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 lodge a caveat against the Record of Title pertaining to 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 lodged the caveat.
Lodging 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. It is a proactive step that can be the very difference between recovering funds owing or missing out altogether. However, care must be taken; You may be liable to the registered owner if you lodge a caveat (preventing a sale or another transaction) and it transpires that you do not have a valid interest in the land.
Please do not hesitate to contact us to discuss options available to you.
By Brittany Ivil | Senior Associate | 07 571 7960 | brittany@bchlaw.co.nz
The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter.
