RMA Replacement Must Address Legal Uncertainty Affecting 270,000 Cross-Lease And Unit Title Homes

Auckland-based property consultant and Founder of CrossLeaseConverter.nz, Brent Clode, has lodged a formal submission on the Government’s proposed replacement of the Resource Management Act, warning that the reform fails to address systemic uncertainty affecting an estimated 270,000 existing cross-lease and unit title homes across New Zealand.

Clode says the issue centres on how councils interpret historic building permits and existing use rights — particularly where homes were lawfully constructed decades ago but face compliance barriers when owners seek to convert from cross-lease to fee simple title or restructure unit title developments.

“There is a widening gap between how the law was applied historically and how it is being interpreted today,” Clode said.

Cross-lease and unit title structures were widely used from the 1960s through the 1990s. While many owners are now seeking to convert to fee simple ownership or simplify unit title arrangements to improve lending, insurance, governance, and resale outcomes, Clode argues that inconsistent council interpretations are creating unintended barriers.

Land Information New Zealand data indicates there are approximately 270,000 existing cross-lease and unit titles nationwide affecting about 700,000 people, with significant concentrations in Auckland, Wellington, and Christchurch.

Clode’s submission calls for the replacement RMA framework to:

• Confirm the status of existing-use rights where buildings and services were lawfully constructed

• Clarify protection for historic infrastructure lawfully established under earlier statutory regimes

• Provide a streamlined pathway for title restructurings, including cross-lease and unit title conversions, that do not intensify environmental effects

“This is not about weakening environmental standards,” Clode said. “It is about legal certainty. When homeowners act in good faith and rely on historical approvals, the law should recognise that.”

He says failure to address the issue risks undermining housing supply efficiency and imposing unnecessary costs on ordinary property owners.

“With housing affordability already under pressure, the new planning framework should remove friction — not create more of it.”

Clode has asked the Select Committee reviewing the legislation to consider targeted amendments to ensure that historical compliance pathways are recognised and that title conversions are treated proportionately.

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