What are the different types of Title Estates in New Zealand under the Torrens System?

1. Fee simple – This is the largest interest which can be held in land next to the Crown. In effect this type of ownership is not limited by time and continues indefinitely. It carries rights representative of absolute ownership of property. Such rights include disposing of the land by sale, gift or generally whatever the owner wishes. But do remember if you were to find minerals, gems or other lucrative mines of wealth in the soil. This would be claimed by the Crown and you compensated accordingly.
2. Life estates – Generally speaking this type of interest is limited to the life of a tenant of an estate. It is normally used in family situations where a person wishes to divest themselves of the ownership of the property during their lifetime, but retain the right to use of the property. A Deed would be registered against the Title to protect the right.
3. Leashold estates – This is where the owner being the Lessor grants an exclusive right of possession of the land for a period of time on certain terms to another party being the Lessee. For the lease to be valid it must specify the time to run, property affected by the lease and exclusive possession. This type of lease would be registered against the Title.

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