Causes of Concern
Some property titles contain terms that should raise a flag and warrant further investigation with your lawyer. These can restrict what you can do with the property or indicate potential legal or planning complexities.
Covenants
A covenant is a legal agreement between the landowner and an authorized body, like a residents’ society or the council. It outlines the rights and responsibilities of each party and is registered on the title, binding both current and future owners. Some covenants are highly restrictive—they can limit things like painting your house certain colours or even hanging laundry outside. Always read and understand the covenant fully before proceeding.
Limited as to Parcels
This indicates a defective title, where the property’s area is not guaranteed by the Crown. If you see this, stop and send the title to your lawyer for review. Refer to https://www.linz.govt.nz/kb/781
Encumbrance
An encumbrance restricts certain actions on the property. This could range from minor issues, such as an Auckland Transport height restriction, to more serious limitations. Always have your lawyer review any encumbrances.
Special Overlays
Auckland Council uses special overlays to guide development or protect historical areas. Some overlays may limit what you can do with your property, while others are primarily cosmetic.
Special Character and Heritage Overlays
Properties within a special character or heritage overlay are required to maintain certain architectural styles, density, and street frontage. Common in inner suburbs like Grey Lynn and Ponsonby, these overlays preserve 1920s-era features and other heritage elements, such as chimneys or roof styles. This can be ideal if you appreciate historic aesthetics, but it may restrict major renovations, extensions, or other significant changes to the property.
Significant Ecological Overlay
Significant ecological overlays are areas of significant indigenous vegetation or habitats of indigenous fauna located either on land or in freshwater environments. These are usually found near water, streams, and the Waitakere Ranges. Speak to a council planner for more information if you’re buying in this zone, as this will impact the activities you can do, and the trees and pets you may be able to keep.
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