Background

You will be aware that next release of Landonline functionality is scheduled for April this year. LINZ will be conducting a nationwide seminar series on what additional options will be available and at least one member of your firm should attend.

Multiple mortgages and transfers

Release 3.0 will enable any number of transfers and mortgages to be included in the same e-dealing. Currently are no limits on the number of discharges in the same e-dealing. A key benefit of the multiple transfers option, is the ability to include back-to-back settlements in the same e-dealing, if appropriate. Complex transactions that include multiple mortgages will also be e-dealing capable.

Additional clauses

There are two options where a mortgage or transfer requires additional wording to be inserted. That can be as simple as adding a few paragraphs of text directly into the instrument. This could be by 'copying and pasting' from another document or by typing the relevant clause. There is sufficient space in those fields to include up to 8 or 9 pages of text, depending upon formatting.

The alternative is to attach a specific document, for example an office precedent of a restrictive covenant in a transfer. This is loosely analogous to attaching a document to an email. You will automatically be taken to the browser on your computer to make a selection of the appropriate document. The document will need to be in TIF file format. The software to convert a word document to TIF will be available from the Landonline website and is a relatively simple process.

Any attachment becomes part of the actual instrument in the same way as annexure pages would be part of a paper instrument. The attachments need to be completed prior to certifying and signing.

Accordingly, the need for scanning of paper documentation should be minimal for transfer and mortgage options introduced as part of this release. Your scanner will need to do multiple pages and ideally save as a TIF file. This is not essential, as you still have the option of converting to TIF format by using the software available from the Landonline website, but that will involve an additional step.

Not instantaneous Registration

Where additional clauses by adding text or an attachment are included, LINZ needs to process those instruments before registration. Accordingly, any e-dealings submitted that include such instruments will not be registered instantaneously, but only after processing by LINZ. The requisition process has been incorporated as part of the e-dealing process.

e-dealing - one party's interest

Landonline Release 3.0 will include the option of dealing with part interests. This will encompass dealing with one or more proprietor's interest, or part of their interest, and various options will be available on the Preparation screen.

Practically, this means that all relationship property settlements should be able to occur via e-dealing. Each party will be separately represented in the e-dealing. (Currently any such transaction must adopt a somewhat artificial approach whereby one solicitor is nominated to certify and sign on behalf of all proprietors. That solicitor usually accepts a delegated Authority and Instruction (A & I) from the other solicitor's client to effect registration. The solicitor accepting such a delegation must be satisfied that the certifications being made are correct and should make further inquiry as necessary to be certain of the basis for those certifications.)

Where circumstances require a unilateral severance of a joint tenancy, this will also now be able to be conducted by e-dealing.

Confirming Transferors & Transferees

A new feature when dealing with complex part interest optionswill allow you to display the final result of which transferors or transferees, and the respective shares, are being dealt with. This is particularly helpful where there are multiple proprietors with different holdings on different titles and only part of their interest is being dealt with.

This will enable a convenient check to ensure that the correct interests are being disposed of or acquired. There is of course the existing Display Resulting Ownership option, which effectively shows the names and shares as they will appear on the title when registered. This option is helpful even for a simple transaction. Simple common errors, such as showing family name first (ie transposing given and family names), will become immediately apparent.

Using Display Resulting Ownership as part of your client file checklist as standard practice would avoid this type of error.

Pre-validation Reminder

Closely linked with this is the pre-validate option. There is simply no excuse for an e-dealing to be rejected for any of the current automatically registrable (Auto reg) dealings. Pre-validation should occur on at least four occasions, namely:

1. After the dealing has been created and the instruments prepared
2. At the time of certifying and signing
3. Immediately prior to settlement
4. Immediately prior to submitting

Items 3 and 4 should be a pre-validation of the entire dealing (which checks all of the instruments in the dealing, including the other side's instruments in that dealing such as discharges.)

The most expedient method is to right click on the dealing in the Workspace tree and select the pre-validate option.

Duncan Terris
NZLS e-dealing Consultant
The Property Lawyer
Volume 9 Issue 1, March 2008