Territorial authorities have wide powers under the Resource Management Act (RMA) to impose conditions requiring the creation of easements on subdivision (including easements over or in favour of land that is outside the subdivision).
Such easements appear in a Memorandum of Easements on the relevant plan. In these circumstances, the easements must be created before the affected allotments are transferred into separate ownership, as provided in section 243(c) of the RMA.
Documentation to create the compulsory easement(s) should ideally be lodged with the plan deposit dealing. However, provided the allotments remain in common ownership, LINZ has no authority under the RMA to insist on the creation of compulsory easements at this stage. Instead, to enable the new title(s) affected by the easement condition to be issued, a section 243(c) RMA memorial is recorded. This acts as notice to affected landowners that LINZ cannot thereafter register a dealing disposing of the servient or dominant allotments until the compulsory easement(s) have been created.
As stated, it is preferable to have the documentation to create any compulsory easements lodged with the new title dealing to deposit the plan. If left until later when the affected lots are sold, this may cause avoidable last minute problems and delays.