Many older villas and bungalows will have a limitation as to parcels noted on their title.
This is especially prevalent in older suburbs like Ponsonby, Freemans Bay and Herne Bay. Often this has arisen because when land was first bought under the current ‘Torrens’ title system, there wasn’t enough survey information.
What does ‘Limited as to Parcels’ mean?
If a property title is limited as to parcels, it means the exact boundaries are not guaranteed. In other words, the boundaries on the title might differ to what is on the ground.
Those titles where the boundaries could not be guaranteed were tagged as ‘limited as to parcels’. If your property is affected it will be noted at the top of your title.
In short, a ‘limited as to parcels’ title means the precise boundary of your land is not guaranteed until surveyed and this notation removed.
Why does it matter?
While it is common for owners to own a limited as to parcels title with no issue, having an uncertain boundary can cause practical issues. If you plan to subdivide, build or renovate, council will require proof of exact boundaries. This can also affect sale processes.
Removing the limitation ensures your boundaries are guaranteed and that you actually own the area you think you own, your house or other structures sit within your land and vice versa in respect of your neighbours.
How can you fix it?
The good news is you can remove the limited as to parcels status by the following process:
1. Get a Survey Done: Hire a licensed surveyor to conduct a survey of your property’s boundaries. The surveyor will use fencing, buildings and other cues to determine official boundary positions to complete their plan. This plan when approved becomes the basis for a new title.
2. Notify Neighbours: Your surveyor will submit the plan to Land Information New Zealand (LINZ). Then, all adjoining landowners are notified of the intent to remove the limitation (unless they have already consented).
Neighbours generally have 40 working days to object by lodging a caveat.
In many cases, the neighbours may simply consent, especially if the boundaries aren’t changing in practice. If all affected neighbours sign written consents, the notice period is waived.
3. Title Updated: If no objections are raised within the notice period (or once any issues are resolved), the limited as to parcels notation from your title will be lifted. You’ll get a new title that has fully guaranteed boundaries.
This process can take a few months, mostly due to preparing the survey and the notification period. Once completed, your title will no longer be limited.
Conclusion
If you intend to build, subdivide, sell or otherwise require certainty of boundaries, it’s important to address a limitation as to parcels. The solution is straightforward: commission a proper survey and update the title through LINZ. By doing so, your land’s boundaries are guaranteed and you know exactly what you own. This removes potential headaches and adds value to your property in the long run. If you discover your title is limited as to parcels don’t be alarmed — it can be fixed. There are surveyors and property lawyers who handle this process regularly.
James Stewart, Commercial and Property Director
E: james.stewart@swlegal.co.nz
STEINDLE WILLIAMS LEGAL, Level 2, Suite 2.1, 18 Sale Street, T: 09 361 5563, www.swlegal.co.nz
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