Land ownership in New Zealand is governed by a public, centralised land registration system. When you own land in New Zealand your ownership is recorded on a ‘Record of Title’.
In the realm of property law, a person who claims to have an interest in land can register a caveat on the Record of Title for that land. A caveat is a ‘red flag’ that a person has, or claims to have, an interest in that land and will prevent the land from being sold, mortgaged or otherwise dealt with, without the knowledge or consent of the person who has registered the caveat.
Registration of a caveat can protect your interests (and investment) if, for example, you have a long-term settlement under an agreement for sale and purchase, or if you are owed a debt. Registration of a caveat is a proactive step that can determine the difference between being in the driving seat of negotiations and trying to close the stable door once the horse has bolted. However, you may be liable to the owner if you register a caveat and do not have a valid interest in the land.
See us today to discuss your options!
By Carly Christie | Senior Solicitor
The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter.