What Is a Deficient Cross Lease Title?
Cross lease titles—in which multiple people own an undivided share of land—can be confusing. To keep things straight, the property must match the cross lease flats plan. But what happens if it doesn’t?
What is a Deficient Cross Lease Title?
A deficient title is when the onsite buildings, decks, and exclusive use areas don’t match those on your cross lease flats plan.
This could cause potential issues in gaining property insurance or securing lending against your property. If you plan on selling your property, having a deficient title could cause uncertainty for buyers, potentially reducing the number of buyers or lowering the sale value.
How do I tell if my title is deficient?
Your title documents will often say if they are deficient or not.
You can make a comparison of the cross lease flats plan with the buildings onsite. Sometimes this is easier when done from a bird’s eye view. This can be done by searching the property on google maps and turning on photos, or via Auckland Council’s GIS Viewer.
If you are still unsure, contact one of our team to review your site.
Does it matter if it is deficient?
It is recommended that your cross lease flats plan and cross lease property title document are both up to date. These legal documents outline the areas of your property which you exercise exclusive use over, and having these up-to-date removes any potential for uncertainty with your co-lease holders. They also need to be up-to-date if you plan to sell the property.
How can I remove the deficient nature of the title?
You can amend your deficient title by updating the cross lease flats plan and property titles to reflect the current building arrangements.
The process is summarised below:
1. Council Consent Application
We survey your property fixing the buildings onsite, taking this information to prepare the updated cross lease flats plan. With the updated flats plan, we prepare a minor resource consent application and lodge this with council.
2. Completion Conditions
With an approved consent, we can generally lodge for 223 and 224F certificates straight away. The 223 certificate confirms that the flats plan matches that approved by council, while the 224F confirms that all consent conditions have been complied.
3. Survey Plan and Titles Documents Lodged
With the 223 and 224F certificates from council, we can lodge the survey plan with LINZ for review and approval. Your solicitors can also lodge the updated title documents with LINZ.
The process above can take around four months to complete but is mostly dependent on council and LINZ processing times.
For a free fee proposal, please contact our team!