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Cross leases – what do I need to know?

Cross leases are different to freehold titles.

You and your neighbour(s) each own an equal share in the land (fee simple) and you each lease your house (called “the Flat”) from the other.

Each flat owner has a lease for their flat and their section which is registered on the title.

The leases define each flat owner’s exclusive use areas (ie the surrounding land, garages, carparks etc) and common areas (ie driveways, paths etc).

You need to be vigilant when looking to buy a crosslease as crosslease titles can be defective!

The flats plan needs to match the house exactly! Any extensions need a new plan

Alterations need the written consent of the other flat owner.

How to know if a cross lease is defective and what to do if it is defective?

We search the title documents and flats plan for you.

We will highlight :

  • The flat plan for the property you are purchasing
  • Your exclusive use areas
  • The common areas

If the flats plan and/or lease document is not correct:

  • We will explain to you simply what this means and what you need to know
  • Let you know how a defective flats plan will affect your ownership of the property moving forward
  • Let you know how this can be fixed

If you are looking at buying a cross lease property that has a title defect, we will explain what your options are under the contract and what you can ask the vendor to do.

Our role is to ensure you make an informed decision and understand the implications of a cross lease title

If you are looking at renovating your property, we can let you know what is involved in updating your flats plan

What should you do to ensure you don’t purchase a defective title or end up with a defective title?

Contact us to search the title before submitting your offer. Making sure you are fully informed at the outset will help you make the right decisions from the start