The only discharge is a discharge of mortgage, right? WRONG

Virtually all types of discharge, release and withdrawal can be registered, all in the one e-dealing. All of the following can be registered by e-dealing for only $21 with no multi title fee:

• Discharge of Mortgage
• Withdrawal of Caveat
• Discharge of Family Benefit Charge
• Discharge of Statutory Land Charge
• Withdrawal of Notice of Claim
• Discharge of Charging Order
• Discharge of Compensation Certificate
• Discharge of Encumbrance
• Partial discharges of all of the above

The solicitor has to be involved on settlement day, right? WRONG

The solicitor only needs to be involved in the certifying and signing of each instrument. That can and should be done well before settlement.

As soon as the authorising document is received the solicitor can certify and sign. For example, this can be done as soon as the discharge of mortgage is received. If any change is made to the electronic instrument after the solicitor has certified and signed the certifications are automatically deleted which protect against any changes being made without the solicitor's knowledge.

The same process occurs at settlement for an e-dealing as for a paper one. Namely, the same person who attends on settlement and hands over the paper instruments (or posts them) would electronically 'release' those documents on settlement.

There is no benefit if the other side is not e-dealing capable. WRONG

There are a number of examples where e-dealings can be utilised even if the other side cannot e-deal:

• All internal client refinances can be done by e-dealing.
• Trust transfers can occur by e-dealing 'in-house'.
• All discharges can be done by e-dealing if acting for a vendor - even if the other side is not e-dealing. (See Guideline Q of the NZLS Guidelines for the use of Landonline for an Electronic Transaction - accessible from www.lawyers.org.nz or www.propertylawyers.org.nz).
• A new mortgage on a purchase can be 'queued' behind the paper transfer dealing as an e-dealing.

It is too easy to make a mistake and accidentally register an instrument. WRONG

There are a number of automated checks and balances built into the process that prevent registration until you are absolutely sure. Some of the safeguards are as follows:

• Nothing can be registered unless the solicitor has certified and signed.
• Registration cannot occur unless the instrument has been 'released', whether by you or the other side.
• A free 'pre-validation' check will confirm that the e-dealing will be successfully registered.
• This pre-validation check will not let you register the incorrect name on a mortgage or the wrong CT for a transfer.
• A final check registration fees warning will display when the 'submit' button is pushed, giving a last opportunity to abort.

There is no cost saving. WRONG

The costs of registration are currently less than half for e-dealing as compared to paper at $21 and $50 respectively. The agency fee saving of $20 - $25 is also a factor in providing cost estimates.

Proficient users find that there is a time saving. For example, firms no longer need to type mortgages and abstracts.

Duncan Terris
NZLS e-dealing Consultant
The Property Lawyer
Volume 6, Issue 1, Summer 2005