Updating a Flats Plan
Ownership of a cross lease title can require occasional updates to ensure compliance and avoid a defective title. This occurs when certain building additions, alterations, removals, or other changes to the use of the land are made. Whether you're new to the process or looking to refresh your understanding, this guide will walk you through the essential steps and considerations for updating a cross lease (commonly referred to as a flats plan update).
Understanding Cross Lease (Flats Plan): A cross lease is a unique form of property ownership where multiple parties each own a share in the land collectively and have a leasehold interest in their individual unit or flat, along with common use and/or exclusive use over other parts of the land. This arrangement typically involves shared responsibilities and restrictions, making updates crucial to maintain harmony and legal compliance.
Why Update Your Cross Lease (Flats Plan)? Updating your cross lease is essential for several reasons:
Legal Compliance: Ensure your property conforms to current legal requirements and regulations.
Property Value: Updates can enhance the marketability and value of your property.
Clarity and Ownership Rights: Clarify ownership boundaries, responsibilities, and rights among co-owners.
Steps to Update Your Cross Lease:
1. Assessment and Documentation:
Title Search: Obtain a current title search to review existing rights and restrictions.
Flats Plan Review: Assess the existing flats plan to identify any discrepancies or outdated information.
Co-owners: Obtain consent from all co-owners involved in the cross lease.
2. Engage with Professionals:
Surveyor’s Input: Engage a licensed surveyor to survey the changes, update the flats plan and ensure accuracy in property boundaries.
3. Drafting Updates:
Collaborate with your lawyer and surveyor to draft updated documentation, including amendments to the flats plan and any necessary consents or agreements from co-owners.
4. Council Consents:
Obtain Resource Consent to update the cross lease.
Depending on changes, you may also need Building Consent or other certifications for updates to the flats plan.
5. Lodging Updated Documents:
Lodge the updated flats plan and related documentation with Land Information New Zealand (LINZ) for registration.
Updating a cross lease (flats plan) in New Zealand ultimately requires careful consideration of legal, procedural, and collaborative aspects. By following the steps outlined in this guide and seeking professional guidance where necessary, you can ensure your property remains compliant, valuable, and well-managed under the cross lease agreement. Stay proactive in managing your property’s legal obligations to maintain peace of mind and safeguard your investment.
Ready to update your flats plan? Contact us today for expert guidance and support through every step of the process, and ensure your property remains compliant and valuable with our specialized services.