Article 1 - Cross-Lease Alert for Real-Estate Agents and property professionals

What the Hall v Geary High Court decision — and recent media coverage — means for your vendors and buyers

By Brent Clode

This document constitutes Article 1 in an ongoing series designed for real estate professionals, focusing on cross-leases, unit titles, and subdivision law and practice.

1. Why this matters

The recent High Court case, Hall v Geary [2025] NZHC 1004, and media attention link to NZ Post article have exposed major risks with cross-leases. Cross-lease titles are more restrictive and legally unstable than many realize, impacting about 20% or 214,000 of New Zealand’s homes.

2. Summary of Hall v Geary

The case concerned a large swim-spa installed in an exclusive-use yard of a cross-lease property, which a neighbour found visually intrusive.

• The High Court determined the spa was a “structure” due to its size, appearance, and installation method.
• Unanimous written consent from all co-lessors was required for any structure in exclusive-use areas.
• Consent could reasonably be withheld for reasons such as visual impact, loss of amenity, privacy concerns, or reduced property value.
• The Court ordered removal of the spa within two months for lack of consent.

Industry warning: Without co-lessor consent, structures may be removed by court order and can attract high remedy and legal costs, in this case about $150,000.

3. What counts as a “structure”?

According to Hall v Geary and case law, items like spa and swimming pools, sheds, cabins, retaining walls, decks, pergolas, air-conditioning units, solar panels, fences, large shades, or any noticeable semi-permanent structures all require unanimous consent. Installing these without co-lessor or landlord consent may create future legal issues for owners.

4. Key considerations for agents

• Flag unconsented structures early
  Do this before photos or marketing, ask your vendor for a copy of co-lessor consent (this in addition to Council building or land use consent).

• Compare Flat Plan and aerial photograph with actual property
  Mismatches mean defective title/remedy (further article coming).

• Suggest fee-simple conversion
  Converting before sale can: increase value, remove neighbour vetoes, lower risk and boost buyer confidence.