Understanding the serious implications of a "limited as to title" property in New Zealand and what it means for buyers.
Ready to order the official title?
A current Record of Title with diagram is the usual starting point for confirming ownership, legal description, registered interests and title diagram information.
What Does "Limited as to Title" Mean?
Limited as to title is a far more serious problem than 'limited as to parcels' because it is a defect in the title itself.
⚠️ Critical Issue:
It means that when the land was transferred into the current registration system (under the Land Transfer Act 2017), the registrar was not completely satisfied that the property owner in possession had full legal ownership rights to the land.
Why This Happens
There are a number of possible reasons for this limitation:
📖 Historical Example:
A number of properties in Cardrona in Central Otago were originally purchased by gold miners in the late 19th century but were abandoned when the goldfields became less profitable.
Adverse Possession
Anyone who has used the land for a continuous period of at least 20 years, without the registered proprietor's consent (such as a squatter, or someone with an unregistered lease) may claim ownership by 'adverse possession'.
The current proprietor would need to provide adequate evidence of their continuous occupation to the Registrar to have the title recorded in their name.
Loss of Indefeasibility Protection
- 🚩 No Crown Protection — The property is not subject to the rule of indefeasibility
- 🚩 No Compensation — The Crown will not provide compensation for loss resulting from the defect
These situations are rare, but should an affected transaction arise, the prospective purchaser would need to be fully informed of the situation and recommended to seek independent legal or technical advice before proceeding.
🔍 Check Your Property Title
Find out if your property has any title limitations — delivered within 2 hours
Order Your Search →Certificate of Title NZ is an independent service providing property title searches from New Zealand's official land registry.
