Technically the term freehold land refers to land free of any encumbrances such as mortgages. However
common usage over time now means that Fee Simple and freehold are terms which are used interchangeably.
The concept of freehold land (estate in fee simple) has its origins dating back to feudal times. Fee Simple is
considered to vest in the private citizen the greatest group of rights in the use, enjoyment and alienation (i.e. the
power to dispose) of the land allowed by law. In other words it is the highest form of personal ownership of land
allowed under the New Zealand legal system.
Fee simple ownership has many practical advantages. Provided it is permitted by the Local Authority by way of
the district plan, homeowners have the autonomy to make extensions and/or additions to their dwellings
without changes to the title, and without the consent of neighbours. These activities are a particular problem
with other title types.
Fee Simple owners can also bind subsequent owners of a property through registering positive or restrictive
covenants upon the certificate of title. For example an owner might sell off part of a property but place a
restriction on the incoming owner and subsequent owners to preserve a view by limiting the height or location
of any new dwelling to be built on the alienated land.
common usage over time now means that Fee Simple and freehold are terms which are used interchangeably.
The concept of freehold land (estate in fee simple) has its origins dating back to feudal times. Fee Simple is
considered to vest in the private citizen the greatest group of rights in the use, enjoyment and alienation (i.e. the
power to dispose) of the land allowed by law. In other words it is the highest form of personal ownership of land
allowed under the New Zealand legal system.
Fee simple ownership has many practical advantages. Provided it is permitted by the Local Authority by way of
the district plan, homeowners have the autonomy to make extensions and/or additions to their dwellings
without changes to the title, and without the consent of neighbours. These activities are a particular problem
with other title types.
Fee Simple owners can also bind subsequent owners of a property through registering positive or restrictive
covenants upon the certificate of title. For example an owner might sell off part of a property but place a
restriction on the incoming owner and subsequent owners to preserve a view by limiting the height or location
of any new dwelling to be built on the alienated land.
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| Fee Simple (freehold) Title |
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Innovation + Experience |
| PO BOX 9018, Wellington 6141 | phone: (04) 240-0124 | fax: (04) 232-4414 | email: valuer@ vcnz.co.nz Innovation + Experience |