Written by Kevin Lampen-Smith, Aug 23 2019 for Stuff.

There are four main types of property ownership in New Zealand – freehold, leasehold, unit title and cross lease. In a cross lease, you own a share of the freehold title with the other cross leaseholders and a leasehold interest in the particular area and building that you occupy.

Cross leases are a complicated form of property ownership in New Zealand and lots of people find them hard to understand. In fact, they can be so troublesome that the Law Commission has recommended they are abolished.

Many people don’t do their due diligence on cross lease properties and find themselves in a bit of a mess as a result.

I can’t tell you whether a cross lease property is right for you or not, but I strongly recommend engaging a lawyer before you make any decisions, especially to review the terms of the cross lease. Their first step should be to check that the property you are interested in matches the one marked on the flats plan.

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