Buying property in New Zealand is a significant financial commitment. Yet many buyers skip the title search and end up facing costly surprises after settlement. This guide reveals the most common title errors that cost New Zealand buyers thousands of dollars – and how to avoid them.
Why Title Errors Happen
Property titles can contain errors or issues that are not visible during a property inspection. These might include:
- Incorrect boundary information
- Missing easements or incorrect easement locations
- Unregistered interests or covenants
- Historical issues affecting the title
- Name discrepancies on the title
Common Title Errors in New Zealand
1. Boundary Disputes
One of the most costly errors involves incorrect boundary information. A neighbour might have built over the actual boundary, or the title might show outdated boundaries. Without a Survey Plan, you could be liable for thousands in legal fees to resolve boundary disputes.
Solution: Our Survey Plan ($49.90) shows exact boundary positions.
2. Missing Easements
Rights of way, utility easements, or drainage easements might not appear in marketing materials but are registered on the title. Building in the wrong spot can block these rights and cost thousands to resolve.
Solution: A Record of Title ($42.90) shows all registered easements.
3. Incorrect Ownership Names
Property might be registered to people who have died, divorced, or are no longer involved. Purchasing without verifying current ownership can delay settlement or create legal complications.
Solution: Our Guaranteed Search ($45.90) verifies current ownership.
4. Hidden Covenants
Title covenants can restrict what you can build or do with the property. Discovering these after purchase can prevent your development plans or affect property value.
Solution: Full title search reveals all covenants before you commit.
5. Limited as to Title
Some properties are marked limited as to title or limited as to parcels, indicating unresolved boundary or ownership issues. These require additional investigation before purchase.
Solution: Our Historical Title Search ($42.90) reveals underlying issues.
How Title Errors Cost You Money
These are not hypothetical scenarios – they happen regularly in New Zealand property transactions:
- Boundary disputes: $5,000-$20,000 to resolve
- Easement conflicts: $2,000-$10,000 in legal fees
- Covenant violations: $10,000+ to remediate or remove
- Title insurance claims: $1,000+ in premiums plus excess
- Delayed settlement: Interest costs, rental losses
How to Protect Yourself
The simplest protection is a comprehensive title search before you go unconditional:
Recommended Package: Pre-Purchase Property Package ($189.90)
This all-in-one package includes:
- Current Record of Title ($42.90)
- Guaranteed Search ($45.90)
- Historical Title Search ($42.90)
- Instruments/Documents ($39.90)
- Survey Plan ($49.90)
This comprehensive search reveals all common title errors before they become expensive problems.
Frequently Asked Questions
Can I get money back if there are title errors?
Not usually. Once you have purchased, title issues are your responsibility. This is why pre-purchase title searches are essential.
Do real estate agents disclose title problems?
They must disclose known issues, but many title problems are only discoverable through a formal title search.
Is title insurance worth it?
Title insurance can provide protection but costs extra and has limitations. A thorough title search catches most issues before purchase.
What is the most common title error?
Easements that are not visible during inspection – right of way and utility easements are registered on the title but not obvious when viewing the property.
