Cross leases


May 19 2014


Cross leasing was a very popular form of subdivision in the 1960s as a means to avoid strict planning rules. Cross lease subdivision has now lost favour and these titles are considered inferior as there is always another landowner whose permission must be obtained to allow for any changes to the property. Cross leasing can be defined as a group of residents (usually between two and four) who share ownership of a piece of land with the homes built on that land then leased from the other landowners.

If the property you intend buying is on a ‘cross lease title’, you need to be aware of the many issues that come with this form of ownership. Many owners are often not aware of their obligations to the other owners under their lease believing that they have full ownership of the house and land.

The rights of the cross lease owner depend on the terms of the particular lease registered on the title. Any owner who wishes to undertake maintenance or development work to the property, will require the consent of the other cross-lease owners. If the building’s footprint changes, these changes must be amended on the property’s title.

Not all cross leases are the same. If you’re considering buying a cross lease property, it’s essential to get a copy of the lease agreement and go through this carefully with us before signing the Agreement.


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