Release 3.1 roadshow off to a great start

The roadshow crew (LINZ and NZLS Property Law Section representatives) has been out on the road now for two weeks delivering the Landonline Release 3.1 updates to conveyancing professionals.

Nearly 2,000 registrations have been received for the presentations and workshops being held around the country. Feedback from attendees has so far been positive.

Lani Kennedy, solicitor at Macalister Todd Phillips, attended the presentation held in Queenstown. "The presentation was excellent and the changes to e-dealing for Release 3.1 were explained clearly and in a practical manner," says Lani. "I also found the materials we received at the presentation easy to follow and understand. The roadshow is definitely well worth attending."

The roadshow is your best opportunity to be trained in the latest changes, either at a presentation or in a practical workshop. It also gives you the opportunity to ask any questions you may have. This is the last roadshow before 100% e-lodgement becomes mandatory on 23 February 2009.

You can register online if you haven't already done so. This invitation is open to all firms and we encourage every firm to send along at least one representative.

As well as going out on the road to deliver training, we've also updated all LINZ's e-dealing training material, including the e-dealing Practice Tool, which is now live on our website.

Five new practice tool modules are now available...

• Create e-dealing – New Titles
• Transmission – Executor
• Transmission – Survivorship
• Notice of Claim
• Memorandum of Priority

The practice tool is a good way for you to get used to the new functionality before completing one of the new instruments by e-dealing. After attending a Release 3.1 presentation, we recommend you access the practice tool in your office and have a look at some of the new screens in action.

Release 3.1 Image Only certifications

The last e-dealing release before 100% e-lodgement becomes mandatory is just around the corner. This release sees the introduction of the remaining seven Template instruments, including the long awaited Caveat and Transmission options. We will also be introducing 177 Image Only instruments, which means nearly all of your conveyancing work will be able to be completed electronically.

The seven new Template instruments will require the standard e-dealing certifications under section 164A of the Land Transfer Act 1952. Some of the new Image Only instruments will also require certifications. As a rule of thumb, if the instrument is of a type that would have required execution by the landowner in the paper environment, then the corresponding Image Only instrument will require the standard e-dealing certifications as to identity, authorisation and statutory compliance. Because this replaces the traditional methods of execution and signing correct, you won't need to have your clients sign these instruments.

Most firms will already hold the forms for completing an Image Only instrument electronically, such as an Easement Instrument form. If you don't have these forms electronically you can still use the paper form which you can scan and attach to your dealing.

LINZ has developed new forms that exclude provision for signatures and witnessing for the following Image Only instruments:

• Form A - Transfer in exercise of mortgagee's power of sale
• Form B - Easement instrument to grant easement or profit à prendre, or create land covenant
• Form C - Easement instrument to surrender Easement or Profit à prendre or Land Covenant
• Form D - Easement variation instrument to vary Easement or Profit à prendre or Land Covenant
• Form E - Encumbrance instrument
• Form F - Lease instrument
• Form G - Lease variation instrument
• Form H - Lease surrender instrument
• Form I - Licence to Occupy under Part 7A Land Transfer Act 1952
• Form J - Surrender of Licence to Occupy
• Form K - Application to Note Merger of Lease
• Form L - Annexure Schedule

It will still be permissible to use the existing forms, in which case the signature panels should be ruled through and deleted.

In line with existing e-dealing requirements, you will need to retain supporting documentation if the instrument you are registering requires a section 164A certification. In addition to the standard Authority & Instruction (A&I), some of these instruments will also require retention of other evidence such as statutory declarations and copies of probates etc. In the case of caveats, however, a full A&I is not required because, as in the paper system, these do not require the same level of written authorisation. The detailed evidence retention requirements are available on this website.

There are, however, some exceptions and some Image Only instruments will not require the standard e-dealing certifications (see Landwrap May 2008 and Landwrap August 2008).

These exceptions are generally administrative items authorised by other legislation, which do not require the same level of landowner identity verification or execution. Examples would include most notices, consents, certificates and applications prepared by government agencies or territorial authorities. Such instruments may be completed and signed in the traditional paper format and lodged for registration using the Image Only functionality. Because a section 164A certification is not required for these instruments, there is no requirement to retain an A&I or other supporting evidence for these transactions.

We've published a full list of e-capable instruments on Landonline. Here you can see which instruments require certifications and A&I forms to be attached and which ones won't require A&I forms.

Although virtually all transactions will be capable of e-lodgement, in some cases LINZ will ask for paper documentation to be submitted (e.g. share certificates relating to licences to occupy, which is evidence in support of applications based on adverse possession). And in some rare instances, e-lodgement will not be possible (i.e. court executed documents and dealings with 'no survivorship' land).

The best way to learn about the key changes in Release 3.1 is to attend one of the Release 3.1 presentations. If you haven't already, you can register by completing the online registration form.

If you can't make it to one of the presentations, read the Release 3.1 Practical Bits 'n' Pieces (doc 901KB) document, written by Duncan Terris (NZLS Property Law Section), which has more detail about the certifications' process.

Information on certifications is also available in the Regulatory Information and Guidelines section of the Landonline website, and on the NZ Law Society's website: www.lawsociety.org.nz

e-dealing audit process now in place

LINZ's risk, system and controls–based e-dealing audit pilot project has been completed. Law firm e-dealing audits will now be routinely scheduled throughout the year.

Four law firms were audited during the pilot, which began in August 2006. These firms were given the opportunity to comment on the audit approach and overall methodology. LINZ has since audited 10 law firms and the feedback has been positive.

The e-dealing audit approach recognises the legal responsibilities held by the conveyancing professionals and the Registrar-General of Land (RGL) for the land titles registration process. It also encourages the continuous improvement of conveyancing practices and a higher level of audit coverage and assurance for the RGL.

See the article e-dealing quality assurance update in the July edition of Landwrap for further information.