When you're buying property in New Zealand, you'll encounter two important documents that often get confused: the property title (Record of Title) and the rates record. Both contain critical information about a property — but they serve entirely different purposes, and relying on just one can leave you with expensive blind spots.
In this guide, we'll break down exactly what each document contains, how they differ, and why smart buyers and investors check both before making any decisions.
What Is a Property Title (Record of Title)?
The Record of Title — formerly known as the Certificate of Title — is the official register of land ownership in New Zealand. It's maintained by New Zealand's official land information body and is the definitive proof of who owns a property and what rights or restrictions apply to it.
A Record of Title includes:
- Legal owner(s) — the registered proprietor(s) of the land
- Legal description — the survey reference (e.g., Lot 123 DP 45678)
- Estate type — freehold, leasehold, or other tenure
- Encumbrances — mortgages, easements, covenants, and other registered interests
- Caveats — warnings that someone claims an interest in the property
- Consent notices — conditions under the Resource Management Act
You can order a Record of Title with Diagram for $42.90 through Certificate of Title NZ, which includes the title plan showing boundaries and area.
What Is a Rates Record?
A rates record (sometimes called a rating information record or property valuation notice) is issued by your local council. It contains information about the property's rating valuation and rates obligations.
A rates record typically includes:
- Capital value (CV) — the council's assessed value of the property
- Land value (LV) — the assessed value of the land only
- Improvement value — the assessed value of buildings and improvements (CV minus LV)
- Annual rates — how much you'll pay in council and regional rates
- Rating classification — whether the property is residential, commercial, rural, etc.
- Rates arrears — any unpaid rates (this is crucial!)
Rates records are available from your local council, usually free to view online through the council's property search portal.
Key Differences: Property Title vs Rates Record
| Feature | Property Title (Record of Title) | Rates Record |
|---|---|---|
| Issued by | NZ land registry (official land information body) | Local council (territorial authority) |
| Primary purpose | Prove ownership and registered interests | Assess and collect rates |
| Shows ownership | Yes — legal registered owner(s) | Yes — rates payer (may differ from owner) |
| Shows boundaries | Yes — title plan with exact boundaries | No — may show approximate area only |
| Shows encumbrances | Yes — mortgages, easements, covenants, caveats | No |
| Shows rates owed | No | Yes — including arrears |
| Shows valuation | No | Yes — CV, LV, improvement value |
| Cost to obtain | From $42.90 (via Certificate of Title NZ) | Usually free online from council |
| Legal weight | Definitive proof of ownership | Informational — not proof of ownership |
Why You Need Both Documents
1. Ownership Doesn't Always Match the Rates Payer
The person named on the rates record isn't necessarily the legal owner. A tenant may be listed as the rates payer. A trust may own the property while a family member pays the rates. Only the Record of Title gives you definitive legal ownership.
If you rely solely on the rates record to confirm who owns a property, you could be dealing with the wrong person entirely.
2. Unpaid Rates Can Become Your Problem
Here's a scenario that catches buyers off guard: the seller has unpaid rates arrears. Under New Zealand law, unpaid rates become a charge on the land. That means if you buy the property without settling those arrears, you could be responsible for paying them.
The property title won't show you this. Only the rates record reveals outstanding rates. This is why checking both documents is non-negotiable.
3. Valuations Affect Your Investment Returns
The rates record gives you the council's valuation, which affects:
- Your annual rates bill (directly tied to CV)
- Insurance premiums (often based on CV)
- Expected rental yield (inversely related to LV)
- Future resale expectations
If the CV seems significantly higher or lower than market value, that's a signal worth investigating. It could mean the valuation is overdue for an update — or that the property has issues the market has already priced in.
4. Boundary Discrepancies Are Common
Council records sometimes show different property areas than the title. This usually happens because:
- The council uses rating area (which may include or exclude shared spaces differently)
- Subdivisions haven't been reflected in both systems simultaneously
- Historic boundary adjustments exist on the title but not in the council's records
If you're buying and the area on the rates record doesn't match the title, that's a red flag worth investigating with a Survey Plan ($49.90).
How to Order Both Documents
Property Title
Order through Certificate of Title NZ for fast, professional results:
- Record of Title with Diagram — $42.90
- Guaranteed Search — $45.90 (recommended for property purchases)
- Pre-Purchase Due Diligence Package — $189.90 (includes title, search, instruments, and survey plan)
Rates Record
Access your local council's property search portal. Most councils provide this information free online. Search for "[your council name] property search" or "[your council name] rates inquiry."
When the Documents Contradict Each Other
Sometimes the information on the title and the rates record won't match. Here are common discrepancies and what to do:
- Different owner names: Always trust the Record of Title. The rates record may show a former owner or a tenant. If there's a genuine discrepancy, contact the council to update their records.
- Different property areas: Order a survey plan to confirm the actual boundaries. The title's legal description is authoritative.
- Rates arrears on a property you're buying: Make this a condition of settlement. Your solicitor should ensure all arrears are cleared before (or at) settlement.
- Outdated CV: Councils typically revalue every three years. If the CV is old, factor in that your actual rates may change at the next revaluation.
Real-World Example: Why Both Documents Saved a Buyer $18,000
A buyer in Christchurch was purchasing a residential property. The Record of Title looked clean — no mortgages, no easements, no caveats. But the rates record revealed $4,200 in unpaid rates and a pending special levy of $13,800 for a council infrastructure project.
Had the buyer only checked the title, they would have inherited nearly $18,000 in liabilities. Instead, they negotiated the arrears and levy off the purchase price — saving a significant sum.
This is why we always recommend the Pre-Purchase Due Diligence Package ($189.90), which covers your title search thoroughly, combined with a free council rates check.
Related Reading
- How Much Does a Title Search Cost in NZ? (Updated July 2026)
- Pre-Purchase Title Report NZ: What It Includes and Why You Need One
- How to Check if a Property Has Unpaid Rates in New Zealand
Frequently Asked Questions
Can I use a rates record instead of a property title to prove ownership?
No. A rates record is informational only and does not constitute legal proof of ownership. The Record of Title is the only document that provides definitive proof of who legally owns a property in New Zealand. The rates payer and the legal owner are not always the same person.
What happens if there are unpaid rates on a property I'm buying?
Unpaid rates become a charge on the land, meaning they attach to the property, not the person. If you buy a property with rates arrears, you may become responsible for paying them. Your solicitor should ensure all rates arrears are cleared as a condition of settlement.
Why is the property area different on my rates record vs my title?
Councils use rating areas which may be calculated differently from the legal survey area on the title. Common reasons include shared spaces (e.g., common areas in a unit title development), outdated council records following a subdivision, or rounding differences. If there's a significant discrepancy, order a survey plan to confirm the actual boundaries.
