New Zealand property buyers often ask: "I've had a building inspection—do I still need a title search?" The short answer is yes. A building inspection and a title search examine completely different aspects of a property. Together, they give you the complete picture before you buy.
What Does a Building Inspection Cover?
A building inspection report (often required by your bank for mortgage approval) focuses on the physical condition of the property:
- Structural integrity of the building
- Roof condition and any leaks
- Electrical and plumbing systems
- Interior and exterior condition
- Pest damage (borer, termites)
- Compliance with building codes
- Weathertightness issues
A building inspector looks at what you can see. They check the physical structure, fixtures, and fittings. Their report tells you about the condition of the house today.
What a building inspection doesn't tell you is everything about the land itself—the legal aspect of your purchase.
What Does a Title Search Cover?
A title search examines the legal status of the property. It reveals:
- Who legally owns the property
- Any mortgages or charges registered against it
- Easements and covenants affecting the land
- Consent notices and conditions
- Any caveats or encumbrances
- Historical ownership chain
- Whether the boundaries are accurately described
A title search tells you about the legal rights and restrictions attached to the property. It answers questions like: "Can I build a fence there?" "Is there a right of way I need to know about?" "Are there any charges I might have to pay?"
The Key Differences
| Aspect | Building Inspection | Title Search |
|---|---|---|
| What it examines | Physical condition of buildings | Legal status of the land |
| Who performs it | Building inspector | Us (Certificate of Title NZ) |
| What it reveals | Structural issues, leaks, damage | Ownership, mortgages, easements, covenants |
| When problems appear | During inspection | In title documents |
| Cost | $400-$1,000+ | $42.90-$189.90 |
| Legal requirement | Often for mortgage finance | Essential for due diligence |
Why You Need Both
Imagine buying a property only to discover after settlement that:
- There's a registered easement across your backyard where you planned to build a pool
- A consent notice requires you to maintain a tree line you didn't know about
- The previous owner's mortgage is still registered and the bank has claims against the property
- A caveat has been lodged by someone claiming an interest you weren't told about
These aren't physical problems a building inspector would find. They're legal issues that a Record of Title for $42.90 would reveal.
The Most Common Issues Found in Title Searches
Our title searches regularly uncover issues that building inspections miss:
- Right of way easements: Your neighbour may have legal vehicle access across your property
- Drainage easements: Council or utility companies may have rights to access pipes under your land
- Consent notices: The previous owner agreed to conditions that bind future owners
- Land covenants: Restrictions on what you can build, subdivide, or use the land for
- Undischarged mortgages: The seller may still owe money secured against the property
None of these would appear in a building inspection report.
What Happens If You Skip the Title Search?
Buying property without a title search is like buying a car without checking if it's stolen or has outstanding finance. You might own it physically, but there could be legal claims against it that become your problem after settlement.
In New Zealand, vendor disclosure requirements exist, but they don't cover everything. A title search gives you independent verification—something you can rely on regardless of what the seller told you.
Our Due Diligence Options
For comprehensive protection before buying:
- Record of Title ($42.90) — Current ownership, mortgages, easements
- Historical Title ($42.90) — Previous ownership changes and transactions
- Legal Owner Search ($65.90) — Verify current registered owner identity
- Pre-Purchase Package ($189.90) — Everything bundled: current title, historical, owner verification
The Bottom Line
A building inspection tells you if the house is structurally sound. A title search tells you if the land is legally sound. You need both.
The cost of a title search ($42.90-$189.90) is minimal compared to the potential cost of discovering legal issues after settlement. We've seen buyers face thousands of dollars in unexpected costs because they skipped this step.
Don't let your property purchase be half-informed. Get the full picture with both inspections and title searches.
Frequently Asked Questions
Can I rely on the LIM report instead of a title search?
A LIM (Land Information Memorandum) report from the council contains useful information about the property—including rates, consents, and building requirements—but it doesn't replace a title search. A LIM tells you what the council knows; a title search tells you what's registered against the land itself. Both are important and serve different purposes.
Is a builder's report more important than a title search?
They're equally important but examine different things. A builder's report protects you from physical defects. A title search protects you from legal defects. You should do both before settlement. Some issues discovered in a title search might even lead you to renegotiate the price or walk away from the purchase.
When should I order a title search in the buying process?
Order a title search as soon as your offer is accepted (subject to satisfactory title). Order a final updated title 24-48 hours before settlement to ensure nothing has changed since your initial search. This is the most current information available and gives you time to resolve any last-minute issues.
