Property Law FAQ NZ 2026: Your Questions Answered
Get clear answers to the most common property law and conveyancing questions in New Zealand. From LIM reports to settlement day, cross-lease to freehold - everything you need to know about buying or selling property.
Lawyers & Conveyancing
What does a property lawyer do vs a conveyancer?
In New Zealand, only qualified lawyers can handle property transactions (conveyancing). Unlike some countries, NZ doesn't have licensed conveyancers as a separate profession.
A property lawyer:
- Reviews the sale and purchase agreement
- Conducts title searches and checks LIM reports
- Handles the transfer of funds on settlement
- Registers the property transfer with Land Information New Zealand (LINZ)
- Advises on easements, covenants, and potential issues
- Ensures all legal requirements are met
Do I need a lawyer for a private sale?
Yes, absolutely. In fact, it's even more important when buying directly from the owner without a real estate agent.
Without an agent, there's no professional ensuring proper processes are followed. Your lawyer will:
- Draft or review the sale and purchase agreement
- Ensure the price reflects market value
- Conduct all necessary searches
- Protect your interests during negotiations
- Handle the legal transfer and settlement
The legal fees are the same as an agent-assisted sale.
How long does conveyancing take?
Standard conveyancing takes 4-8 weeks from when your offer is accepted to settlement. The timeline depends on your negotiated settlement date.
Your lawyer needs time to:
| Review agreement | 1-2 days |
| Conduct searches & review LIM | 3-5 days |
| Satisfy conditions | 7-15 days (typically) |
| Prepare settlement documents | 1-2 weeks before settlement |
| Coordinate with bank & vendor | Ongoing |
Rushed settlements under 3 weeks are possible but not recommended.
Costs & Fees
How much does conveyancing cost in NZ?
Conveyancing fees typically range from $1,200 to $2,500 plus GST for a straightforward purchase or sale.
| Item | Cost |
|---|---|
| Legal fees (standard) | $1,200-2,500 + GST |
| Title search fees | $25-50 |
| LINZ registration fees | $50-100 |
| LIM report | $200-600 |
| AML verification | $50-100 |
| Bank settlement fees | Varies |
| Total (standard) | $1,500-3,500 |
Complex transactions (cross-lease, unit title, subdivisions) may cost $2,500-$5,000+.
How does the deposit work?
The standard deposit in NZ is 10% of the purchase price, paid when the agreement becomes unconditional.
- Held in a trust account (usually the real estate agent's or vendor's lawyer's)
- If you fail to settle without valid reason, the vendor may claim the deposit
- If the agreement is cancelled due to a valid condition (e.g., finance), your deposit is refunded
- Some vendors accept 5% deposits, but 10% is standard
- The deposit forms part of your purchase price at settlement
Tip: Never pay a deposit directly to the vendor - always through a trust account.
When do I need to pay my lawyer?
Most property lawyers invoice on settlement day:
- If selling: Fees deducted from the sale proceeds
- If buying: Fees added to your required settlement funds
- Some lawyers request disbursements (searches, LINZ fees) upfront
- Agreement review fees may be invoiced when the agreement goes unconditional
Always confirm the fee structure and payment expectations with your lawyer at the start.
Buying Process
What are the steps in buying a house in NZ?
The typical house buying process:
- Get finance pre-approval from your bank or mortgage broker
- Find a property and make an offer (sign sale and purchase agreement)
- Pay deposit (usually 10%)
- Satisfy conditions - finance, building inspection, LIM, due diligence
- Agreement goes unconditional - you're now committed
- Your lawyer prepares for settlement
- Sign loan documents with your bank
- Settlement day - funds transfer, you get the keys
- LINZ registers you as the new owner
The whole process typically takes 4-8 weeks from offer to settlement.
What are chattels in a property sale?
Chattels are moveable items included in the sale - they're not 'fixed' to the property.
Typically included:
- Stove and dishwasher
- Fixed floor coverings
- Blinds and curtains
- Light fittings
- Heat pumps
- Garage door remotes
Usually NOT included:
- Fridges and freezers
- Washing machines and dryers
- Freestanding furniture
Always check the chattels list carefully and do a pre-settlement inspection to verify everything is there and working.
Title & Ownership Types
What is a title search?
A title search is an official record from Land Information New Zealand (LINZ) showing:
- Current owners of the property
- Legal description of the land
- Mortgages or caveats registered on the title
- Easements (rights others have over the property)
- Covenants (restrictions on use)
- Title type (freehold, cross-lease, unit title)
Your lawyer will conduct a title search and explain anything that could affect your purchase.
What is cross-lease vs freehold vs unit title?
Freehold (Fee Simple)
You own the land and buildings outright. This is the most straightforward ownership type with the fewest restrictions.
Cross-Lease
You own a share of the underlying land with other owners and lease your 'flat' area from the collective. Common for older townhouses. Important: Changes (even decks or additions) may require neighbours' consent and an updated flats plan.
Unit Title (Strata Title)
You own your unit plus a share of common property. Governed by a body corporate with levies and rules. Common for apartments and newer townhouse developments. You'll pay ongoing body corporate levies.
Each has different implications for renovations, insurance, and ongoing costs - always discuss with your lawyer.
What are covenants and easements?
Covenants are restrictions on what you can do with your property:
- Building materials or colours
- Fence heights
- Types of structures allowed
- Business activities prohibited
Common in newer subdivisions and can be very restrictive.
Easements are rights over property:
- Right of way: Access across your property
- Drainage: Pipes running through your land
- Utility: Power, water, or telecommunications
Both are registered on the title and 'run with the land' - meaning they apply to all future owners.
Settlement
What happens on settlement day?
Settlement day is when ownership officially transfers. Here's what happens:
- Your lawyer receives funds from your bank
- Funds are combined with your deposit
- Full purchase price is transferred to the vendor's lawyer
- Once funds are confirmed, keys are released
- The property transfer is authorised with LINZ
Settlement typically occurs between 1-4pm.
Important: Don't arrange moving trucks until your lawyer confirms settlement is complete. If issues arise, settlement may be delayed to the next business day.
What happens if settlement is delayed?
If settlement is delayed, the party at fault typically pays penalty interest:
- Usually 10-14% per annum on the purchase price
- Calculated for each day of delay
- After significant delay (usually 10+ working days), the other party may cancel
Common causes of delay:
- Bank funding issues
- Problems with the vendor's title
- Issues discovered at pre-settlement inspection
Your lawyer will negotiate on your behalf and advise on options if delays occur.
Due Diligence & Reports
What is a LIM report and do I need one?
A Land Information Memorandum (LIM) is a report from the local council containing all information they hold about a property:
- Building consents and code compliance certificates
- Rates information
- Drainage and water connections
- Zoning and district plan rules
- Flood zones and erosion risks
- Any council notices
Cost: $200-600 depending on the council.
You should always get a LIM before buying. It can reveal unpermitted building work, natural hazards, or issues that could affect your use of the property. Your lawyer will review it for red flags.
What is due diligence in property?
Due diligence is investigating the property before committing to buy. Key due diligence includes:
| LIM report | Council records and consents |
| Title search | Ownership, restrictions, easements |
| Building inspection | Structural condition |
| Valuation | Market value assessment |
| Hazard zones | Flood, earthquake, erosion risks |
| Body corporate records | For unit titles |
| Resource consents | Any development approvals |
| Tenancy arrangements | If property is rented |
Most sale agreements include a due diligence condition giving you 10-15 working days to complete these checks and cancel if issues are found.
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