Property Conveyancing Practices for Cross Lease Certificate of Titles

When you are purchasing a Cross Lease property there are matters which your Property Conveyancing Practitioner must undertake on your behalf as the property Purchaser.

A search of the Certificate of Title, Lease and Flats Plan must be completed. The Lease to the Cross Lease Certificate of Title will contain particular terms such as the lenght of the lease generally 999 years with a nominal rent of 10c which is off set against the other property. Any Restrictive Covenants and the exclusive use area for each flat.

The Flats Plan will have the foot print of the flat where it is important to ascertain whether there have been any additions or alterations. If so your Property Conveyancing Practitioner must requisition the defect within the time allowed in the Agreement for Sale and Purchase.

If the Flats Plan does not denote any alterations or additions which have been undertaken since the original Flats Plan was deposited with Land Information New Zealand it will constitute an encroachment into the common property.

“The lease is usually to the outer walls of the flat which are showin on the flats plan” The leasehold estate of a Cross Lease Title relates to the building on the land and the exterior is delineated on the flats plan. The exclusive use area of the flat does not give the owner of the fee simple title to that area, but means that the other flat owners covenant not to enter upon the exclusive use area of the other.

The Agreement for Sale and Purchase allows 10 working days from the date of the Agreement for Requisition to Title so it is imperative that your Conveyancing Practitioner undertakes the relevant searches of the Certificate of Title and encumbrances as soon as possible.

If alterations or additions have been made it is also important to check that the other Flats Owners have consented if required in the terms and conditions of the lease, and any Council Consent or Permit has been signed off. If not further issues and problems arise.

The way in which the Flats Plan can be updated is by a re-survey of the property and a new Flats Plan being lodged with Land Information New Zealand, this will also require Council Consent, Mortgagee consents if mortgages are registered on the Titles, and other Flats Owners. The process is rather expensive and extensive and you should obtain quotes from all parties involved in the dealing.

If you would like further advice regarding Cross Lease Titles or a Property Conveyancing Quote for help with the sale or purchase of your property please visit us @ https://www.propertyconveyancingservices.com/freepropertyconveyancingquote.html

To your Real Estate Success. Cheers Kim