How buying land in NZ works

01Check your eligibility

New Zealand's Overseas Investment Act 2005 controls who can buy land. Your eligibility depends on your residency status.

Who can buy without consent

• NZ citizens: no restrictions, buy anything
• Permanent residents who have been ordinarily resident in NZ for at least 12 months, same as citizens
• Australian and Singaporean citizens: can buy existing homes and residential land without OIO consent, thanks to free trade agreements (see below)

The free trade agreement exemption (Australia and Singapore)

When NZ banned most overseas buyers from purchasing residential property in 2018, it carved out exemptions for Australian and Singaporean citizens because of existing trade commitments:

• Australian citizens are exempt under the Closer Economic Relations (CER) agreement between NZ and Australia. They can buy residential property, including vacant land, without OIO consent.
• Singaporean citizens are exempt under the NZ-Singapore Closer Economic Partnership (ANZSCEP). The same applies: residential property and vacant land can be purchased without OIO consent.

In both cases, the exemption covers residential land (including sections you plan to build a home on). However, it does not automatically cover sensitive land, rural land over 5 hectares, or commercial property. Your lawyer can confirm whether your specific purchase falls within the exemption.

Who needs OIO consent

If you're a non-resident, or a resident who hasn't been in NZ for 12 months, you are an "overseas person" and generally need consent from the Overseas Investment Office (OIO) to buy residential land. This can be expensive and slow. It can cost you serious money in application fees and legal costs, and take months.

Sensitive land

Even if you can buy residential land, some land is classified as "sensitive" under the Act: land adjoining the coast, lakes, rivers, conservation areas, historic reserves, or land over 5 hectares. Buying sensitive land requires OIO consent regardless of your residency status. Your lawyer will check this for you, but it's good to know upfront that a rural lifestyle block near a river might trigger extra steps.

02Get your finances sorted

Before you start looking seriously, work out how you'll pay for it. Land purchases in NZ are typically not as simple as transferring money from overseas.

Pre-approval

If you need a mortgage, talk to a NZ bank or mortgage broker early. Getting pre-approved gives you a ceiling to work with and shows agents you're a serious buyer. Some banks will assess overseas income (for example, Singapore-based income), but their criteria vary and the process can take longer than for a local applicant.

Currency and transfers

If your funds are in SGD or another currency, you'll need to convert to NZD. The exchange rate on the day you transfer can shift the effective price of your land by thousands of dollars. Options include:

• Your bank's international transfer: convenient but often poor exchange rates and high fees
• Currency transfer specialists (Wise, OFX, XE): generally better rates, and some offer forward contracts to lock in a rate
• Your NZ lawyer's trust account: your lawyer will tell you where to send funds before settlement

Proof of funds

Even if you're paying cash (no mortgage), agents and vendors may ask for proof that you can actually settle. A letter from your bank or a recent statement showing available funds helps. Your lawyer can advise on what's typically expected in your region.

Get an IRD number

You'll need an IRD number (Inland Revenue Department tax number) before you can settle on a property. Both buyer and seller are required to provide their IRD number as part of the land transfer tax statement that gets filed with LINZ at settlement. If you're applying from overseas, do this early. It can take a few weeks, and you don't want it holding up your settlement date.

03Plan your build

Most guides put this after settlement, as if you buy the land first and work out the house later. That order is backwards. You do not need finished plans before you start looking, but you do need a rough brief, because the house and the section decide each other.

The build and the land decide each other

It runs in both directions, and you have to keep checking both.

The build you want narrows the land. A single-storey four-bedroom home with a double garage needs a bigger footprint than a two-storey home with the same floor area, so it rules out narrow sections. Wanting north-facing living areas rules out sections where the only place the house fits faces south. A garage plus off-street parking needs a workable driveway, which rules out sections with an awkward frontage or a shared access easement in the wrong place. Every one of those is a filter you can apply while you are still browsing listings.

The land you find limits the build. Slope decides your foundation type and whether you need retaining walls. Ground conditions decide whether a standard slab works at all. Zoning caps your height, site coverage and how close to the boundary you can go. Covenants can set a minimum floor area, ban certain cladding, or dictate roof colour. Easements carve out strips you cannot build over. A section can be perfect on price and location and still be unable to hold the house you had in mind.

Section 6 covers the searches that answer these questions: title, LIM, geotech, district plan, covenants and easements. Do them with a specific house in mind, not in the abstract. "Can I build here" is a much weaker question than "can I build this here."

Resource consent vs building consent

These are two different approvals from two different laws, and people mix them up constantly.

The 20 working days on a building consent is a statutory limit, not a prediction. If the council asks for further information, your application is suspended and the suspension does not count toward the 20 days. This is known as stopping the clock, and it is the single biggest reason consents take longer than people expect. A well-prepared application from a designer who knows your council is worth real money here.

Two deadlines run from the day consent is granted:

• 12 months to start. Your building consent lapses if work has not begun within 12 months. You can ask the council for an extension, but you have to ask before the 12 months is up.
• 2 years to finish. Your council has to decide whether to issue a code compliance certificate (CCC) two years after the consent was granted, unless you agree a different period with them. The CCC is what confirms the completed work meets the consent, and you will need it for insurance, resale and often your lender.

What the Building Code will dictate

Some of your design decisions get made for you by the site. These are the ones that most often force a redesign or a bigger budget.

• Ground conditions. NZS 3604, the timber framing standard most NZ houses are built to, only applies on "good ground": soil with an ultimate bearing capacity of 300 kilopascals. Sand, peat, expansive clay and land subject to subsidence or liquefaction are not good ground. If your site is not good ground, you need specific engineering design, which means an engineer and a more expensive foundation. This is why the geotech report in section 6 matters so much.
• Wind zone. NZS 3604 sets zones from Low through Medium, High, Very High and Extra High, based on wind region, ground roughness, topography and how exposed the site is. Anything above Extra High falls outside the standard and needs specific engineering design. An exposed rural or hillside section can sit several zones above a sheltered suburban one a few kilometres away, and it shows up in bracing, fixings and glazing costs.
• Insulation and glazing. Clause H1 of the Building Code sets thermal performance minimums for roofs, walls, floors, windows and doors. The current requirements came fully into effect on 2 November 2023 and vary by climate zone: windows and doors must reach R0.46 in zones 1 to 4 and R0.50 in zones 5 and 6. In practice this means thermally broken joinery and double glazing as a baseline in the colder zones, which is a meaningful line item if you budgeted off an older quote.
• Restricted building work. Design and construction work that is critical to a home's structure or weathertightness must be done or supervised by a Licensed Building Practitioner. That covers foundations, framing, bracing, load-bearing walls, cladding, flashings and window installation. Each LBP has to give you a Certificate of Design Work or a Record of Building Work. Keep every one of them, because the council will want them at CCC time.

A realistic timeline

Only two numbers here are legally fixed: the 20 working days for consent processing and the 12 month and 2 year clocks above. Everything else is what people in the industry commonly report, and it varies with your builder's workload, the weather and how complex your design is.

Planning checklist

• Before you shortlist land
• Write a one-page brief: floor area, storeys, bedrooms, garage, living-room orientation, build budget
• Decide roughly which route you are taking: group builder standard plan, design and build, or architect plus separate builder. It changes both cost and timeline.
• Get a build budget you actually believe, separate from your land budget, and include a contingency
• Talk to a lender about construction finance if you are not paying cash. It draws down in stages and works differently from a normal mortgage.
• On every section you are serious about
• Check the district plan rules for that zone: height, site coverage, setbacks, minor dwellings
• Read the covenants for minimum floor area, cladding, colour and build timeframe
• Find the easements on the title and mark where you cannot build
• Check contour and whether retaining walls are likely
• Ask whether a geotech report exists, and whether the site is good ground or needs specific engineering design
• Check the wind zone, especially on exposed rural, coastal or hillside sites
• Confirm what services reach the boundary and what connection will cost
• Sketch or ask your designer to test-fit your brief on the actual section dimensions
• Before you go unconditional
• Confirm your design can be built here without a resource consent, or budget the time and cost if one is needed
• Put the covenant build-start deadline and your realistic design plus consent timeline on the same calendar
• Get an indicative build quote for your brief on this specific site, not a generic per-square-metre rate
• Confirm whether the price includes GST and what development contributions or connection fees are outstanding
• After settlement, before you build
• Engage your designer and confirm who holds the LBP design licence for the restricted building work
• Lodge for resource consent first if you need one, then building consent
• Get the building contract reviewed before you sign it
• Diarise the 12-month start deadline and the 2-year CCC deadline from the date consent is granted
• Collect every Certificate of Design Work and Record of Building Work as the job goes, not at the end

04Find land

In NZ, a plot of land is called a "section" or a "lot." Vacant land listings are found on the same property sites as houses.

Where to search

Filtering tips

• Use the map view: it's much more useful than list view for land. You can see exactly where sections are relative to roads, schools, and amenities.
• Filter by "sections" or "vacant land": don't just search "residential" or you'll wade through houses.
• Check the listing type: "Deadline Sale," "Tender," "Auction," "Negotiation," or "Price by Negotiation" each work differently (more on this in section 7).
• Set up alerts: good sections in popular areas sell fast. Email alerts mean you see them the day they list.

What to look for in a section

• Title type: freehold (fee simple) is straightforward. Cross-lease and unit title have shared obligations. Leasehold means you don't own the land itself.
• Orientation: in the Southern Hemisphere, a north-facing living area gets the most sun. Check which direction the section faces.
• Contour: flat is easiest and cheapest to build on. Sloped sections need retaining walls, which add cost.
• Services: is it connected to water, sewer, power, and fibre? Or do you need a septic tank, bore, and solar?
• Covenants: many new subdivisions have building covenants that restrict what you can build (minimum floor area, cladding type, fencing, timeframes). Read them carefully.
• Natural hazards: flood zones, liquefaction risk, coastal erosion. Your council's planning maps show these.

05Hire a lawyer or conveyancer

In NZ, you need a property lawyer or licensed conveyancer to handle the legal side of buying land. Engage one before you make an offer, not after. They'll review the Sale and Purchase agreement, run title searches, check for issues, and handle the money on settlement day.

Lawyer vs conveyancer

• Property lawyer: a fully qualified lawyer who specialises in property. Can handle complex situations (trusts, overseas buyers, OIO consent). Generally more expensive.
• Licensed conveyancer: specialises in property transactions. Can handle straightforward purchases. Often cheaper.

If you're buying from overseas and your situation has any complexity (visa status, overseas funds, building plans, covenants), a property lawyer is usually worth the extra cost.

What to ask before you engage one

• What's your fixed fee for a vacant land purchase? (Most quote a fixed fee, typically $1,500-$3,000 + GST + disbursements)
• Have you acted for overseas buyers before?
• Can you handle everything remotely (email, video calls, electronic signatures)?
• What disbursements should I expect? (title search, LIM, registration fees, AML checks)

Identity verification (AML)

Your lawyer is legally required to verify your identity under NZ's Anti-Money Laundering and Countering Financing of Terrorism Act. If you're overseas, this usually means providing:

• Notarised copy of your passport for proof of identity (certified by a notary public, Justice of the Peace, or lawyer in your country)
• Proof of address: a recent bank statement, utility bill, or government letter showing your current residential address
• Source of funds documentation: bank statements, payslips, or sale proceeds showing where the purchase money is coming from

Get these sorted before you need them. Notarising documents in Singapore is straightforward (any notary public can do it), but it still takes a trip and a fee. Your lawyer will tell you exactly what format they need.

When do you pay your lawyer

Most property lawyers charge a fixed fee for a standard land purchase. When you pay depends on the firm, but the typical arrangement is:

• Some lawyers ask for a small retainer upfront when you engage them (a few hundred dollars)
• The main fee and disbursements are usually invoiced at or shortly after settlement
• Disbursements (title search, LIM, registration fees) are sometimes billed as they're incurred

Ask your lawyer about their billing timeline upfront so there are no surprises.

06Do your due diligence

Due diligence is your chance to find out everything about the land before you commit. In NZ, once you go unconditional, you're locked in, so this is where you protect yourself.

Title search

Your lawyer will pull the title from LINZ (Land Information New Zealand). This confirms who owns the land, its legal boundaries, any registered interests (easements, covenants, caveats, mortgages), and the title type. Cost: about $25.

LIM report

A Land Information Memorandum (LIM) is issued by the local council. It tells you everything the council knows about the property: zoning, building consents issued, resource consents, rates, flooding or hazard overlays, contamination, and any notices. Cost: $200-$400 depending on the council. Turnaround: 5-10 working days (plan ahead).

Geotechnical report

A geotech report tells you what the ground is made of and whether it can support a building. This matters a lot in Canterbury (liquefaction), coastal areas (sand), and hillside sections (stability). Some subdivisions include a geotech report in the sale pack. If not, you may want to commission one, especially if the section is sloped or in a known hazard zone. Cost: $1,500-$5,000+.

Council district plan and zoning

Check the council's district plan to understand what you can and can't build. Zoning determines things like maximum height, site coverage, setbacks from boundaries, and whether you can have a minor dwelling (granny flat). Your council's planning maps are free online.

Covenants and encumbrances

New subdivisions almost always have covenants: rules set by the developer about what you can build. Common ones include:

• Minimum floor area (e.g., 150 sqm)
• Cladding restrictions (e.g., no full corrugated iron facades)
• Fencing type and height restrictions (e.g., max 1.2m in front, specific materials only)
• No keeping of livestock, poultry, or other animals beyond domestic pets
• Landscaping requirements (e.g., must plant and maintain front yard within 12 months)
• Build timeframe (e.g., must start building within 2 years of settlement)
• No temporary structures, caravans, or shipping containers
• Colour palette restrictions for exterior paint and roofing

Your lawyer will explain these. Read them yourself too. They're attached to the title and run with the land.

Easements

An easement gives someone else the right to use part of your land for a specific purpose: a shared driveway, stormwater pipes, power lines, or access to a neighbouring property. They're registered on the title. Not all easements are a problem, but some can restrict where you build or how you landscape. Your lawyer will flag anything significant.

GST

Vacant land can attract 15% GST if the vendor is GST-registered and selling as part of a taxable activity, most commonly when you're buying from a developer. The listed price might say "+GST" in the fine print, which can add tens of thousands to what you actually pay. Your lawyer will check the GST status of the sale, but ask the question early so it doesn't surprise you at settlement.

Development contributions and connection fees

New subdivisions may have outstanding development contributions, charges the council levies to fund infrastructure like roads, water, and wastewater. Sometimes the developer has already paid these; sometimes they're passed on to the buyer. Check the Sale and Purchase agreement and the LIM.

You may also need to pay to connect services to your section: water, sewer, power, and internet. On a new subdivision with services brought to the boundary, connection might be straightforward. On a rural or semi-rural section, it can cost significantly more. Ask the developer or council what's included and what's not before you commit.

07Make an offer

In NZ, the standard document for buying property is the Agreement for Sale and Purchase of Real Estate, published by the Auckland District Law Society (ADLS) and the Real Estate Institute of New Zealand (REINZ). Your lawyer or the agent will prepare this.

Conditions

Unless you're buying at auction, your offer should include conditions that protect you. Common ones:

• Finance condition: gives you time (usually 10-15 working days) to get formal mortgage approval
• Due diligence condition: gives you time to review the LIM, title, geotech, and anything else
• OIO consent condition: if you need overseas investment consent (can take months)
• Builder's inspection: less common for vacant land, but relevant if there are existing structures

Your lawyer will help you draft conditions that protect you without making your offer so conditional that the vendor picks someone else.

How the offer process works (by sale method)

The process differs depending on the sale method. Here's what to expect for each:

Negotiation / Price by negotiation

This is the most common method for vacant land, and the one we used. The process is straightforward:

1. You sign the S&P agreement with your conditions, offer price, and proposed settlement date
2. The agent presents it to the vendor
3. The vendor accepts, rejects, or counters (signs back with changes)
4. You and the vendor go back and forth until you agree, or don't
5. Once both parties sign the same terms, you have a binding conditional agreement

This method gives you the most flexibility. You can include conditions, propose your own settlement date, and negotiate on price. If the vendor has multiple offers, they may ask for your "best and final."

Deadline sale

All offers must be submitted by a set date and time. The process:

1. You prepare your offer (with conditions, price, and settlement date) and submit it before the deadline
2. The agent collects all offers and presents them to the vendor together
3. The vendor reviews all offers and chooses one, negotiates further, or rejects all
4. You won't know what other buyers offered or how many offers were submitted

With a deadline sale, you get one shot to make your best offer. You can still include conditions, but a cleaner offer (fewer conditions, higher price) is more likely to be chosen.

Auction

Auctions are less common for vacant land but do happen. The key difference is that the winning bid is unconditional:

1. You must complete all due diligence and arrange finance before auction day
2. On the day, bidders compete openly. The highest bid above the reserve wins
3. If the reserve isn't met, the highest bidder may negotiate with the vendor afterwards
4. The winning bid is binding immediately, with no conditions. The deposit is due on the spot

Tender

Similar to a deadline sale but more formal. Offers are sealed and must follow a specific format set out in the tender documents. The vendor is not obligated to accept the highest offer. Tenders are more common for commercial land or high-value properties.

Researching comparable sales

Before you decide what to offer, find out what similar sections nearby have actually sold for, not just what they were listed at. You can ask your real estate agent for recent sales data within a 5-10 km radius.

Buying pre-title (off the plan)

Many new subdivisions sell sections before the title has been issued. The developer is still completing earthworks, roads, or council sign-off, and the individual lot titles haven't been created yet. You sign a Sale and Purchase agreement now, but settlement doesn't happen until the title comes through, which can be months away, sometimes longer.

• Sunset clause: the agreement will have a date by which the title must be issued. If the developer can't deliver by then, either party can cancel. Check this date carefully.
• Price lock: buying early can mean a better price, since developers often raise prices as the subdivision progresses and sections sell.
• Risk: you're committing to land you may not be able to walk on yet. The finished section might differ from the plans (contour, drainage). Your conditions should account for this.

Your lawyer should review the agreement with extra care if you're buying pre-title. The terms around delays, cancellation, and what happens to your deposit if the developer doesn't deliver are critical.

08Go unconditional

Once you've signed a conditional agreement, the clock starts on your conditions. You need to satisfy (or waive) each one by its deadline.

Satisfying conditions

• Finance: your bank issues formal approval. Send confirmation to your lawyer.
• Due diligence: you've reviewed the LIM, title, and any reports. If something is unacceptable, you can negotiate or withdraw (depending on how the condition is worded).
• Any other conditions: OIO consent, building consent, etc.

Your lawyer confirms each condition in writing to the vendor's lawyer. Once all conditions are satisfied, the agreement becomes unconditional.

Deposit

The deposit (usually 10% of the purchase price) is typically due when the agreement goes unconditional, or on a date specified in the agreement. It's paid into the real estate agent's trust account (or your lawyer's trust account) and held there until settlement.

09Settlement day

Settlement is the day the land officially becomes yours. Your lawyer handles almost everything.

What happens

1. Your lawyer prepares a settlement statement showing the purchase price, deposit already paid, any adjustments (rates, etc.), and the balance due
2. You transfer the balance to your lawyer's trust account (do this a few days early to allow for international transfer delays)
3. On settlement day, your lawyer transfers the funds to the vendor's lawyer
4. The vendor's lawyer confirms receipt and releases the transfer documents
5. Your lawyer files the land transfer tax statement with LINZ (this is where your IRD number is required)
6. Your lawyer registers the transfer with LINZ. The title is now in your name

Rates adjustment

Council rates (property tax) are adjusted at settlement. If the vendor has pre-paid rates for the rest of the rating year, you'll reimburse them for the portion from settlement day onwards. Your lawyer calculates this automatically.

10After settlement

Congratulations, you own a section in New Zealand. Here's what comes next.

Rates

You'll start receiving rates bills from the council. These are typically invoiced quarterly. Rates on vacant land are generally lower than on built property, but they still apply.

Insurance

Vacant land doesn't need building insurance, but you may want public liability insurance in case someone is injured on your property. If you have a mortgage, your lender may require certain cover. Talk to an NZ insurance broker.

Building

If you're planning to build, your next steps are engaging an architect or designer, applying for building consent through the council, and hiring a builder. If your section has a build timeframe covenant, the clock starts at settlement. Section 3 covers the consents, the Building Code requirements that the site imposes on your design, and a checklist for the whole process.

Holding vacant land

If you're not building immediately, keep the section tidy (councils can issue notices for overgrown properties), maintain any fencing, and check your covenant obligations. Some covenants require you to start building within 1-2 years of settlement.