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Understanding Your Trust
04
Step Four

Easements, Caveats & Covenants

Understanding restrictions on your property and what they mean for you.

5 min read

Easements explained

An easement gives some other land or person use of part of your land for a specific purpose. They're extremely common and often unproblematic, but you need to understand what they mean.

Common types of easements:

  • Right of way: A neighbour has the right to cross your property
  • Drainage: Pipes or stormwater channels run under your land
  • Power or telecommunications: Lines or cables cross your property
  • Party wall: A shared wall between two properties

Key question: Where exactly is the easement, and does it affect where you can build or what you can do with that part of the property?

What is a covenant?

Covenants are rules that restrict what you can do with your property. They can be positive (requiring you to do something) or negative (prohibiting you from doing something).

Examples of common covenants:

Building materials

Restrictions on cladding or roofing types

Height restrictions

Limits on building height or storeys

No subdividing

Can't divide the property into smaller lots

Fencing requirements

Specific fence styles or materials required

Important: Some old covenants are no longer enforceable, while others are strictly policed by neighbours' societies. We'll help you understand which apply to your property.

Caveats: a warning sign

A caveat is a warning registered against the title. It prevents dealings with the property until the caveator's interest is resolved or removed.

Common causes:

  1. A purchaser protecting their agreement
  2. A party claiming a share of the property (e.g. a relationship property claim)
  3. A creditor protecting their interest

Caveats usually need to be dealt with before settlement. We check whether any exist and what needs to happen.

We'll obtain copies of any registered instruments and explain what they mean for you. Contact us on 06 835 7394.

How we help

We explain any easements, covenants, or caveats in plain English and advise whether they should concern you.

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Finance and Affordability

What the bank expects and what to budget for

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