Introduction
When buying or selling property in New Zealand, most people focus on what's on the title — easements, covenants, mortgages, and other registered interests. But what about what's not on the title? Some of the most costly property problems are the ones that don't show up in a standard title search.
Understanding the gaps between what your title shows and what could affect your property is essential for making informed decisions. Here's what your property title doesn't show you — and how to uncover those hidden risks.
Unregistered Interests: The Silent Title Problem
Your Record of Title only shows registered interests. But not all property interests are registered. Common unregistered interests include:
- Informal agreements with neighbours about shared driveways, fences, or access
- Unregistered easements — rights that have been used for years but never formalised
- Possessory claims — someone who has occupied part of your land for 20+ years may have a claim
- Building work completed without proper consent that could affect the property
These don't appear on a standard Record of Title ($42.90), but they can still affect your rights as a property owner.
Council Records Your Title Won't Reveal
Your title doesn't include most council records that could significantly impact your property:
Building Consent History
A title search won't tell you whether previous building work had proper consent. Unconsented work — structural alterations, deck additions, bathroom renovations — can create serious problems when you want to renovate, insure, or sell. You need to check council records separately.
Code of Compliance Certificates
Even if building consent was obtained, was a Code of Compliance Certificate (CCC) issued? Without a CCC, the work isn't officially signed off. Your title won't mention this — you need to check with the local council.
Resource Consent Conditions
While consent notices are registered on titles (under Section 221 of the RMA), the full resource consent conditions aren't. The consent notice on your title is just a summary — the actual consent may contain much more detailed conditions and obligations.
Natural Hazards Not on Your Title
New Zealand's natural environment creates risks that titles simply don't address:
Flood Risk
Your title won't tell you if the property is in a flood zone. Councils maintain flood hazard maps, and you should check these before buying — especially in low-lying areas or near waterways. Flood risk can affect insurance costs, resale value, and even whether you can get building consent for renovations.
Land Instability and Subsidence
Properties on hillsides, in areas with reactive soils, or near coastlines may face instability risks. Your title won't mention these, but a survey plan ($49.90) might reveal topographic features that warrant further investigation.
Earthquake-Prone Building Classification
If you're buying an apartment or commercial property, the building may be classified as earthquake-prone — but this won't appear on the title. You need to check the national earthquake-prone building register and the local council's records.
The LIM Report: Your Secret Weapon
A Land Information Memorandum (LIM) report from the local council is the single most important document for uncovering what your title doesn't show. A LIM report includes:
- Building consent history and Code of Compliance status
- Resource consent information
- Flood and erosion hazard designations
- Soil and contamination reports
- Special land features (heritage, Māori significance, etc.)
- Outstanding rates or charges
- Proposed zoning changes
- Stormwater and sewer connection information
The LIM report typically costs $300–$500 from your local council and takes 10–15 working days. It's essential for any serious property purchase — think of it as the title's essential companion.
Hidden Financial Obligations
Some financial commitments don't appear on the title:
Body Corporate Levies
If you're buying a unit title property, ongoing body corporate levies won't be on the title itself — but they'll be in the body corporate records. Always request the full body corporate documentation, including minutes and financial statements, before committing to a purchase. Learn more about body corporate title searches.
Development Contributions
Councils can impose development contributions on new subdivisions — one-off payments for infrastructure like roads, water, and sewerage. These may be noted on a consent notice, but the exact amounts might not be clear from the title alone.
Outstanding Rates
While unpaid rates can be registered as a charge on the title, recent arrears might not appear yet. Check with the local council for any outstanding rates or water charges.
Boundary and Survey Discrepancies
Your title shows the legal description and area of your property, but it doesn't guarantee that physical boundaries match. Common issues include:
- Fence lines that don't match the title boundary — a fence might be 0.5 metres inside or outside the true boundary
- Encroachments — a neighbour's garage, shed, or driveway that crosses onto your land
- Missing boundary pegs — old survey pegs may have been removed or displaced
Ordering a Survey Plan ($49.90) alongside your Record of Title helps identify boundary issues. For full peace of mind, a registered surveyor can confirm physical boundaries.
Insurance and Compliance Gaps
Your title doesn't tell you whether the property is insurable or compliant with current regulations:
Weathertightness
Properties built between 1994 and 2004 with monolithic cladding may have weathertightness issues. Your title won't flag this — you need to check the council's weathertight homes records and consider a building inspection.
Healthy Homes Compliance
Rental properties must meet Healthy Homes standards by specific deadlines. Your title won't tell you if the property complies — that's a separate assessment.
Insurance Availability
Some properties are difficult or expensive to insure due to flood risk, earthquake zones, or subsidence. Your title won't warn you — you need to get insurance quotes before committing to a purchase.
The Pre-Purchase Package: Closing the Gaps
A standard Record of Title is just the starting point. To truly understand what you're buying — including what the title doesn't show — you need comprehensive due diligence:
The Pre-Purchase Package ($189.90) bundles together the key documents: Record of Title, Guaranteed Search, Historical Title, Instruments, and Survey Plans. Combined with a LIM report and building inspection, you'll have a complete picture.
For added certainty, a Guaranteed Search ($45.90) confirms the title state as of the search date, giving you confidence that nothing has changed between your initial search and settlement.
FAQ
What does a LIM report show that a title search doesn't?
A LIM report includes council-specific information like building consent history, Code of Compliance status, flood and erosion hazard designations, soil contamination reports, heritage overlays, outstanding rates, proposed zoning changes, and stormwater/sewer connection details. None of this appears on your property title.
Can unregistered interests affect my property purchase?
Yes. Unregistered interests like informal agreements, possessory claims, or unconsented building work can all affect your property rights. While they don't appear on the title, they can be enforced through courts — and they can affect your ability to sell, renovate, or insure the property in the future.
How do I check for building consent issues before buying?
Request the property's building consent history from the local council (usually through a LIM report). Check whether all building work has both consent and a Code of Compliance Certificate. If work was done without consent, you'll need to assess the cost and feasibility of getting retrospective approval — or factor it into your purchase price.
