# Causes of Concern

Some titles will have words that should cause concern and warrant further investigation and advice from your lawyer. This includes:

## Covenants

A *covenant* is a legal agreement between a landowner and an authorized body like a residents society or the council. The agreement outlines the rights and responsibilites of each party. It is registered on the title and binds current and future landowners.

Be sure to fully understand the covenant and what it means for you. Some covenants are quite restrictive and mean you can't do things like hang out your laundry outside, or even restrict you to painting your house in specific colours. &#x20;

## Limited as to Parcels

Limited as to Parcels means the title is defective, and the property’s area is not guaranteed by the crown. You should stop here and send the document to your lawyer for further review. Refer to [https://www.linz.govt.nz/kb/781 ](https://www.linz.govt.nz/kb/781)

## Encumbrance

An encumbrance restricts what you can do on the property in some way. This could be as trivial as an Auckland Transport height restriction, through to something far more serious. You should stop here and send the document to your lawyer for further review.

## Special Overlays

Special overlays are used by Auckland Council to denote and encourage development and retain history. These overlays can be a good or bad thing depending on your mindset. A good example is the special character overlay (which we’ll discuss next).

## Special Character Overlay

Within this overlay the properties are determined to be of a certain type, and are required to comply with council overlay regulations such as density, street frontage, and maintain a certain style. A great example are the inner suburbs such as Grey Lynn and Ponsonby – you’ll notice all the properties retain a certain 1920s look. These areas are great if you enjoy the look, not so great if you intend to do certain types of work on your property or want to become a property tycoon in the future.

## Heritage Zone Overlay

Heritage zones are there to protect Auckland’s heritage. These zones are usually seen in the inner suburbs like Grey Lynn and Ponsonby. They are similar to the special character overlay, but generally also encompass certain features such as needing a chimney, etc. The overlay usually takes over.

## 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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\[1] <https://www.linz.govt.nz/kb/781>
