Freehold (fee simple)

Freehold — technically fee simple — is the most complete form of land ownership available in New Zealand. The owner holds both the land and any buildings on it indefinitely, with no ground rent and no lease term.

Why it matters

Freehold is the default expectation for most buyers and the most straightforward title type to finance, insure and sell. Banks lend against it most readily. Other title types carry conditions that affect value, saleability and lending.

The variants

Fee simple is the common form. The Land Transfer framework also recognises life estates and stratum estates (which is how unit titles sit within freehold).

Common misunderstanding

"Freehold" is also used loosely to mean mortgage-free — as in "the property is freehold," meaning the loan is repaid. That's a different meaning from the title type, and the ambiguity causes real confusion in conversation. Freehold as a title type says nothing about whether there's a mortgage on it.

Freehold doesn't mean unrestricted. Covenants, easements, zoning and building consent requirements still apply.

Related terms

Last reviewed: 1 August 2026 · ---

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