The title type is the first thing we check on any listing, because it determines whether a bank will lend, what you can change, and who you have to agree with before you change it.
Freehold (fee simple)
You own the land and everything on it, outright. Simplest to finance, simplest to sell, simplest to renovate (council consent aside). If everything else is equal, freehold is the easy answer.
Cross-lease
Common in Auckland and Wellington. You own an undivided share of the whole section together with the other owners, and you lease your particular flat from that group — usually for 999 years.
The catch is the flats plan. If someone has added a deck, a conservatory or a garage that is not shown on the plan, the title is 'defective'. That is fixable, but it takes the other owners' consent and legal work, and it can slow or sink a sale.
- Check the flats plan against what is actually built.
- Understand what needs neighbour consent — often anything structural or exterior.
- Banks will lend, but a defective title can attract conditions.
Unit title
Standard for apartments and many townhouse developments. You own your unit; common areas are owned by the body corporate, which you automatically belong to.
You must be given a pre-contract disclosure statement, and you can request a pre-settlement disclosure statement. Read the body corporate minutes and the long-term maintenance plan — that is where you find out a re-clad is coming.
- Levies are a real, ongoing cost — put them in your affordability numbers.
- Look for a healthy long-term maintenance fund, not just a low levy.
- Some lenders restrict lending on small units (often under 40–50 m²).
Leasehold
You own the building but lease the land, paying ground rent that is reviewed periodically — sometimes brutally. Prices look attractive for a reason.
Many lenders will not lend at all on leasehold, and those that do often want a much larger deposit. For a first home buyer, we treat this as a hard no unless there is an unusual reason.
Company share
Rare and older. You own shares in a company that owns the building, which gives you the right to occupy a flat. Very hard to finance and harder to sell. Avoid as a first home.
The short version
- Freehold is simplest; cross-lease needs the flats plan checked.
- Unit title means levies, minutes and a maintenance plan to read.
- Leasehold and company share are usually finance killers for first homes.
- Always get the title and any body corporate documents before you offer.
General information for New Zealand first home buyers, not financial or legal advice. Rules and lender criteria change — check anything important with your solicitor, your lender or a mortgage adviser. Sources: Land Information New Zealand (LINZ) — record of title; Unit Titles Act 2010 — disclosure requirements.