Property Law & Conveyancing Glossary
A comprehensive guide to the legal terms you will encounter during property transactions in New Zealand.
A
A&I (Authority and Instruction) Form
The formal document authorizing your lawyer to act on your behalf in dealing with Land Information New Zealand (LINZ) to transfer the property title.
ADLS (Auckland District Law Society)
The organization that produces the standard Agreement for Sale and Purchase of Real Estate used in most New Zealand property transactions.
AML (Anti-Money Laundering)
Statutory compliance audits mandated by the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. Lawyers must verify client identities, corporate structures, and sources of funds before starting any conveyancing transactions.
Apportionment
The mathematical calculation completed by conveyancing solicitors on settlement day to divide property outgoings (such as council rates, body corporate levies, water rates, and advance tenant rent) between the buyer and the seller.
B
Bright-line Test
A tax rule meaning you may have to pay income tax on any profit made if you sell a residential property within a certain timeframe after acquiring it.
C
Certificate of Title (Record of Title)
The official legal record of the property ownership, boundaries, and any registered interests like mortgages or caveats.
Caveat
A legal notice registered against a title to protect a person's unregistered interest in the property, preventing the owner from selling it without notice.
CZR (Compulsory Zero Rating)
Under the GST Act 1985, CZR rules mandate that commercial property transactions be taxed at 0% GST at settlement if both the buyer and seller are registered for GST and the property will be used to make taxable supplies.
D
Deferred Management Fee (DMF)
Also known as the "exit fee," the DMF is the percentage of the entry price (typically 20% to 30%) retained by a retirement village operator to cover communal upgrades and operations upon exit.
Due Diligence
The conditional contract period (typically 10 to 15 working days) during which a buyer investigates all aspects of the property—including LIM reports, builders' structural reports, titles, and finance pre-approvals—before committing.
E
Easement
A legal right granting a person the ability to use a specific part of another person's land for a designated purpose, like a driveway or drainage.
e-Dealing
The electronic submission system operated by Land Information New Zealand (LINZ) that enables authorized solicitors to search, discharge, transfer, and register property land titles online in real-time.
J
Joint Tenancy
A form of co-ownership where all owners hold an equal, undivided share in the property. If one joint tenant passes away, their share automatically transfers to the surviving owners under the principle of survivorship.
L
LIM (Land Information Memorandum)
A comprehensive report issued by the local city council detailing the building consents, rates, land zoning, resource consents, flooding risks, and utility maps associated with a property.
N
NBS (New Building Standard)
The seismic strength standard used for commercial properties in New Zealand. Buildings rated below 34% NBS are legally classified as earthquake-prone and require structural strengthening or demolition under building laws.
O
ORA (Occupation Rights Agreement)
The legally binding contract executed between a resident and a retirement village operator under the Retirement Villages Act 2003, granting the resident a personal license to occupy their unit.
R
Ratchet Clause
A commercial lease term that prevents the rent payable by the tenant from dropping during market rent reviews. Standard ratchet clauses prevent rent falling below either the starting rent or the immediately preceding level.
S
Settlement Day
The date on which the balance of the purchase price is paid, and the buyer is given the keys and legal possession of the property.
T
Tenancy in Common
A co-ownership model where owners hold defined, unequal or equal percentage shares (e.g. 70/30 or 50/50). Unlike joint tenancy, if an owner passes away, their share passes to their heirs under their Will, rather than surviving owners.
U
Unconsented Building Works
Building alterations, modifications, or decks constructed without obtaining a council building consent. These works create significant risks and vendor warranty breaches for sellers.
Unit Title
A property ownership structure (typically used for apartments or townhouses) where residents own their individual unit and hold shared ownership of common areas, governed by a Body Corporate under the Unit Titles Act 2010.
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