A $4.3 million Coatesville home owned by Kim Dotcom, and occupied by his heavily pregnant wife and their children, was seized by officials today.
The 2.16 hectare property sits alongside a huge $30 million mansion, which is leased by Dotcom.
He was not allowed to purchase the larger residence as he did not meet the Overseas Investment Office's "good character" test.
But the Megaupload founder was permitted to buy the 565 square metre neighbouring property because it is less than five hectares of non-urban land.
Dotcom finalised the purchase of the property in November last year.
The property was not among the $16m in assets - including luxury cars and expensive art works - seized when Dotcom was arrested last month.
The Auckland High Court granted an order on February 1 allowing the Official Assignee to "secure, inspect and value the property". This includes vehicles and jewellery at the property.
Today the home was seized by staff for the official assignee, meaning the house cannot be sold.
Dotcom's wife, Mona, and the couple's three other children have been living in the smaller house since the police raided the mansion.
Mona is pregnant and due to give birth to twins in April. Despite the seizure the family have been allowed to stay living there for now.
Dotcom and three other men were arrested on January 20.
The men face charges in the US of racketeering, copyright infringement and money laundering. Extradition papers are expected to be filed on February 22.
Dotcom has denied any wrongdoing.