Property Title Defects in NZ: What to Do When Your Title Has Errors or Issues
Finding a defect on your property title can feel like discovering a crack in your home's foundation. But unlike structural cracks, most title defects are fixable — if you know what you're dealing with and act promptly.
This guide covers the most common property title defects in New Zealand, what they mean for your property rights, and exactly what steps to take to resolve them.
What Is a Title Defect?
A title defect is any issue, error, or irregularity recorded on (or missing from) your Record of Title that affects the property's legal ownership, use, or transferability. Defects range from simple clerical errors to serious problems that can block a sale or mortgage.
Common categories include:
- Clerical errors — Wrong names, incorrect dates, typos in legal descriptions - Missing documents — Easements or covenants that exist in practice but aren't registered - Outdated information — Mortgages that have been paid off but not discharged - Unregistered interests — Agreements or rights that affect the property but aren't on the title - Boundary discrepancies — Differences between the title plan and what's on the groundThe Most Common Title Defects in New Zealand
1. Spelling Errors and Name Discrepancies
The most common — and usually the easiest to fix. If your name is spelled differently on the title than on your ID, or if you've changed your name (marriage, deed poll), this creates a mismatch that solicitors and banks will flag.
How common: Very. A surprising number of titles have minor name errors.
How to fix: Apply to the land registry to correct the error. You'll need to provide evidence of the correct name (marriage certificate, deed poll, statutory declaration). The process is straightforward and typically takes 2–4 weeks.
Cost to check: Order a Record of Title with Diagram ($42.90) to see exactly how your name appears.
2. Undischarged Mortgages
You paid off your mortgage years ago, but the discharge was never registered. The title still shows the bank's mortgage, which can block a new sale or mortgage application.
How common: More common than you'd think, especially with older properties or mortgages that were refinanced multiple times.
How to fix: Contact the bank that held the mortgage (or its successor) and request a discharge. They'll prepare the discharge document, you'll sign it, and it gets registered. If the bank no longer exists, you may need to apply through the court.
Tip: Always confirm that your mortgage discharge has been registered — don't just assume your bank did it. Check your updated Record of Title after settlement.
3. Missing Easements
You've been using a shared driveway for 20 years, but there's no registered right-of-way easement on the title. Without it, the neighbour could legally block your access — and a buyer's solicitor will certainly flag this.
How common: Especially prevalent with older subdivisions where easements were informal or implied.
How to fix: You'll need to register a formal easement. This requires the agreement of both property owners, a survey plan, and registration. A solicitor can handle this, but it takes time and costs money — so identify it early.
What to order: A Survey Plan ($49.90) shows the boundaries and any registered easements. If the easement is missing, you'll see the gap immediately.
4. Incorrect Legal Descriptions
The title says "Lot 12" but your property is actually "Lot 12A". Or the area is listed as 650m² when it's really 720m². These discrepancies can cause major headaches during a sale.
How common: Often found in older titles that predate computerisation.
How to fix: Requires an application to correct the register, usually supported by a survey plan. A Historical Title ($42.90) can help you trace when the error was introduced.
5. Covenants That No Longer Apply
A covenant on the title says "no building above one storey" — but the council has since rezoned the area and granted resource consent for two-storey homes. The covenant is still registered, though it's effectively redundant.
How common: Very. Covenants from mid-century subdivisions often reflect long-outdated planning rules.
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How to fix: You have two options:
- Apply to have the covenant removed — This requires the original covenantor's consent (or their successor), or a court order if the covenantor can't be found.
- Leave it and explain — If the covenant is clearly outdated, buyers' solicitors will usually accept a note from your solicitor explaining the situation.
For the full covenant documents, order the Instruments ($39.90) to see the exact wording.
6. Boundary Encroachments
Your fence is 0.5m over the boundary — onto your neighbour's property. This isn't technically a title defect, but it becomes one when the neighbour disputes it or a survey reveals the discrepancy.
How common: Extremely. Many NZ properties have fences that don't perfectly follow the legal boundary.
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How to fix: A Survey Plan ($49.90) will show the exact legal boundaries. If there's an encroachment, you can:
- Agree to adjust the boundary (with the neighbour)
- Apply for an easement over the encroached area
- Move the fence to the correct boundary
7. Unregistered Caveats
A caveat has been lodged but not yet processed, or a caveat exists that should have been removed. This can freeze the title and prevent any dealings — including your sale or mortgage.
How common: Less common, but high-impact when they occur.
How to fix: If the caveat is valid, deal with the underlying claim. If it's frivolous or lapsed, apply to have it removed. A Legal Owner Search ($65.90) can help clarify ownership and any competing claims.
8. Title with Limited Status
Some older titles are classified as "limited" — meaning the register doesn't guarantee the accuracy of all information. This is a legacy of the conversion from the old Certificate of Title system.
How common: Rarely an issue for newer titles, but still found on older properties.
How to fix: You can apply to upgrade the title to "computer freehold" status, which provides full guarantee. This typically requires a survey and application through your solicitor. A Guaranteed Search ($45.90) provides the highest level of assurance for limited titles.
How to Check Your Title for Defects
Before you buy, sell, or mortgage a property, do a thorough title check:
1. Order a Record of Title with Diagram — The starting point. Shows ownership, estate type, and all registered interests.
2. Order the Instruments — The actual documents behind every registered interest. This is where you find the detail that the title summary doesn't show.
3. Order a Survey Plan — Compare the legal boundaries with what's on the ground.
4. For complex situations — A Pre-Purchase Package ($189.90) bundles all of the above plus a Guaranteed Search.
What Defects Mean for Your Property Value
Not all defects are equal. Here's a rough guide:
| Defect Type | Impact on Value | Difficulty to Fix |
| Name spelling error | None (if corrected early) | Easy — 2–4 weeks |
| Undischarged mortgage | Moderate (blocks sale until discharged) | Easy — bank processes discharge |
| Missing easement | Moderate to high (legal risk) | Moderate — requires agreement |
| Incorrect legal description | Moderate (delays settlement) | Moderate — requires survey |
| Outdated covenant | Low to moderate | Hard — requires removal or court order |
| Boundary encroachment | Variable | Moderate — depends on neighbour |
| Caveat | High (freezes dealings) | Variable — depends on validity |
| Limited title status | Low to moderate | Moderate — requires upgrade application |
When to Get Professional Help
You can order and read your own Record of Title. But if you find any of the following, engage a solicitor immediately:
- A caveat you didn't expect - Missing easements for access or services - Boundary discrepancies that affect your property size - Covenants that restrict your intended use - A limited title that needs upgrading - Any defect you don't fully understandYour solicitor can advise on the best path forward, deal with the land registry on your behalf, and ensure the defect is properly resolved — not just papered over.
Preventing Title Defects
The best time to catch a title defect is before it becomes your problem:
- Before buying: Always order a title search as part of your due diligence. Don't rely on the vendor's information alone. - After paying off a mortgage: Confirm the discharge is registered on your title. - After any property transaction: Check that the title reflects the change correctly. - Before selling: Order an up-to-date title search so you can resolve issues before a buyer's solicitor finds them.FAQ
Can I sell a property with a title defect?
Technically yes, but it depends on the defect. Minor errors (spelling, undischarged mortgages) can usually be resolved during the settlement process. More serious defects (caveats, missing easements) may need to be resolved before a buyer will proceed. Being upfront about known defects is always the best approach.
How long does it take to fix a title defect?
It varies widely. A simple name correction can take 2–4 weeks. Registering a missing easement might take 2–3 months. Removing a caveat can be instant (if the caveator agrees) or take months (if you need a court order). The key is to start early — don't wait until settlement day.
Will a title defect affect my property value?
It depends on the defect. A minor clerical error that's easily fixed won't affect value. A missing easement or an unresolved caveat can reduce value by 5–15% or more, because buyers factor in the risk and cost of resolution. Ordering a Pre-Purchase Package ($189.90) before you buy is the best way to avoid inheriting someone else's title problems.
Don't let a title defect catch you off guard. Order your Record of Title with Diagram today and check your title for issues before they become expensive problems.
