Both Rothsay's property and the neighbouring one were for sale at the same time, and at some point the lot numbers were apparently mixed up.

Rothsay said he showed police his rates receipt and the sale and purchase agreement for his house to prove he owned it, but they did not believe him.

After seeking assurances from First Property Legal and Masterton District Council that he did in fact own the house he was living in, Rothsay said the council eventually backtracked.

"A guy from council turned up [at my home] and gave me a real fright. The police were right, I didn't own my house," he said.

"It's crazy. I still can't believe it. My life has been on hold for months."

In February, Rothsay received a letter from Gawith Burridge Lawyers saying it was the fault of either Harcourts, who sold the property, or Public Trust, which acted on behalf of the seller.

The letter stated the houses were initially signed over correctly, despite a mistake with the lot numbers, but then changed two months later because Public Trust had told Gawith Burridge there had been a mistake with the transfer.

"It's been a huge stress. I'm a builder, but too stressed to work consistently trying to sort it out. I'd like to get back on track," Rothsay said.

Gawith Burridge senior partner Bruce Wagg told Fairfax Media they had tried to resolve the matter. He denied any wrongdoing on the firm's part and said he had no further comment.

A spokesman for Public Trust said there was "complexity around the title" and they did not want to comment on what has caused this until it had been investigated.

Harcourts licensed agent Prue Hamill said the problem was a legal matter.

NZ Law Society property expert Duncan Terris said property mix-ups like this were very rare.

"It's the responsibility of the lawyer who makes the electronic sign off to make sure it's been done correctly. And to make sure the relevant background documents support the statutory certification," he said.

Detective Sergeant Aidan Neville said police were still trying to remedy the unique situation concerning the two River Road properties and their status under the Criminal Proceeds (Recovery) Act.

"We empathise with the individual and recognise that this is stressful for them. However, as more than one party is involved, it is taking longer than anticipated to resolve."

Stuff.co.nz