Freehold, Interim and Limited Titles
If you’re thinking about subdividing, developing, or buying property, one of the first things worth checking is the title. Most people think of a title as simply proof of ownership, but it can tell you a lot more than that. The title details potential boundary issues, restrictions, easements, covenants, and other matters that may affect what you can actually do with the property.
Most properties have a standard freehold title, and therefore life is great for those owners. In Hawkes Bay we regularly deal with interim title or limited titles more often than in other parts of the country. Neither type automatically stops a subdivision or development, but they do give early warning that further investigation is required, and sometimes extra survey work is also needed.
Why Hawke’s Bay Sees More of These Than Most
If you own an older, undeveloped section in Hawke’s Bay, and the title includes a reference to an Interim Certificate of Title, you’re looking at a direct legacy of the 1931 Napier earthquake. The earthquake and the fires that followed destroyed a huge number of survey records held in Napier at the time. With the underlying survey evidence gone, there was no practical way to immediately confirm the exact boundaries on thousands of properties across the region.
The government’s solution was the Land Transfer (Hawke’s Bay) Act 1931, which allowed titles to be issued on the basis that ownership was settled, while leaving the description and delineation of the land itself unresolved until better survey information came along in the future. Nearly a century later, we still regularly encounter titles carrying this exact wording:
“This is an Interim Certificate of Title but has by effluxion of time become ‘Conclusive’ as defined by Section 2 of the Land Transfer (Hawke’s Bay) Act 1931, as to all matters except the description and delineation of the land.”
The ownership question was settled decades ago. What’s left open is purely the boundary description, which is exactly the kind of thing that is important to define the moment a subdivision is on the table.
What Is a Freehold Title?
A freehold title, also known as fee simple, is the most common form of property ownership in New Zealand. You own the land and the improvements on it, subject to any registered easements, covenants, consent notices, or planning rules that apply. Freehold titles are generally the easiest to work with because ownership is clear, and boundaries are usually well defined.
What Is an Interim Title?
An interim title means ownership is settled, but there’s some uncertainty around the exact legal description or position of the boundaries. In Hawke’s Bay, this almost always traces back to the 1931 earthquake and the loss of survey records that followed it.
For everyday ownership, an interim title has little effect. However, for subdivision, we need to properly investigate the title history before relying on it, reviewing historical survey plans, existing occupation (for example, fencing and building location), and neighbouring survey and title information. Sometimes everything lines up cleanly. Other times, that investigation requires survey fieldwork to confirm existing boundaries before new lots can be created. The issue is almost never who owns the land, it’s confirming exactly where the boundary sits.
What Is a Limited Title?
A limited title is a different, separate issue, and it isn’t an earthquake legacy. Limited titles were introduced under the Land Transfer (Compulsory Registration of Titles) Act 1924, when large numbers of properties were brought into the modern land title system without a full survey to back them up. The notation “limited as to parcels” means the extent of the land is in doubt, generally because someone else might hold adverse possession over it (occupying an area they aren’t legally entitled to).
Think of it as a title that says: “you own this land, but we’re not fully certain the boundary as described matches what’s actually on the ground.”
Before LINZ will issue new titles from a limited title, the underlying uncertainty generally needs to be resolved. In practice, our survey process for uplifting a limitation as to parcels usually works through three steps:
- Defining the underlying parcel boundaries,
- Excluding any area affected by adverse possession,
- Accounting for any land that needs to come across from a neighbouring limited title.
It’s more involved than a standard subdivision survey, and it can mean additional cost, more investigation time, and closer LINZ scrutiny, particularly where fences or existing occupation don’t line up with the documented boundary.
None of this means subdivision can’t happen. Plenty of limited-title properties get successfully subdivided every year, it just means more groundwork before the development is ready to lodge.
Can a Limited or Interim Title Become a Standard Title?
Often, yes, and this is an upside of going through a subdivision. Completing a proper cadastral survey to define the boundary is exactly what’s needed to remove a limitation as to parcels or resolve an interim title’s description issue. Once LINZ is satisfied the boundaries have been properly established, a guaranteed (freehold) title can be issued. For a landowner, that means the subdivision doesn’t just create new lots, it can also clean up a title issue that’s been present for decades.
Get in Touch
If you’re not sure what type of title your property has, or want to understand what it might mean for a future subdivision, get in touch. We’ll review it, explain what it actually means in relation to your specific property, and let you know what to expect before you commit to a project.
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