Property Law Act 2007

If you need more information about this Act, please contact the administering agency: Ministry of Justice
  • not the latest version

Reprint as at 1 October 2019

Coat of Arms of New Zealand

Property Law Act 2007

Public Act
2007 No 91
Date of assent
4 October 2007
see section 2

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Justice.


5Meaning of certain references
6Attorney or agent may act
6ATransitional, savings, and related provisions
7Act binds the Crown
8AAct subject to application of Cape Town Convention and Aircraft Protocol
9Deed must be in writing, executed, and delivered
10When deed comes into force
11Alterations after deed executed
12Attorney executing deed
13Contracts and other obligations entered into by bodies corporate
14Construction of supplementary or annexed deed
15Receipt for consideration in body of deed
16Powers of appointment
17Disclaimer of land
18Specific performance of voluntary promises made by deed
19Powers of attorney
20Power of attorney continues in force until notice of revocation received
21Irrevocable powers of attorney
22Person between 18 and 20 years may do certain things
23Construction of instruments
24Contracts for disposition of land not enforceable unless in writing
25Writing required for certain dispositions of interests in land
26Doctrine of part performance not affected
27Contracts of guarantee must be in writing
27AWriting required for discharge of debt by acceptance of part in satisfaction
28Restriction on vendor’s right to cancel agreement, etc, if purchaser in possession
29Requirements for vendor’s notice to purchaser
30Defects that do not invalidate vendor’s notice or prevent purchaser offering reasonable compensation
31Section 28 does not prevent or limit claims for damages
32Instruments have no effect so far as they conflict with section 28, 29, 30, or 31
33Relief against cancellation of agreement for sale of land
34Section 33 replaces all other jurisdiction to grant relief
35Application for relief not to constitute admission
36Instruments have no effect so far as they conflict with section 33 or 34
37Purchaser may apply for order requiring refund of deposit, etc, in respect of certain agreements
38Court awarding damages against purchaser must take into account relief granted under section 37
39Agreements have no effect so far as they conflict with section 37 or 38
40Purchaser of lease must treat lease conditions as having been observed if vendor produces copy of rent receipt
41Vendor must ensure record of title not limited or qualified as to title (whether or not also limited or qualified as to parcels)
42Auction sales of property other than goods [Repealed]
43Later title not invalid because of defect in court order
44Certain instruments authorise payment to practitioner instead of party for whom practitioner acts
45Apportionments in respect of time
46Payment and recovery of apportioned part of periodical payment
47Apportionment of rent from property
49Application of subpart
50How thing in action assigned
51Further consequences of assignment of thing in action
52Further provisions about assignments
53Assignment of amounts payable in future
53BSurety who pays debt entitled to assignment of all securities held by creditor
53CRights of surety
53DRights of co-sureties, etc, as between themselves
54Effect of no registration clause
55Tenants in common may declare that they are joint tenants
56Person may dispose of property to himself, herself, or itself
57Feudal incidents of estate in fee simple abolished
58Abolition of obsolete estates and rules
59Future estates and interests
60Doctrine of interesse termini abolished
61Life estate in leasehold estate
62Creation and disposition of estates and interests in property
63Contingent remainders and interests
64When gifts over cease to be capable of taking effect
65Meaning of heirs and similar words
66Future interests to carry accumulated income
67Vendor has no lien
68Voluntary waste or equitable waste by life tenant or lessee
69Voluntary or equitable waste by co-owner
70Permissive waste abolished
71Release of part of land from rentcharge
72Body corporate may hold property as joint tenant
73Release and disclaimer of powers
74Power to appoint among different objects
74ARecovery of payments made under mistake of law
74BPayments made under mistake of law or fact not always recoverable
75Application of Part
76Application of sections 79, 92, 94, 95, and 96
77Non-application of Part to security interests in consumer goods
78Provisions of Part are supplementary, but subject, to Personal Property Securities Act 1999 in relation to mortgages over personal property
79Mortgage over land to take effect as charge
80No mortgage over land by deposit of instruments of title
81Right of mortgagor to bring proceeding against mortgagee
82Effect of advance on joint account
83Discharge of mortgage
84Assignment of mortgage
85Variation of mortgage
86Effect of mortgage variation instrument
87Mortgage secures advances for protection and realisation of security
88Priority extends to advances for protection and realisation of security
89Priority of security for advances after subsequent mortgage comes into operation
90Advance of specified principal amount after subsequent mortgage
91Priority extends to further advances if mortgagee does not have actual notice of subsequent mortgage or is obliged to make further advances
92Priority extends to further advances up to stated priority limit
93Interpretation for purposes of sections 91 and 92
94Transitional provisions for further advances
95Covenants implied in mortgages over land
96Covenants implied in mortgages over goods (except inventory)
97Equity of redemption
98Amounts secured include interest for unexpired portion of term
99Mortgagor or other person seeking to redeem must give notice or pay interest in certain circumstances
100Requirement to pay interest subject to credit contract legislation
101Terms in instrument of no effect if less favourable
102Request to mortgagee to transfer mortgage
103Mortgagee must transfer mortgage after receiving request
104Right to inspect instruments of title
105Restriction on consolidation
106Instruments have no effect so far as they conflict with section 102, 103, 104, or 105
107Application for order of court directing sale of mortgaged property
108Court may make order directing sale of mortgaged property
109Redemption when mortgagee cannot be found, etc
110Redemption by order of court
111Certificates and orders operate as discharge of mortgage
112Redemption by payment to Public Trust
113Instruments of title must be delivered on production of Public Trust’s receipt or certificate
114Public Trust not liable if acts reasonably and in good faith
115Court may order discharge of mortgage if periodical payments secured are otherwise provided for
116Certificate operates as discharge of mortgage
117Foreclosure abolished
118Mortgagee accepting interest after expiry of term not to call up without notice
119Notice must be given to current mortgagor of mortgaged land of exercise of powers, etc
120Form of notice under section 119
121Copy of notice under section 119 must be served on former mortgagor, covenantor, subsequent mortgagee, and caveator
122Notice of intention to recover deficiency in relation to mortgages over land
123Instruments have no effect so far as they conflict with section 119, 120, 121, or 122
124Conditional sale of land permitted before expiry of notice
125Notice not required before exercising certain powers under mortgage debenture
126Court may grant leave to enter into possession of land, etc
127Transitional provisions for notices given or served before commencement of Act
128Notice must be given to current mortgagor of mortgaged goods of exercise of powers
129Form of notice under section 128(1)
130Copy of notice under section 128 must be served on former mortgagor, covenantor, and subsequent mortgagee
131Instruments have no effect so far as they conflict with section 128, 129, or 130
132Notice of intention to recover deficiency in relation to mortgages over goods
133Instruments have no effect so far as they conflict with section 132
134Conditional sale of goods permitted before expiry of notice
135Notice concerning goods not required in certain cases
136Court may grant leave to exercise power of sale of goods or to claim deficiency
137Exercise of power to enter into possession
138Mortgagee may not enter into or take physical possession if mortgagee has consented to lease
139When mortgagee becomes mortgagee in possession
140Mortgagees in possession of accounts receivable
141Mortgagee in possession of leasehold estate or interest in land or of leased goods
142Mortgagee in possession of land may enter into lease
143Terms and conditions of lease entered into by mortgagee in possession
144Extent to which lease of land entered into by mortgagee in possession is binding on certain persons
145Mortgagee in possession may enter into lease of mortgaged land together with other land
146Registrar-General or other person need not inquire whether occasion has arisen authorising mortgagee to enter into lease
147Mortgagee in possession of land may exercise powers under lease
148Mortgagee in possession may manage land, goods, or accounts receivable
149Mortgagee in possession of land may harvest crops and timber
150Mortgagee in possession may protect or repair mortgaged land or goods
151Mortgagee in possession of land liable for waste
152Application of income received by mortgagee in possession
153Preferential claims
154Transitional provisions relating to preferential claims
155Mortgagee in possession to account to current mortgagor
156Notice of entry into possession of mortgaged land or goods
157Address to which notice to current mortgagor must be sent
158Public notice
159Current mortgagor to make information available and give reasonable assistance to mortgagee in possession
160Accounting records
161Mortgagee in possession must keep money relating to land, goods, or accounts receivable separate from other money
162First report by mortgagee in possession
163Further reports by mortgagee in possession
164Extension of time for preparing reports
165Persons entitled to receive reports
166Persons entitled to inspect reports
167Duty to notify breaches of other Acts
168Withdrawal of mortgagee from possession
169Mortgagee who has withdrawn from possession not entitled to receive income after withdrawal
170Withdrawal with consent of court
171Withdrawal by direction of court
172Restriction on re-entry into possession after withdrawal
173Notice that mortgagee has withdrawn from possession
174Defences available to directors in proceedings for offences under this subpart
175Application of various provisions to mortgagees who entered into possession before commencement of Act
176Duty of mortgagee exercising power of sale
177No defence or indemnity
178Powers incidental to power of sale
179Mortgagee may adopt agreement for sale and purchase
180Court may authorise land and minerals to be dealt with separately
181Powers incidental to power to sell land, mines, or minerals
182Sale together with other property at single price
183Mortgagee may transfer or assign mortgaged property to purchaser
184Protection of purchaser at sale by mortgagee
185Application of proceeds of sale of mortgaged property
186Payment of surplus to the Crown if current mortgagor cannot be found
187Sale by mortgagee through Registrar
188Application for sale under section 187
189Vendor mortgagee must nominate discharge sum
190Registrar to arrange sale
191Advertising of sale
192Registrar may consent to correction of defect or error
193Withdrawal of land from sale
194Registrar’s fees, expenses, and commission
195Current mortgagor or other person may redeem on payment of nominated discharge sum
196Mortgagee may purchase at sale through Registrar
197Effect of transfer executed or registered under section 196
198Registration of transfer instrument
199Applications for sale of mortgaged land by Registrar made before commencement of Act
200Sale by mortgagee through court
201Application for assistance must be served on certain persons
202Miscellaneous matters concerning orders under section 200
203Person who accepts transfer, assignment, or transmission of land personally liable to mortgagee
204Liability of former mortgagor not extinguished
205Administrator or trustee liable only to extent of assets of estate or trust
206Application of Part
208Short-term lease: form
209Short-term lease: effect
210Implied term of lease if no other term agreed
211Obligations of lessee to remain in force if lessee remains in possession of land with lessor’s consent after term of lease has expired
212Lease terminating on occurrence of future event
213Lessee remaining in possession without consent of lessor, or lessor accepting rent, after termination of lease
214Notice by joint tenants
215Sublease for same or longer term as term of superior lease
216Surrender of lease to enable new superior lease to be entered into not to affect sublease
217Application of sections 218 to 220
218Covenants, conditions, and powers implied in all leases
219Covenant implied in leases (except unregistered short-term leases)
220Covenant implied in unregistered short-term leases
221Reference to usual covenants
222Time for payment of rent
223Effect of covenant to keep premises in good condition
224Consent not to be unreasonably withheld or delayed
225Application of sections 226 to 228
226Consent to assignment, etc, or change of use
227When consent is unreasonably withheld
228Damages may be recovered from lessor if consent is unreasonably withheld
229Instruments have no effect so far as they conflict with section 225, 226, 227, or 228
230Merger of reversion not to affect remedies
231Burden of lessor’s covenants to run with reversion
232Rights under lease to which section 233 applies
233Benefit of lessee’s covenants to run with reversion
234When rights arising from covenants may be exercised
235Rights and obligations under lease after severance
236Notice of termination of lease after severance
237Effect of payment by lessee to assignor of reversion
238Effect of acknowledgement by lessee of another person as lessor
239Application of subpart
240Transferee or assignee becomes lessee
241Transferor or assignor remains liable
242Covenant implied in transfer or assignment of lease
243Sections 244 to 264 to be code
244Cancellation of lease for breach of covenant or condition: general
245Cancellation of lease for breach of covenant to pay rent
246Cancellation of lease for breach of other covenants
247Defects that do not invalidate notice of intention to cancel lease
248Application to court for possession of land made before expiry of period of notice of intention to cancel lease
249Consequences of serving on lessee notice of intention to cancel lease under section 245 or 246
250Acceptance of rent by lessor after notice of intention to cancel lease given not to operate as waiver of lessor’s rights
251Powers of court in making order for possession
252Effect of sections 244 to 251
253Relief against cancellation of lease for breach of covenant or condition
254Mortgagee or receiver may apply for extension of time for bringing proceedings
255Application for relief not to constitute admission
256Powers of court on application for relief
257Effect of order granting relief against cancellation of lease
258Protection of sublessee on cancellation of superior lease
259Interested person may apply for extension of time for bringing proceedings
260Powers of court on application for relief by sublessee
261Relief against lessor’s refusal to enter into renewal or sell reversion to lessee
262How application under section 261 for relief under section 264 to be made
263Matters lessee must be informed of by notice
264Relief court may grant on application
265Right to distrain abolished
266Removal of fixtures by lessee
267Effect of unlawful eviction on lessee’s obligations
268Application of sections 269 and 270
269Exoneration of lessee if lessor is insured
270Rights of lessor if insurance for leased premises or land is affected by negligence of lessee or lessee’s agent
271Lessee may acknowledge lessor has not insured, or fully insured, premises
272Instruments have no effect so far as they conflict with section 269, 270, or 271
273Effect of waiver
274Administrator not personally liable
275Sections 276 to 278 apply to covenants express or implied
276Effect of covenants made by 2 or more covenantors
277Effect of covenants for benefit of 2 or more covenantees
277ACertain covenants void
278Covenants persons made with themselves
279Construction and variation, etc, of implied covenants
280Covenants implied by this Act are generally cumulative
281Only by enactments can covenants be implied as matter of law in certain instruments relating to property, etc
282Application of subpart
283Covenants implied unless contrary intention expressed
284Covenants implied in instruments creating, transferring, or assigning estates or interests in land
285Covenant implied in instruments transferring or assigning lease of land
286Covenants implied in instruments by fiduciary or mortgagee
287When person executes instruments in fiduciary capacity for purposes of section 286
288Covenants implied in encumbrances of property
289Covenant implied in transfers or assignments of land subject to encumbrance
290Restriction on liability of certain administrators or trustees on covenant under section 289
291Easements in gross permitted
292Easement includes profit, etc, in sections 293 to 296
293Easements, etc, granted for fixed term: benefits
294Easements, etc, granted for fixed term: burden
295Easements, etc, granted for fixed term: apportionment after severance of reversion as regards land or estate
296Easements, etc, can no longer be acquired by prescription
297Covenants implied in grant of vehicular right of way
298Rights of proprietors of access lot that is or includes driveway or proposed driveway
299Grant of easement of light or air
300Effect of easement of light or air
301Construction of covenants relating to land: benefits
302Construction of covenants relating to land: burdens
303Legal effect of covenants running with land
304Whether, and to what extent, administrator bound by covenant to which section 303 applies
305How rights under covenant to which section 303 applies rank in relation to other unregistered interests
306Certain duties under, and law on, restrictive covenants not limited or affected by section 303
307Notation of covenants
307ACovenants in gross
307BConstruction of covenant in gross
307CLegal effect of covenant in gross
307DWhether, and to what extent, administrator bound by covenant in gross
307EHow rights under covenant in gross rank in relation to other unregistered interests
307FNotation of covenants in gross
308Person entitled may give notice of work required
309Requirements for notice served under section 308
310Person bound who does not agree may serve cross-notice
311Circumstances in which person bound is not liable
312Person entitled or person bound ceasing to be owner or occupier
313Court may enforce easements and positive or restrictive covenants
314Duties of court making order under section 313(1)(e) on sharing of cost of work under vehicular right of way
315Application of sections 313 and 317, etc, to access lots
316Application for order under section 317
317Court may modify or extinguish easement or covenant
318Registration and recording of orders under section 317
318AApplication of sections 308 to 312 to positive covenants in gross
318BApplication of section 313 to covenants in gross
318CApplication for order under section 318D
318DCourt may modify or extinguish covenant in gross
318ERegistration and recording of orders under section 318D
319Owner or occupier of land may apply to court for order authorising entry onto or over neighbouring land
320Powers of court making order authorising entry onto or over neighbouring land
322Certain persons may apply for relief for wrongly placed structure
323Court may grant relief for wrongly placed structure
324Matters court may consider in determining application for relief
325Orders court may make
327Owner or occupier of landlocked land may apply to court
328Court may grant reasonable access to landlocked land
329Matters court must consider in determining application for order for reasonable access
330Court may impose conditions in making order for reasonable access
331Costs of work giving effect to order
332Application of this subpart
333Court may order removal or trimming of trees or removal or alteration of structures
334Owner or occupier of land may apply for order under section 333
335Matters court may consider in determining application for order under section 333
336Further considerations relating to trees
337Court may impose conditions in making order under section 333
338Completion of work required by order under section 333
339Court may order division of property
340Order under section 339(1)(b) subject to restrictions on subdivision of land
341Application for order under section 339(1)
342Relevant considerations
343Further powers of court
344Purpose of this subpart
346Dispositions to which this subpart applies
347Application for order under section 348
348Court may set aside certain dispositions of property
349Protection of persons receiving property under disposition
350Person in or to whom order under section 348 vests property or makes compensation for it payable
351Application of Schedule 6
352Documents to which section 353 applies
353How documents in section 352 to be given or served
354How other documents to be given or served
355Person to or on whom document to be given or served in special cases
356Sections 353 to 355 and service in legal proceedings
357Orders dispensing with, or directing manner of, service
358Agent defined for purposes of sections 353 and 355
359Manner of giving or serving notices
360Receipt for purposes of section 359
361Time of service if more than 1 person to be served
362Jurisdiction of District Court
364Consequential amendments
365Imperial enactments relating to property no longer part of law of New Zealand
366Property Law Act 1952 and 2 related Acts repealed
367Existing matters, proceedings, and instruments
368Distraint may be completed
369Transitional provisions relating to Insolvency Act 2006
370Transitional provisions relating to Companies Amendment Act 2006
371Transitional provision relating to Insolvency (Cross-border) Act 2006
Reprint notes