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02
Step Two

Title and Compliance

Understanding what the title reveals and verifying building compliance.

5 min read

Title investigation

Commercial property titles can be complex. These need careful analysis to understand their impact on your intended use.

Key title matters:

  • Easements: Rights of way, services, party walls, and shared access
  • Covenants: Use restrictions, development controls, consent requirements
  • Encumbrances: Mortgages, caveats, and other registered interests
  • Unit title matters: Body corporate rules, long-term maintenance plans, levies

Building compliance

Compliance issues can be expensive to remedy. Key areas to investigate include:

Building consent history

Were consents obtained for all works? Are code compliance certificates in place?

Seismic rating

What percentage of New Building Standard (NBS)? Is it insurable?

Fire compliance

Current warrant of fitness, evacuation scheme approval, sprinkler certification

Resource consents

Land use consents, conditions compliance, permitted activities

Common issues we find

Our experience with Hawke's Bay commercial properties has revealed common problems:

Real examples from our practice

  • - A mezzanine floor added without consent - requiring engineering assessment and retrospective consent, or removal
  • - Change of use from warehouse to retail without resource consent - meaning the current use was technically unlawful
  • - Easement for neighbour's services running directly under proposed building footprint
  • - Encroachment by neighbouring building onto the property - requiring boundary adjustment or building removal

Why professional help matters

Council property files can contain countless pages. Knowing what to look for, what matters, and what's missing requires experience. We've reviewed thousands of LIM reports and property files. We know the questions to ask when documents are incomplete or concerning.

Finding issues during due diligence gives you options: renegotiate the price, require the vendor to fix problems, or walk away. Finding them after settlement leaves you with the problem and limited recourse.

Environmental considerations

Commercial sites may have contamination or hazardous materials that create ongoing liability:

  • Contaminated land: Check the HAIL register and council records
  • Asbestos: Asbestos management plan and register required for buildings with ACM
  • Underground storage tanks: Previous petroleum or chemical storage

What Carlile Dowling does

Our title and compliance investigation includes:

  • • Full title search and analysis of all registered interests
  • • Review of LIM report with detailed annotation of concerns
  • • Council property file review where warranted
  • • Identification of missing consents or compliance certificates
  • • Written summary of issues requiring attention or negotiation
Next Step

Lease Analysis

Evaluating existing tenancies

Considering a commercial property purchase?

We help investors and businesses navigate commercial property transactions.

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