New Zealand’s Land Registration System
Land ownership in New Zealand is based on the 'Torrens System' of land registration. The system was first
developed in South Australia by R. Torrens in 1858. It was introduced to New Zealand in 1860. The Deeds System
and Torrens System of land registration ran concurrently from 1860 until all land dealings finally came under the
current system by authority of the Land Transfer Act 1952.
The Torrens system provides a public register recording all material facts relative to the title. Once as registration
is accepted the state guarantees what is called an 'indefeasible' title.
The major advantage of the system is that anybody dealing with land in New Zealand is saved the effort of
investigating back to the root of the title, and is able to rely on the details on the face of the register.
This is a distinct advantage over the old Deeds System, which is still in use in the US, UK and elsewhere. Under
the Deeds System you could loose your land rights if somebody popped out of the woodwork with a valid claim of
prior ownership. Thus dealing with land transfer under the Deeds system is a much lengthier and expensive
process where it is incumbent on the lawyer acting on behalf of the purchaser to research the deeds and various
previous transfers and interests, to ensure the above does not occur.
Limitations to Indefeasibility of Title
Where a title has written on it ‘Limited as to Parcels’ or ‘Limited as to Title’ or both, it means that when the land
was brought into the system under the Land Transfer Act 1952, the Land Registrar was not satisfied with some
aspect of the transfer.
Limited as to Parcels means that an aspect such as the physical coordinates, area or boundaries of the land were
uncertain and therefore not fully guaranteed. Usually this limitation can be removed upon completion of a resurvey.
Limited as to Title means that the proprietor’s ownership is not guaranteed. This arises when the Land Registrar
was not satisfied that the proprietor was in possession of the land when it was brought under the Land Transfer
Act 1952. This limitation can be removed with the surrender of all outstanding instruments affecting the title
together with a statutory declaration of ownership.
When the above limitations have been removed then a fully guaranteed ‘indefeasible’ title can be issued.
Doctrine of Eminent Domain
The crown retains the Allodial Estate or absolute ownership of all land to which the ownership rights of individual
citizens are subservient. This Allodial Estate is expressed by the Crown’s power to resume privately owned land
under the Doctrine of Eminent Domain. The Crown sometimes exercises this right under the Public Works Act
where privately owned land is taken for public uses, although unlike in feudal times, fair compensation is now paid
and they rarely burn villages or make off with the livestock to speed up the process.
Co-Ownership (tenants in common & joint tenancies)
There are two main forms of co-ownership being (i) joint tenancies and (ii) tenancies in common. In neither case
does the tenant have an exclusive claim to any specific part of the land owned in common, although this has been
somewhat modified in practice in cross lease developments where the land used exclusively by one owner is
delineated on the flats plan with the lease stating the occupation rights.
(i) Joint Tenancies
These are between statutorily related parties, for example a married couple. The main feature that defines a Joint
Tenancy is the right of survivorship. Upon the death of a joint tenant, the joint tenant’s shares devolve to the
survivor. If during his/her life a joint tenant disposes of his or her interests to another person then that person
receiving a share of the land becomes a Tenant in Common with the other joint tenants.
(ii) Tenants in Common
Tenants in common hold the land concurrently with other owners and have an undivided but defined share. The
tenant in common can deal with his/her interests separately by disposing of it by will after death or by transfer
when alive.
Land ownership in New Zealand is based on the 'Torrens System' of land registration. The system was first
developed in South Australia by R. Torrens in 1858. It was introduced to New Zealand in 1860. The Deeds System
and Torrens System of land registration ran concurrently from 1860 until all land dealings finally came under the
current system by authority of the Land Transfer Act 1952.
The Torrens system provides a public register recording all material facts relative to the title. Once as registration
is accepted the state guarantees what is called an 'indefeasible' title.
The major advantage of the system is that anybody dealing with land in New Zealand is saved the effort of
investigating back to the root of the title, and is able to rely on the details on the face of the register.
This is a distinct advantage over the old Deeds System, which is still in use in the US, UK and elsewhere. Under
the Deeds System you could loose your land rights if somebody popped out of the woodwork with a valid claim of
prior ownership. Thus dealing with land transfer under the Deeds system is a much lengthier and expensive
process where it is incumbent on the lawyer acting on behalf of the purchaser to research the deeds and various
previous transfers and interests, to ensure the above does not occur.
Limitations to Indefeasibility of Title
Where a title has written on it ‘Limited as to Parcels’ or ‘Limited as to Title’ or both, it means that when the land
was brought into the system under the Land Transfer Act 1952, the Land Registrar was not satisfied with some
aspect of the transfer.
Limited as to Parcels means that an aspect such as the physical coordinates, area or boundaries of the land were
uncertain and therefore not fully guaranteed. Usually this limitation can be removed upon completion of a resurvey.
Limited as to Title means that the proprietor’s ownership is not guaranteed. This arises when the Land Registrar
was not satisfied that the proprietor was in possession of the land when it was brought under the Land Transfer
Act 1952. This limitation can be removed with the surrender of all outstanding instruments affecting the title
together with a statutory declaration of ownership.
When the above limitations have been removed then a fully guaranteed ‘indefeasible’ title can be issued.
Doctrine of Eminent Domain
The crown retains the Allodial Estate or absolute ownership of all land to which the ownership rights of individual
citizens are subservient. This Allodial Estate is expressed by the Crown’s power to resume privately owned land
under the Doctrine of Eminent Domain. The Crown sometimes exercises this right under the Public Works Act
where privately owned land is taken for public uses, although unlike in feudal times, fair compensation is now paid
and they rarely burn villages or make off with the livestock to speed up the process.
Co-Ownership (tenants in common & joint tenancies)
There are two main forms of co-ownership being (i) joint tenancies and (ii) tenancies in common. In neither case
does the tenant have an exclusive claim to any specific part of the land owned in common, although this has been
somewhat modified in practice in cross lease developments where the land used exclusively by one owner is
delineated on the flats plan with the lease stating the occupation rights.
(i) Joint Tenancies
These are between statutorily related parties, for example a married couple. The main feature that defines a Joint
Tenancy is the right of survivorship. Upon the death of a joint tenant, the joint tenant’s shares devolve to the
survivor. If during his/her life a joint tenant disposes of his or her interests to another person then that person
receiving a share of the land becomes a Tenant in Common with the other joint tenants.
(ii) Tenants in Common
Tenants in common hold the land concurrently with other owners and have an undivided but defined share. The
tenant in common can deal with his/her interests separately by disposing of it by will after death or by transfer
when alive.
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| Historical & Legal Background to New Zealand Property Ownership |
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| PO BOX 9018, Wellington 6141 | phone: (04) 240-0124 | fax: (04) 232-4414 | email: valuer@ vcnz.co.nz Innovation + Experience |
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