New Zealand uses the torrens system of land registration. All parcels of real estate are registered and the information is searchable by the public for a nominal fee. The torrens certificate contains information regarding the land and improvements as well as ownership information and encumbrances on the land.
Transaction information is compiled by governmental agencies and private firms. These data are publicly available upon payment of a fee.
Real Estate Institute of New Zealand
P.O. Box 5663
Auckland
New Zealand
Phone: 649 379-8008
Fax: 649 379-8471
E-mail: reinz@reinz.co.nz
Internet: http://www.reinz.co.nz
The Real Estate Institute of New Zealand was founded in 1915 and currently has more than 3,800 members. The Real Estate Institute of New Zealand is an international affiliate of the National Associations of Realtors.
Land and improvements erected on land are considered real property under New Zealand law. The government retains certain rights in land such as the ability to levy property taxes, however in 1991 land taxes were repealed, control the use of private land through zoning and take property for valid public purposes under the right of eminent domain.
Ownership of certain types of real estate by non-resident foreigners is restricted. Purchases of farm land, environmentally sensitive lands and off shore islands require prior consent of the land valuation tribunal.
Spouses may hold title to real property separately. However, the primary residence of a husband and wife is considered community property with the right of survivorship upon the death of either spouse.
Leases are largely unregulated and simply governed by the agreement of the parties. Leases may be registered but most often they are not. Special provisions may apply for leases over 20 years which may be deemed subdivisions.
Ownership of real property in New Zealand may be by individuals (severalty) or by more than one person (concurrence). Corporations and partnerships are capable of acquiring, holding and conveying real property in New Zealand. Partnerships can have no more than 25 partners except in limited instances. "Special Partnerships" are similar to limited partnerships in that the "special partners" are not responsible for debts of the partnership. Each special partnership must have at least one general partner.Joint venture and trusts may also own real property in New Zealand.
Deeds are used to convey ownership of real property in New Zealand. Deeds must be signed by the grantor and voluntarily delivered to the grantee. corporate deeds require a seal and in many cases acknowledgment by a notary. Real property may be conveyed after death via a written will or, if a property owners dies in-state, by operation of law. If a property owners dies in-state and with no survivors then property will escheat to the government. Title to real property may be gained through the process of adverse possession provided however that such possession was open notorious and uninterrupted for at least 20 years.
New Zealand has a land title system based on the torrens system of land registration. There are land registration districts throughout New Zealand and titles must be registered in the district where the property is situated. The register is designed to be relied upon and registration provides conclusive proof of ownership and related matters affecting title. Under the torrens system, there is no need for title insurance or abstracts.
A valid contracts for the purchase and sale of real property in New Zealand must be in writing. Attorneys (solicitors) will often prepare contracts for larger transactions or review those contracts for smaller transactions. New Zealand is a common law country and in most instances, the law of contracts is similar to that of England and the U.S. Real estate agents may prepare contracts for the sale and purchase of land. Contracts for the sale of real property do not need to be notarized and may be prepared by real estate agents in New Zealand.
Property Taxes:
Ad valorem taxes on land were repealed in 1992. Stamp duty is payable on all conveyances of real property as well as real property leases. Stamp duty on real property conveyances equal 1% up to $50,000, 1.5% between $50,000 and $100,000, and 2% over $150,000. Real property leases carry a stamp duty of $.40 per $100.00 in annual gross rent. Profits delivered by entities dealing in the sale or disposition of real property with the intent to make a profit are subject to tax. Usually personal residences are not subject to tax on sale. There is no capital gains tax in New Zealand.
Settlement procedures are regulated in New Zealand. Closings typically occur within 60 days of contract execution.
Land Use & Control:
Zoning is used in New Zealand as a tool of government to control the use of privately owned land. New Zealand has national planning documents which are intended to promote environmental standards as well as protect coastal areas. Subdivision regulations control how land may be converted into building lots while local zoning ordinances provide for specific permitted and prohibited land uses and the separation of incompatible land uses. Zoning in New Zealand is implemented in accordance with long range regional planning efforts.
Real property may be mortgaged as security for a debt in New Zealand. Mortgages are required to register mortgages with the Registrar of Companies. The order of registration determines priority of the mortgage. Actual ownership is not transferred under a mortgage, only a pledge or hypothecation. Mortgages contain power of sale remedies and provisions for a mortgagee to enter and the possession of a property upon default an notice. Notice must be at least 4 weeks, and mortgagors retain rights of redemption.
Fixed rate loans of greater than 60% of value and terms in excess of ten years are common in New Zealand. The typical source of mortgage financing are banks and institutions.
Administaror