Glossary

Body Corporate
Where your property has a unit title, there will be an administrative group called “the body corporate” that is responsible for the management, administration and use of all the units in the common property the make up the whole building. Each unit owner is a member of the body corporate and each has a share of voting rights, where votes are taken to decide body corporate matters.

Cross Lease Title
A particular type of property ownership in which you own a share in the underlining land and have a long term lease of your flat.

Caveat
There are many types, but in this context usually a notice which is registered on the Certificate of Title at LINZ, that someone, apart from the owner of the land, has a interest in the property.

Easement
An easement is a right given by the present or previous owner of a property, in favour of another property (e.g. a right to convey electricity or water)

Right of Way
This is a right allowing access over a property.

Unit Title
Where you have a unit title, you will own either a leasehold or freehold “stratum” estate they will also own the “common property” together with the other owners in your building / complex. See Body Corporate.

Land Information

New Zealand (LINZ)
The government agency which regulates administrative control of land in New Zealand.

Land Information

Memorandum (LIM)
A LIM report is available from the local Council and contains information in relation to your property; for example, details of the owner, zoning, any applications to build on the property, flooding, archaeological interests.

Guaranteed Search
A guaranteed search is a protection for the purchaser. If a purchaser obtains a guaranteed search within 13 days prior to the settlement date and an instrument is registered against the title which prevents the purchaser from registering their ownership of the property, is not recorded on the guaranteed search, then the purchaser may make a claim against the crown for damages.

Fixture
A fixture is something that forms a integral part of the house that is fixed or attached to the house and is not easily removed, e.g. stand alone fire place that is cemented to the floor or a hot water cylinder.

Chattels
A chattel is something that is easily removed from the house, e.g. curtains or a dishwasher. Chattels to be included in the sale are listed in the agreement for sale and purchase and other furniture. If there is an particular or unusual chattel at the house property that is of importance to either party this should be stipulated on the contract. (eg chattels do not include the chandelier hanging in the lounge room).

Insurance Certificate of Currency
This is a certificate from the insurance company confirming that house insurance policy has been arranged for the property. It is of particular interest to banks when the purchaser is using mortgage monies to buy a house. The certificate should note the interest of the bank as first mortgagee.

Cash Buyer
A cash buyer is someone who will not be requiring a mortgage to buy a house and most often makes an unconditional offer for the purchase.

Unconditional Offer
An unconditional offer is an offer to purchase a property with no conditions attached to it.

Solicitors Certificate
A certificate to the bank confirming that all bank documents have been completed correctly and disclosure has been made to the borrowers. An assurance to the bank that its interest have been protected and the advance be confidently made to the purchaser.

Mortgage
A document registered on the title to a property noting the bank’s interest. If the borrower falls behind in payments, the bank may force the sale of the house to ensure it gets its money back. The house is security for the loan advance (mortgage).

Settlement Statement
A statement showing how much the purchasers have to pay on settlement day to complete the purchase. It includes a portion of the rates for the current quarter as well as the balance of the purchase price following payment of the deposit.

Sale Notices
Forwarded to the local Council to advise them of the change of ownership so that rates records can be altered.