When you order a Record of Title in New Zealand, you receive more than just a list of who owns the property. The title document contains a range of entries, notations, and registered interests that can tell you a great deal about what you can — and cannot — do with the land. Understanding these notations is essential for any buyer, investor, lawyer, or property professional.
This guide explains the most common property title notations in New Zealand, what they mean in practice, and what action (if any) you should take when you encounter them.
What Is a Property Title Notation?
A "notation" on a New Zealand property title is any recorded entry that affects the title beyond the basic ownership and legal description. Notations appear in various sections of the title and can include:
- Encumbrances (interests registered against the property)
- Restrictions on use or development
- Legal limitations on the title itself
- Notes required by statute
To see all the notations on a property you're interested in, order a Record of Title ($42.90). This gives you the current, official title document including all registered interests and any special notations.
Types of Notations You'll Encounter
1. Mortgage (or "Charge")
The most common notation. A mortgage recorded on the title means the property is used as security for a loan. It appears as "Mortgage" followed by a registration number and the name of the lending institution.
What it means for buyers: The mortgage must be discharged before settlement. Your solicitor will handle this — the vendor's bank releases the mortgage when they receive the purchase price. If the property goes to mortgagee sale, different rules apply.
Action: No special action needed — standard conveyancing handles this. Confirm the discharge will occur at settlement.
2. Easement
An easement gives a third party the right to use part of the property for a specific purpose. Common types include:
- Right of way — a neighbour or the public has the right to pass over a defined strip of land
- Utility easement — power lines, water pipes, or drainage infrastructure crosses the land
- Easement in gross — benefits a specific party (e.g. a council or utility company) rather than an adjoining property
Easements are often described on the title by a notation number that refers to a registered instrument. You can view the full terms of any easement by ordering the Registered Instrument ($39.90) using that notation number.
What it means for buyers: Easements run with the land — they remain in place even when the property is sold. A right-of-way can significantly affect your privacy and use of the property. Utility easements may restrict where you can build.
3. Land Covenant
A covenant is a restriction (or occasionally an obligation) that binds the landowner and all future owners. In New Zealand, common covenants include:
- Restrictions on what structures can be built (e.g. minimum floor area, no sheds visible from street)
- Requirements to maintain fencing or landscaping
- Prohibitions on certain land uses (e.g. no commercial activity)
- Requirements to use specific building materials
Like easements, covenants appear on the title by notation number. Review the full instrument ($39.90) to understand exactly what's restricted.
What it means for buyers: Covenants can limit your ability to develop or use the property as you'd like. Some covenants are very old and may no longer be enforceable, but this requires legal advice to confirm.
4. Consent Notice
A consent notice is a requirement placed on a title by a council under Section 221 of the Resource Management Act 1991. It records ongoing conditions that were attached to a resource consent when the land was developed or subdivided.
For example, a consent notice might require that no additional dwellings be built, or that stormwater be managed in a specific way, or that a certain area of the property be kept in native planting.
What it means for buyers: You are legally bound by consent notice conditions even if you weren't the one who applied for the original consent. Review any consent notices carefully — they can significantly restrict what you can do.
5. Section 71-74 Notice (Building Act 2004)
These notices are registered under the Building Act and relate to building work that has been accepted on a "no-code compliance certificate" basis, meaning the council accepted the work but didn't issue a full code compliance certificate. This is more common in older properties.
What it means for buyers: These notices can affect insurability, resale, and the ability to obtain a standard mortgage. They should be investigated thoroughly before purchase.
6. Caveat
A caveat is a notice lodged by someone who claims an interest in the property that is not yet formally registered. Common reasons for a caveat include:
- An agreement to purchase that hasn't yet settled
- A claim by a de facto partner or family member
- A contractual right that has been registered as a protective measure
What it means for buyers: A caveat can prevent the property from being sold or transferred until it's resolved. Your solicitor must investigate the nature of the caveat before you proceed.
7. Statutory Land Charge
Some government agencies — including councils — can register statutory land charges against a title for unpaid rates, infrastructure development contributions, or other obligations. These don't require the owner's consent to lodge.
What it means for buyers: A charge must typically be cleared before or at settlement. It reduces the net proceeds the vendor receives and may complicate the transaction.
8. "Limited as to Parcels" or "Limited as to Title"
These are historic notations that appear on older titles where the original survey was incomplete or where the chain of ownership couldn't be fully established. They are relatively rare on modern titles.
- Limited as to Parcels — the boundaries of the land have not been fully surveyed and confirmed
- Limited as to Title — there is some uncertainty in the chain of ownership going back to original title issue
What it means for buyers: These limitations can affect insurability and financing. They may require a Guaranteed Search ($45.90) to confirm the current registered state, and legal advice to assess the practical risk.
9. Profit à Prendre
A less common but important notation, a profit à prendre gives a third party the right to take something from the land — such as timber, minerals, or crops. These interests can be very long-standing.
What it means for buyers: If the right hasn't expired, a third party may have the legal right to access and remove resources from your land. Always investigate any notation you don't recognise.
How to Read a Title: Practical Tips
When you receive a Record of Title, work through it systematically:
- Confirm the estate type — freehold, cross-lease, or leasehold
- Check the ownership details — are all registered owners correct?
- Review all encumbrances — note every mortgage, easement, covenant, and notation
- Order instruments for any notation you don't understand — never assume
- Discuss unusual notations with your solicitor before making an unconditional offer
For a full picture of what's registered, a Pre-Purchase Due Diligence Package ($189.90) includes the current title, registered instruments, and a survey plan — everything you need for informed due diligence.
Related Articles
- Land Covenants in New Zealand: What Property Buyers Must Know
- Caveats on Property Titles in New Zealand: What They Mean
- Understanding Easements on Property Titles in New Zealand
Frequently Asked Questions
Are all title notations a red flag?
Not at all. Mortgages are on virtually every property — they're a normal part of property transactions. Easements are very common and often have minimal practical impact. The key is to understand what each notation means for your specific situation. Unusual notations — caveats, statutory charges, limitations — warrant closer investigation before you proceed.
Can I remove a notation from a property title in New Zealand?
It depends on the type of notation. Mortgages are removed at discharge. Caveats can be challenged or removed by consent. Some covenants and easements can be extinguished by court order or agreement between the parties — but this is a legal process that requires advice from a property solicitor. Some notations, like consent notices, cannot be removed while the underlying obligation exists.
Do I need a lawyer to interpret title notations before buying?
For any purchase, yes. A property solicitor can identify which notations are routine and which require further investigation. They'll also review the instruments behind each notation so you understand what you're committing to. Order the Record of Title ($42.90) early and share it with your lawyer — it's a small investment that can prevent very expensive surprises.
