on the title once a formal survey is carried out.
The notation of whether the site is limited to parcels is usually found at the top of the title. It is necessary to check the memorials on the title to see whether this limitation has been
removed.
A surveyor will be able to determine the exact boundaries and can deposit a survey plan that will enable removal of this notation on the title. However, the current registered owner is not required by law to remove such a limitation. This means the purchaser cannot force the
vendor to have the property surveyed.
It is important to note that some councils will not consider resource consent for properties that are ‘limited as to parcels’. This is particularly the case with commercial and industrial developments, where there is often a requirement to build on, or very close to, the legal boundary of the property.
If a purchaser arranged for a survey that showed that there were substantial discrepancies, the purchaser may have a claim for compensation against the vendor. For example, if a licensee, on behalf of a vendor, represented a title as estate in fee simple without disclosing that it was ‘limited as to parcels’, the purchaser may have a claim for loss as a result of that misrepresentation.
A prospective purchaser would need to be fully informed of the situation and recommended to seek independent legal or technical advice before proceeding to enter into a transaction
