Understanding different types of ownership

Fee Simple, leasehold, cross lease, unit title – what does this all mean and how does it affect you?

The simplest form of ownership is a fee simple title otherwise referred to as “freehold title”. Under this form of ownership you are more free to make changes and improvements on the land you own without consideration to others unless there are registered or unregistered interests. Rights and obligations under any instruments on the title such as covenants or easements are important to understand. 

Leasehold is when someone else owns the land. You purchase an exclusive right to possession of the land and the buildings on it for a specific period according to the terms of the lease.

Unit titles are common when there are multiple owners within a development and often come with body corporate memberships with rights and obligations and common areas that need to be understood.  

Cross lease titles can restrict the improvements you want to make on your property unless the other cross lessees agree to the changes. It can also come at more legal cost as flat plans need to be amended on all cross lease titles.  

The following link gives a great explanation of these terms and how they may effect you as a buyer or seller. https://www.settled.govt.nz/buying-a-home/finding-a-proerty/understanding-types-of-ownership