easement in gross
4. Order the instrument document if you need to understand the exact terms and conditions
5. Check the survey plan to see the physical area affected
Can You Remove an Easement in Gross?
It's possible but rarely easy. Options include:
- Negotiation with the grantee: If the easement is no longer needed (e.g., a disused pipeline), you can ask the holder to surrender it. They'll typically want compensation or a replacement easement elsewhere.
- Application to the Registrar: Under certain circumstances, you can apply to have an easement removed if it's been abandoned or is no longer relevant.
- Court order: In rare cases, you can seek a court order for removal, but you'd need to prove the easement is obsolete or that the holder has abandoned the right.
For most property owners, the realistic approach is to understand the easement's terms and work within them, rather than trying to remove it.
Easement in Gross vs Right of Way: What's the Difference?
A common confusion:
- Right of Way = A type of easement that gives someone the right to pass through your property (usually to access their own property). It's an easement appurtenant — tied to a dominant tenement.
- Easement in Gross = A right held by someone who doesn't own neighbouring land. They're not passing through to get somewhere else — they're using your land for their infrastructure.
Both appear on your Record of Title, but the practical implications are different. A right of way usually means a neighbour drives across your driveway. An easement in gross usually means a utility company has infrastructure on (or under) your land.
What to Do If You Find an Easement in Gross on Your Title
1. Don't panic — most easements in gross are routine and have minimal impact on everyday property use
2. Read the instrument — order the Instruments document ($39.90 NZD) to understand the exact terms
3. Check the physical location — compare the easement area on the Survey Plan ($49.90 NZD) with where you plan to build or modify
4. Talk to your lawyer — if the easement significantly affects your intended use, get legal advice before proceeding with the purchase
5. Consider a Guaranteed Search ($45.90 NZD) if you need the registrar's guarantee that the title information is accurate and complete
FAQ
Can I refuse to grant an easement in gross on my property?
If the easement is already registered on the title, it's too late — it was granted by a previous owner and binds the land regardless of who owns it now. If a utility company or council approaches you to create a new easement, you can negotiate, but some organisations have compulsory acquisition powers under the Public Works Act.
Does an easement in gross expire?
Some easements in gross are granted in perpetuity, while others have a fixed term. The instrument document will specify the duration. Many utility easements are indefinite — they last as long as the infrastructure is in use.
Will an easement in gross show up on a standard title search?
Yes. All registered easements in gross appear on the Record of Title. However, unregistered or informal arrangements won't show up. That's why it's important to also check with the council for any pending easement applications or designations.
*Understanding easements in gross is a critical part of property due diligence in New Zealand. Before making any property decision, order a comprehensive title search to know exactly what registered interests affect your land.*
