A cross lease is a form of land ownership whereby multiple parties jointly own a parcel of land, and lease certain parts of the land back from one another (e.g. buildings and covenant areas).

A cross lease title may be defective when changes have been made to the flats and other buildings within the property that are not reflected on the Flats Plan(s). This can include the addition of new structures, changes to existing structures, and removal of existing structures.

A key concern with a defective title is that it needs to be disclosed by prospective purchasers to their bank (or other lender). This may then affect their ability to obtain lending, which can reduce the number of potential buyers and the amounts that they are able (or prepared) to pay.

Historically, the term "flat" generally referred to the dwellings that were leased back to the respective owners on the cross lease. Other buildings could also be included on the title, often with a numeric identifier (e.g. Flat 1 and Garage 1). The term "Area" is now used under the modern terminology.

Yes - converting or updating a Cross Lease in Auckland is typically a controlled activity, meaning Council must generally grant consent but may impose conditions in relation to certain matters (e.g. infrastructure). Certain key requirements must also be maintained (or met if not already provided), such as appropriate legal and physical access).