Legal Considerations When Dealing with Cross Lease Properties

Cross lease properties are a prevalent form of property ownership in Auckland, yet it can be a challenge to understand the various ins and outs of legal considerations for this type of property ownership.

As with any kind of property ownership, it’s essential for you to understand the legal qualities of your property to avoid disputes, complications and potential trouble. It’s important to be aware of the shared responsibilities and rights associated with your land, as failure to do so can lead to frustrating misunderstandings with neighbours. 

What Is A Cross Lease Property? Understanding This NZ Property Type

This is perhaps one of the most complicated types of property ownership in Aotearoa, so researching legalities before you purchase, sell or alter your title is a must. Essentially, these properties are shared ownership arrangements where multiple owners lease parts of the same land. 

When you become an owner of a cross lease property, you share ownership of that same, larger piece of land with the other owners of that space. Even if you have your own home and your neighbours have your designated areas, the entire plot of land is still owned by everyone. However, it’s important to note that there are still common areas and private areas to ensure the privacy and comfort of individuals living on the land. 

If you own or are interested in purchasing a cross lease property, here’s what you should know:

• Shared Responsibilities. Because of the shared ownership aspects, everyone collectively has a responsibility to maintain shared areas. It’s essential to work out who does what and when if you are living on a cross lease property.
• Lease Agreement Terms. It’s absolutely vital that you thoroughly read through the lease agreement if you want to be a responsible owner. The lease agreement will highlight the rights, responsibilities and restrictions of owners. Breaching these terms, even if by accident, can lead to issues and upset neighbours. One common issue with these properties is understanding the boundary lines of common spaces and different homes.
• Requirements From Neighbours For Changes. Because everyone owns the land collectively, this means you may have to speak to your neighbours about changes you’d like to make to your property. Even if you are only altering your own home and aren’t affecting shared spaces or other properties, you may still have to speak to your neighbours to gain their consent on your plans. This can include changing your home itself, your fences, your landscaping or other qualities of your space. 
• Requirements From The Council For Changes. Please note that some alterations may also need council approval to ensure compliance with NZ building regulations. Always check if your plans are compliant with the NZ building code before you start any work. 

What if you already have shared ownership of a cross lease property, but you’d like to change your arrangement? Cross lease conversions allow owners to transition a property into independent freehold titles.

When you convert your shared property into freehold titles, the land will be divided into smaller, independent lots. This allows each property owner to do what they want with their land, simplifying ownership and granting each owner more freedom.

It’s important to know that this process can be rather complex, and consent must be obtained from all owners involved. You will need to speak with each of the land’s owners to make sure everyone is on board. You will also need council approval for your plans.

How We At Fluker Surveying Can Help

When converting a cross lease title, it’s important to properly outline boundaries and divide the land in a way that’s cohesive, fair and sensible for everyone involved.

• Land Development Expertise. We have extensive experience with land development projects, including cross lease conversions. We can assist you with the various legal aspects of the job, including gaining council consent. Our team specialises in assessing land development possibilities and providing practical, cost-effective solutions that will satisfy everyone. 
• Re-Surveying And Re-Certifying Site Plans. Many older properties have outdated site plans, which can lead to inaccuracies in boundaries and different sections of the land. We can survey your land to update and re-certify your plans to align with modern standards. Whether you want to divide and convert your land or you want to keep your cross lease property as it is with an updated site plan, we’re here for you. 
• Dispute Resolution. We understand that disputes can arise in nearly any circumstance, and we’re here to help. We will do what we can to find a satisfying solution for everyone. 

Properly Handling Your Cross Lease Property With Fluker Surveying

So, how can we help? We welcome you to visit our website to learn how we can service you. Or, you can call us directly on 09 427 0003 or use our contact page to get in touch.

Fluker Surveying: Local Auckland surveyors and land development experts you can trust.