Don't Let Title Problems Kill Your Sale
You've found a buyer, agreed on a price, and everything's moving forward — until your lawyer finds a problem on the title. In New Zealand, title issues are one of the most common reasons property settlements get delayed or fall through entirely. The frustrating part? Most of these problems are fixable if you catch them early.
Here are the most common property title problems that can delay your sale, and exactly what to do about each one.
1. Easements You Didn't Know About
Easements are registered rights that allow someone else to use part of your land. Common examples include:
- Right of way easements — giving a neighbour access across your driveway
- Drainage easements — allowing stormwater or sewer pipes to cross your property
- Utility easements — for power lines, telecommunications, or water mains
Most easements aren't a dealbreaker, but buyers need to know about them. Problems arise when:
- The easement isn't clearly disclosed on the title
- Structures have been built over the easement area
- The easement terms are restrictive (e.g., limiting what you can build)
Order a Record of Title with Diagram ($42.90) to see every easement registered on the property. For deeper insight into specific easement types, read our guide on how to check if a property has an easement in New Zealand.
2. Unregistered or Missing Documents
If the property has been through multiple transactions, documents can sometimes go missing from the registration system. This might include:
- A missing survey plan that defines the property boundaries
- An unregistered mortgage discharge
- Incomplete subdivision documentation
These gaps create uncertainty for buyers and their lawyers. A Guaranteed Search ($45.90) provides the official, guaranteed version of the title — the same document your buyer's lawyer will order. Seeing it first means no surprises.
3. Covenants That Restrict Use
Land covenants are rules registered on the title that restrict what the landowner can do. They might prohibit certain building types, limit fence heights, require specific materials, or even restrict who can live on the property.
Common problems include:
- Covenants from decades ago that are outdated but still legally enforceable
- Covenants that conflict with what the buyer wants to do (e.g., running a home business)
- Buyers who weren't aware of covenants until they read the title
Check your title for covenants early. See our article on how to check for covenants on a property in New Zealand.
4. Boundary Discrepancies
If the fences, buildings, or other structures on the property don't match the boundaries shown on the survey plan, you have a boundary discrepancy. This could mean:
- A garage or deck is built over the boundary line (encroachment)
- The fence line doesn't match the legal boundary
- The physical land area doesn't match the area on the title
Boundary issues can delay settlement by weeks while surveyors are engaged and negotiations happen with neighbours. Ordering a Survey Plan ($49.90) early lets you compare the registered boundaries with what's on the ground. For more detail, see how to find property boundaries in New Zealand.
5. Incorrect Names on the Title
If the name on the title doesn't match the seller's current legal name — due to marriage, deed poll, or simply a registration error — this needs to be corrected before the property can be transferred. This is a straightforward fix but can take several weeks through the land registration system.
6. Outstanding Mortgage Discharges
If you've paid off a mortgage but the discharge was never registered on the title, it will still appear as an active mortgage. This is a red flag for buyers and their lenders. The discharge needs to be registered before settlement can proceed.
7. Cross-Lease Complications
Cross-lease properties come with additional title complexity. Common problems include:
If you're selling a cross-lease property, make sure the flats plan is accurate and up to date before listing.
8. Caveats Registered on the Title
A caveat is a legal notice registered on the title by someone who claims an interest in the property. This could be a former partner, a creditor, or anyone with a legal claim. Caveats can prevent the property from being transferred until they're resolved or removed.
How to Prevent Title Problems Before They Delay Your Sale
The single most important step: check your title before you list. Don't wait for the buyer's lawyer to find problems. Order your title documents upfront and address issues proactively.
Our Pre-Purchase Due Diligence Package ($189.90) bundles the Record of Title, Guaranteed Search, Survey Plan, and more — everything you need to identify and resolve title problems before they become deal-breakers.
What to Do If You Find a Title Problem
- Don't panic — most title problems have established solutions
- Get professional advice — a property lawyer can advise on the best course of action
- Order the right documents — a Record of Title with Diagram ($42.90) and Guaranteed Search ($45.90) give you the full picture
- Start early — some fixes (like registering a mortgage discharge or updating a flats plan) can take weeks
- Be transparent with the buyer — disclosure builds trust and reduces the risk of the sale falling through
Frequently Asked Questions
How long does it take to fix a title problem before selling?
It depends on the issue. Simple corrections (like a name change) might take 2-4 weeks through the registration system. More complex issues (like resolving an encroachment or registering a mortgage discharge) could take 4-8 weeks. That's why it's critical to check your title early — ideally before you list the property.
Can a property sale proceed with title problems?
Sometimes. Minor issues (like an outdated flats plan on a cross-lease) might be handled through special conditions in the sale and purchase agreement. However, significant problems (like caveats, unresolved boundary disputes, or missing discharges) will typically need to be resolved before the buyer's lender will approve finance. Ordering a Guaranteed Search ($45.90) shows you exactly what the buyer's lawyer will see.
What's the difference between a Record of Title and a Guaranteed Search?
A Record of Title shows the current state of the title as recorded in the register. A Guaranteed Search is the official, guaranteed version that provides the same information with the guarantee of the Crown — it's what lawyers order as part of a property transaction. Both show easements, covenants, mortgages, and other registered interests. For selling, the Guaranteed Search is what matters most.
