{"id":784,"date":"2020-12-07T12:21:59","date_gmt":"2020-12-07T12:21:59","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=784"},"modified":"2024-01-18T19:14:59","modified_gmt":"2024-01-18T06:14:59","slug":"indefeasibility-of-title-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/property-and-leasing\/indefeasibility-of-title-new-zealand\/","title":{"rendered":"What is Indefeasibility of Title in New Zealand?"},"content":{"rendered":"\n<p>When you own land in New Zealand, you have certain rights attached to that ownership. However, these rights can be difficult to understand amongst documents full of legal jargon. Understanding what rights and legal protections you have as a landowner is important. These rights determine what you can do if something goes wrong. One of those rights is indefeasibility of title. This article will explain how indefeasibility of title works.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does Indefeasibility of Title Mean?<\/h2>\n\n\n\n<p>When you own land in New Zealand, you own the \u2018title\u2019 of that land. That title is recorded on a central public register governed by the Land Transfer Act (LTA). This title is \u2018indefeasible\u2019, meaning that it cannot be overturned or put aside by competing claims for your land.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Indefeasibility is a crucial part of how New Zealand\u2019s land ownership system works. You receive legal protection against adverse claims to ownership or usage of the land made by other parties without a registered interest if your land is registered.<\/p>\n<\/div>\n\n\n\n<p>For example, if your neighbour tells you they had an arrangement with the previous landowner to use your land, you can confirm this by checking the property register. If there is no evidence of registration, you do not have to legally honour this interest.<\/p>\n\n\n\n<p>There are three critical reasons as to why land ownership works in New Zealand in this way, being:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the register accurately mirrors the reality of who owns the property;<\/li>\n\n\n\n<li>when buying land, purchasers should not have to worry about any hidden interests in the land; and<\/li>\n\n\n\n<li>the state can guarantee the title on the registry and provide for losses due to errors.<\/li>\n<\/ul>\n\n\n\n<p>This register system simplifies the process of dealing with land, as the register takes priority over competing interests, making deals more certain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Do I Register My Interest in Land?<\/h2>\n\n\n\n<p>When you buy new property or gain some other registrable interest, your lawyer will register your interest with Land Information New Zealand (LINZ). They can do this registration online.<\/p>\n\n\n\n<p>For example, consider you are buying a new commercial property. Part of the transfer of ownership will include your lawyer submitting legal documents and notifying LINZ that the registered title has been transferred to your name.&nbsp;<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex 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Here, the court can overturn your ownership. Under the law, this kind of fraud means forgery or any other dishonest misconduct on the part of the registered owner or the registered owner\u2019s agent in acquiring their interest in the land.<\/p>\n\n\n\n<p>For example, <a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/when-is-a-signed-contract-not-binding\/\">forging a signature<\/a> on legal documents when transferring ownership would count as fraud. In that case, the court could order the forger to pay compensation. If they are the registered owner, the Court may strike off their ownership completely.<\/p>\n\n\n\n<p>However, if you have a registered interest in the land and played no part in the fraud yourself, you might receive protection. Factors that would help this include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>completing a thorough customer due diligence process;<\/li>\n\n\n\n<li>taking reasonable steps to verify signatures;&nbsp;<\/li>\n\n\n\n<li>confirming agreements; and<\/li>\n\n\n\n<li>acting reasonably, fairly and in good faith.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Manifest Injustice<\/h3>\n\n\n\n<p>The<em> Land Transfer Act 2017<\/em> has an exception to the principle of indefeasible title. This exception allows the Court to alter the register in instances of \u2018manifest injustice\u2019. \u2018Manifest injustice\u2019 refers to where an outcome is so unreasonably harsh that it requires the Court to step in and reverse the indefeasible title.<\/p>\n\n\n\n<p>When determining whether the Court should alter the register on the grounds of manifest injustice, they will consider a variety of factors, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how the person acquired the estate or interest;<\/li>\n\n\n\n<li>the length of time of ownership of the land;<\/li>\n\n\n\n<li>any improvements that have been made to the land;&nbsp;<\/li>\n\n\n\n<li>the conduct of any persons in relation to the acquisition of the estate or interest.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Forgery or other dishonest conduct is not enough for a \u2018manifest injustice\u2019 to have occurred. Instead, the Court will only exercise their discretion if they consider that <a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/common-remedies-legal-business-cases\/\">compensation or damages<\/a> could not rectify the issue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Registered Interests<\/h2>\n\n\n\n<p>Indefeasibility of title does not protect you against other registered interests on the register. If you buy land and someone else already has a registered interest in it, you have to honour that interest in most cases.&nbsp;<\/p>\n\n\n\n<p>The table below outlines other registered interests in land.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>Registered interest<\/strong><\/td><td><strong>Explanation<\/strong><\/td><\/tr><tr><td>Easement<\/td><td>Easements grant the right for an owner of land to do something on someone else\u2019s land. It is common for there to be easements between neighbours. For example, an easement might provide a right of way for access.<\/td><\/tr><tr><td><a href=\"https:\/\/legalvision.co.nz\/property-and-leasing\/what-is-a-covenant\/\">Covenants<\/a><\/td><td>Covenants are promises that the owner of land makes to others. For example, a covenant might limit how many units you can build on one block of land.<\/td><\/tr><tr><td>Consent notices<\/td><td>A consent notice is a document registered on a title. For example, a consent notice might state that you can only build a dwelling in a certain area.<\/td><\/tr><tr><td>Caveats<\/td><td>A caveat gives the person who registered it the right to protect an existing right they have to the land. For example, a caveat might be registered if you are going through a divorce and your partner owns a piece of land. If you do not own the land but have an interest in it, you might lodge a caveat to prevent the land from being sold.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">M\u0101ori Title<\/h2>\n\n\n\n<p>Some land in New Zealand is owned through a parallel system \u2013 M\u0101ori freehold land. This is land that has never been transferred from M\u0101ori ownership. Therefore, it is not dealt with under this registry system. The M\u0101ori Land Court must approve most dealings with M\u0101ori freehold land.&nbsp;<\/p>\n\n\n\n<p>With two systems running like this, there can be conflicts as to which method of owning land prevails. Under the current law, if you own land using the system given by the LTA, that interest will usually have priority because of indefeasible title.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/08\/19114154\/LegalVision-AU-Landlord-Leasing-Terms-Cheat-Sheet.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Landlord Leasing Terms Cheat Sheet<\/div>\n            <div class=\"body-text\">\n                <p>This cheat sheet explains a number of key clauses and gives practical tips to help avoid disputes.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/08\/LegalVision-NZ-Landlord-Leasing-Terms-Cheat-Sheet.pdf\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Having a land registry system means that dealing with land transactions is simplified. It also provides a degree of certainty to these dealings. If your name is on the title on the property registry, then indefeasibility of title gives you superior property interest against any unregistered interests. However, it is important to note that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>indefeasibility of title does not protect you against other registered interests over your land; and<\/li>\n\n\n\n<li>you are liable if you obtain your interest in the land fraudulently.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you need assistance with your land dealings, our experienced <a href=\"https:\/\/legalvision.co.nz\/leasing-lawyers-lp\">property lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/784\" \/>            <input value=\"https:\/\/legalvision.co.nz\/property-and-leasing\/indefeasibility-of-title-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is Indefeasibility of Title in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you own land in New Zealand, you have certain rights attached to that ownership. However, these rights can be difficult to understand amongst documents full of legal jargon. Understanding what rights and legal protections you have as a landowner is important. These rights determine what you can do if something goes wrong. One of<a href=\"https:\/\/legalvision.co.nz\/property-and-leasing\/indefeasibility-of-title-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;What is Indefeasibility of Title in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13267,"featured_media":65,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"203250,1612,207812,1860,205600,206387","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[11],"tags":[54,65,92,95,2040],"class_list":["post-784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-and-leasing","tag-medium-business","tag-land","tag-indefeasibility-of-title","tag-maori","tag-land-transfer-act"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Indefeasibility of Title in New Zealand? 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