Many purchasers, when searching for their dream home or section, may not be aware that there could be various restrictions on the use of the land that they intend to purchase. These restrictions can impact on the use and enjoyment of a property.
Some common restrictions on the use of land include:
Restrictive Land Covenants - Some titles are subject to restrictive land covenants which impose restrictions ranging from the type of building materials that can be used in the construction of a dwelling, the kind of structures that can be stored on the land (e.g. prohibiting caravans, tents, and/or boats), to the number and types of animals that can be kept on the land. These types of covenants, which are often used by developers to maintain a minimum standard of building throughout a subdivision, can affect the look and feel of a subdivision, the build, and building costs.
Consent Notices - Some titles are subject to Consent Notices under the Resource Management Act. Consent Notices generally record that a subdivision consent was granted by Council on the basis that certain conditions be complied with. These conditions, among other things, can place restrictions on how landowners use their land. For example, a Consent Notice may restrict where buildings can be erected on the land in relation to stormwater pipes etc.
Residents' Associations - Some titles oblige owners to join residents’ associations. The purpose of residents’ associations is primarily to raise levies and to create and enforce rules and bylaws. Some of the more 'controversial' rules and bylaws that we have seen include rules around where residents can hang their laundry, where aerials and air-conditioning units can be placed, and what colour houses can be painted.
Easements - Some titles are subject to easements. Easements are rights agreed between a landowner and another party to use land for a particular purpose (e.g. a right of way or a right to convey water). There are usually restrictions around what landowners can do on easement areas which can include a prohibition on building structures or allowing vegetation to grow on easement areas.
Zoning / Unitary Plan / District Plan - Zoning rules affect how properties are used, developed, and/or protected. The zone a property falls into can impact what can be built on the land, the height of buildings on the land, and what the property can be used for.
We are here to help
A house is the biggest asset that most kiwis will own. Therefore, it is important that you know what you are signing up for (and in particular to be aware of any restrictions on the use of the land that you are intending to purchase).
Our experts are here to help – whether that be by ensuring that your agreement has the necessary conditions to allow you to undertake due diligence or by reviewing and advising on the record of title, the Land Information Memorandum, and/or the property file. Get in touch today.
