One of the most stressful parts of buying or selling property in New Zealand is the language. CV, RV, LIM, SPA, LVR, unconditional, chattels, ring-fencing: the words pile up fast, and it is hard to make a confident decision about a place you want to call home when you are not sure what half the paperwork means. This glossary is here to fix that. It explains the property terms you will genuinely run into during a NZ purchase or sale, in plain English, with enough detail to know what matters and why. It is especially useful if you are new to the country or returning after years away, when the process can feel unfamiliar even though the goal, a safe and settled home, is exactly the same. This is general information to help you understand the process, not legal or financial advice, so confirm anything specific to your situation with your lawyer, agent or adviser.
Pricing and valuation terms
CV (Capital Value) and RV (Rateable Value) are essentially the same thing: the value a local council assigns to a property mainly to work out rates. The CV is updated every few years and is not the market price, so a home can sell well above or below its CV. Treat it as a rough reference, not a valuation. A registered valuation is a formal market value prepared by a registered valuer, often required by a lender. An appraisal is an agent's indicative price range, useful for planning but not binding and not the same as a registered valuation. Rates are the annual charges the council bills the property owner for local services. When you see a figure described as indicative, it means a guide only, not a guaranteed or binding number, which is exactly how any estimate from a tool like ours should be read.
Buying and offer terms
A Sale and Purchase Agreement (SPA) is the legally binding contract between buyer and seller, and you should have your lawyer review it before signing. A conditional offer means the purchase depends on certain things being satisfied, such as finance, a building report, a LIM or a valuation, within a set timeframe. An unconditional offer has no such conditions, so once accepted you are committed to buy, which is a powerful position but carries real risk if your finance or checks are not sorted. Going unconditional is the moment you cross from looking to legally committed. The deposit is the amount paid on signing or going unconditional, commonly held in the agent's trust account until settlement. Settlement is the day the balance is paid and the property legally becomes yours, when you typically get the keys. Due diligence is the period and process of checking everything (finance, LIM, building report, title, chattels) before you commit. Gazumping is when a seller accepts a higher offer from someone else before your deal is finalised, which can happen with by-negotiation sales.
Property checks and documents
A LIM (Land Information Memorandum) is a report you order from the council summarising its records about a property: building consents, code compliance certificates, known natural hazards like flooding, rates, drainage and zoning. It does not inspect the physical building, so most buyers pair it with a building report. A building report (or building inspection) is a professional check of the property's physical condition, looking for issues like moisture, structural problems and unconsented work. The title is the official record of who owns the land and what rights or restrictions apply, such as easements or covenants, and your lawyer reviews it. Chattels are the moveable items included in the sale, like the oven, dishwasher, curtains, light fittings and heat pump, and they are listed in the agreement, so check the list carefully because what stays and what goes is often a surprise. Healthy homes standards are the rules rental properties must meet for heating, insulation, ventilation, moisture and draught-stopping, which matters if you are buying an investment or renting one out.
Finance and tax terms
LVR (Loan-to-Value Ratio) is the size of your loan compared with the property's value. A lower LVR means a bigger deposit, and lenders have rules about how much they can lend at high LVRs, which affects how much deposit you need. The deposit here means the share of the price you fund yourself, distinct from the deposit paid at signing. KiwiSaver first-home withdrawal lets eligible members withdraw most of their KiwiSaver savings to help buy their first home. The First Home Loan and First Home Grant, administered through Kāinga Ora, can help eligible first-home buyers with a lower deposit or a cash contribution, subject to income and price caps, so check current eligibility. The bright-line test is an income tax rule: if you sell certain residential property within the current bright-line period and it was not your main home, you may pay tax on the gain. Ring-fencing limits how rental property losses can be offset against your other income. Fixed and floating describe mortgage interest rates: fixed is locked for a term, floating moves with the market. Every figure and rule here is general guidance current at the time of writing, so confirm your numbers and eligibility with a lawyer, mortgage adviser or IRD.
Ownership, sale methods and getting help
Ownership types matter in NZ. Freehold (fee simple) means you own the land and anything on it outright, the most common and straightforward type. Cross-lease means you share ownership of the underlying land with others and lease your part, which can come with restrictions, so your lawyer should check it. Unit title is common for apartments and townhouses: you own your unit and share common areas through a body corporate, which charges levies. Methods of sale include auction, where buyers bid openly and the sale is usually unconditional on the fall of the hammer; deadline sale or tender, where offers are submitted by a date; and by negotiation or private treaty, where there is an asking or guide price and offers are negotiated. An agency agreement is the contract you sign with a real estate agency to sell your property, setting out commission and the marketing plan. Conveyancing is the legal work of transferring ownership, handled by your lawyer or conveyancer. If any of these terms still feel unclear for your situation, that is normal, and it is exactly when getting matched with a licensed local professional through Maifang, free and with no obligation, turns the jargon into a plan you can act on.
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In plain English: In plain English: NZ property jargon mostly breaks into pricing terms (CV, RV, appraisal), offer terms (conditional, unconditional, SPA, settlement), checks (LIM, building report, chattels), finance and tax (LVR, deposit, KiwiSaver, bright-line) and ownership and sale methods (freehold, cross-lease, unit title, auction, negotiation). Learn the words, then confirm your own situation with your lawyer, agent or adviser.
General information, not personalised real-estate, legal or financial advice. Confirm your situation with a licensed adviser. Read the full disclaimer →