Articles

Understanding Limited Titles

What Is a Limited Title?

If you’re buying or selling a property and notice that the title is marked as “limited,” it’s natural to have questions — and rightly so. What exactly is a Limited Title, and should you be concerned?

 

A Bit of Background

To understand Limited Titles, we need to look back to 1870, when New Zealand introduced the Torrens system — the land ownership system we still use today. This system replaced the old Deeds system, with the goal of making land transfers simpler, more reliable, and guaranteed by the State.

When the Land Transfer Act 1924 required all Deeds-based titles to be converted into the Torrens system, some uncertainty remained about the ownership or the exact boundaries of certain parcels of land. To deal with this, two forms of “limitations” were introduced:

• Limited as to Title – when ownership was uncertain

• Limited as to Parcels – when the boundaries or land area were unclear

By the 1950s, most ownership issues had been resolved, and “limited as to title” became rare. However, limited as to parcels — now commonly referred to simply as Limited Titles — is still in use today.

 

What Does That Mean?

A Limited Title is still a valid, state-guaranteed title — but there is some uncertainty about the exact boundaries of the land it describes. This doubt usually arises from:

• Incomplete or inaccurate historic survey records

• Vague legal descriptions in the original deeds

• Lost or damaged documentation (sometimes due to events like fires)

In many cases, the difference between the recorded title boundaries and what's actually on the ground is small. However, due to this uncertainty, Limited Titles can affect property value and complicate matters when selling or building.

 

Why It Matters

Some buyers may be cautious about Limited Titles, offering a lower price or requesting the limitation be removed before settlement. If you’re looking to build on a limited title, your local council may also require certified boundary information before issuing consents — which may not be possible until the limitation is removed.

 

How Do You Remove the Limitation?

To remove the limitations, you’ll need to engage a Licensed Cadastral Surveyor to:

1. Review historical records, survey plans, and deed documents

2. Carry out a field survey of the land and features like fences, buildings, and boundary markers

3. Consult with neighbouring landowners to confirm the accepted boundaries

4. Place legal boundary pegs

5. Prepare a Land Transfer Survey Plan, which is then submitted to and approved by Land Information New Zealand (LINZ)

This process formally defines the extent of the land, removes the limitations, and gives you full clarity and confidence in your title.

 

Planning to Build or Sell?

If you own a property with a Limited Title and are considering building, selling, or simply want certainty about your boundaries, it’s best to act early. The process of removing limitations can take time, so speaking with a Licensed surveyor is the smart first step.

 

Contact us at Surveying Services for professional advice and support — we’ll guide you through the process and help you gain full confidence in your land title.

< Back