Mandatory e-lodgement just around the corner

With only one month to go until mandatory e-lodgement, it's time to shift into top gear and submit all your e-capable conveyancing work by e-dealing. Preparations should be well under way in your firm to ensure everyone is trained and ready for 23 February 2009.

The majority of firms are already submitting all their work electronically and the uptake figures are increasing weekly as firms clear their paper dealings and concentrate on using e-dealing. We strongly encourage all firms to be lodging at least 85% of their work by e-dealing by the end of January to prepare for mandatory.

If you need to refresh your memory on e-dealing after the Christmas break, you can refer to your Fact File and access our support tools on this website.

Here you can access the e-dealing Practice Tool, Quick Reference Cards and User Guide. Our Customer Support Agents can also be reached on 0800 ONLINE (665 463).

LINZ also offers one-off firm training for those who need extra assistance. If you think your firm could benefit, phone Julie Gillatt, e-dealing product/service owner, via 0800 ONLINE (0800 665 463) to book a suitable time.

Powers of attorney

Requirements for depositing powers of attorney (PAs) have been described in the article Enduring Powers of Attorney – recent legislation changes in the October 2008 edition of Landwrap.

The requirements, which apply to all PAs, are:

• For Template instruments and Image Only Instruments Requiring Certifications (A&I* required): a copy of the PA and the signed certificate of non-revocation should be held on file with the A&I. The PA does not have to be deposited with LINZ.
• For Image Only instruments to be signed by parties (no A&I required): if the instrument has been signed by an attorney the PA must be deposited with LINZ and an image of the certificate of non-revocation must be included in the e-dealing as part of the instrument image. If this instrument is in the same e-dealing as another instrument that requires certifications and A&I forms, then the PA must still be deposited with LINZ.

Note that a PA cannot be presented to LINZ for deposit by e-dealing. It must be presented manually as a paper document.

*Authority and Instruction

Entering names for companies, multiple transferee/s and mortgagee/s and non-standard information in transfers and mortgages

With the introduction of more complex transfers and mortgages to Landonline, it is timely to consider how these should be entered into the templates provided.

As a general rule, any details other than the name should not be entered in the name field. So if there is any other information relating to the name such as "as executor for the estate of...", this should not be entered in the name field. When entering a name, think about searching this title in the future and how would you search for the name (i.e. if you entered additional details and you later searched on the name only, you would not get a result).

Transfers

• Corporate names should only be entered in full into the "Corporate Name" field. They should never be split between the "Given Name" field and "Family Name" field, or entered into the Family Name field alone.
• Corporate names are any names other than a private individual e.g. Company Name as recorded at the Companies Office, Crown entities, councils, banks, Her Majesty the Queen etc.
• You need to use a separate line for each Transferee, e.g. if there were two companies to be displayed as the new registered proprietors then for the second name you would add a line and enter the company name in the "Corporate Name" field on the blank row.
• Only the transferee/s name should be entered in these fields; any other information such as "as executor for the estate of..." should be entered by selecting the complex mode and using the "Add Text" button.

The following are some scenarios for entering names for transferees.

Scenario 1: Corporate Transferee. Vendor (A) – John Thomas Smith is transferring to Purchaser (B) – The Minister of Conservation on behalf of Her Majesty the Queen (Corporate name)

• How do you complete the template?
  • Step 1 – check Transferor/s Name/s are correct
  • Step 2 – enter the transferee name in the correct field. In this instance in the "Corporate Name" field only enter Her Majesty the Queen
  • Step 3 – click "Display Resulting Ownership" to confirm how this will look on the title

Scenario 2: Two Corporate Transferees DMP Property Developments and Gordon Consulting Limited

• How do you complete the template?
  • Step 1 – check Transferors Name/s are correct as above
  • Step 2 – enter the transferee name in the correct field. In this instance the Corporate Name field
  • Step 3 – click Add and enter second transferee name on the new line. In this instance the Corporate Name field
  • Step 4 – click Display Resulting Ownership to confirm how this will look on the title

Scenario 3: Two transferees – (A) John Thomas Smith as executor of the estate of … and (B) Gordon Consulting Limited

• How do you complete the template?
  • Step 1 – select correct Mode (Radio Button) Part of Land/Complex
  • Step 2 – check Transferor/s Name/s are correct and check the Transferor column for each transferor
  • Step 3 – click Display Transferor; this confirms that you have selected the correct Transferor/s
  • Step 4 – enter the transferee name in the correct field. In this instance (A) John Thomas Smith in the Given Name/s and Family Name fields
  • Step 5 – click Add and enter (B) Gordon Consulting Limited in Corporate Name field on the new line
  • Step 6 – click Display Transferee this displays the names entered and how they will be shown on the title
  • Step 7 – click Add Text entered in the extra information to display in the instrument e.g. as executor of the estate of...
  • Step 8 - click Display Resulting Ownership to confirm how the names will appear on the title
  • Step 9 – click Preview to check that the additional text that has been entered is correct and there are no spelling mistakes

This scenario would also be used for:

• A, B and C as trustees for the time being of the XXXXXXXXX
• A for her lifetime or the earlier expiry of Lease...

Mortgages

Let's have a look at some complex mortgages, those with multiple mortgagees and extra information or clauses.

• Always enter each mortgagee on a separate line
• Use the add button to give you a blank row
• Ensure the Joint check box is checked if required
• If mortgagees are to have shares then uncheck the Joint check box and enter the share in the Share of Mortgage field
• For any information other than the mortgagee name use the Part of Land/Complex Mode and click the Add Text button to enter the information e.g. Trustees for the time being of...
• Always preview to check that the details display correctly

Scenario: John Thomas Smith and Gordon Consulting Limited are the current registered proprietors they have mortgaged their property with three private mortgagees (A) – Ethel Margaret Floyd (B) – Duane Marcus Floyd and (C) - Angel Kirk Santa

• How do you complete the template?
• Step 1 – select correct Mode (Radio Button) in this case All of Title (this is the default)
• Step 2 – check Mortgagor/s Name/s are correct
• Step 3 – click in Name field and enter mortgagee (A) Ethel Margaret Floyd in blank row
• Step 4 – click Add to insert a blank row and enter mortgagee (B) Duane Marcus Floyd
• Step 5 – click Add to insert a blank row and enter mortgagee (C) Angel Kirk Santa
• Step 6 – complete relevant Mortgage details i.e. Memorandum Number, Type of Mortgage (All Obligations or Fixed Sum), Priority Amount
• Step 7 – click Preview to check the mortgagee names displayed are in the correct order and mortgage details entered are correct.

e-dealing watch points for practitioners

e-dealing watch points are continually being added to. You will find these and links to other e-dealing related articles on this website.

• Translation of legal documents
• Risks of not checking e-dealing details
• Pre-validation failure may still allow registration

Translation of legal documents

When a solicitor is dealing with the translation and interpretation of a language other than English, they are able to use the services of The Department of Internal Affairs Translation Service. This service can translate over 70 languages.

Risks of not checking e-dealing details

While e-dealing transactions are generally completed without difficulty, cases have emerged where mistakes have been made due to simple clerical errors that could have been avoided with a few simple checks prior to registration. If these checks are not made and mistakes occur, practitioners will invariably face additional time and cost in order to rectify the problem.

It is also important to remember that while in most cases such errors can be corrected (albeit with some inconvenience), any error has the potential to cause significant liability in particular circumstances.

Below are some examples of the kinds of clerical errors that can easily be avoided.

Common requests to correct mistakes on register	Risk	Consequences if not fixed prior to registration
Discharge Wrong Title reference entered in the Create Dealing screen for Auto-Reg dealings	The mortgage is incorrectly discharged off the wrong Title	Bank has no security over the title. Bank will need to be contacted to give authority to re-register the wrongly discharged mortgage and then register the discharge against the correct title.
Mortgage Wrong Title reference entered in the Create Dealing screen for Auto-Reg dealings	The new mortgage is incorrectly registered on the wrong Title	Bank has no security over the Title. The bank will need to authorise the discharge of the mortgage incorrectly registered and then the mortgage will need to be registered on the correct Title.
Transfer Wrong Title reference entered in the Create Dealing screen for Auto-Reg dealings (Example: vendor owns land in more than one title and the wrong title is selected)	The Title is incorrectly transferred to new owners	Two new transfers will need to be completed to correct the error. A&I forms will need to be completed by the relevant parties. Extra fees will be incurred and time involved to re-do the work.
Purchaser's name incorrectly spelt or entered in the wrong order i.e. Surname in Given name field	Title will show the Surname and Given names incorrectly	With the introduction of Correction of Name in Release 3.1 (September 2008), it is no longer correct to complete a correcting e-Transfer. Use the Correction of Name to update the Title with the relevant supporting evidence being held on file for compliance review.

Errors such as these should be corrected by the practitioner who made the error after obtaining the relevant authorisation from the affected parties as noted above.

What can I do to prevent these types of mistakes occurring?

• Confirm the Title reference in the Affected Titles field is correct when you prepare your Instrument – check reference with the Title search on file
• Check names from the proof of identity to confirm correct spelling
• Use the tools available in the e-dealing system to assist with the preparation and checking of transaction details:
  • Display Transferor (displays the selected transferor name/s and any shares)
  • Display Transferee (displays the names as you have entered them in the Prepare Transfer screen)
  • Display Resulting Ownership (shows you how the final result will look on the title)
  • Preview
  • Pre-validate

Pre-validation failure may still allow registration

There are instances in Landonline when an instrument will fail pre-validation but can still continue.

Following are some common instances when pre-validation will fail but the instrument and dealing may still be registered.

Situation	Reason for failure	What should you do
New Title dealing with Easement instrument/s following the OCT (Order for New Titles)	The easement instrument will be over the new Title references that will have a status in Landonline of either pre-allocated or pending. The system recognises these titles as not yet issued and for that reason pre-validation will fail for these titles (i.e. status is not Live or Part Cancelled yet).	Don't revert back to the head Title for an easement instrument (EI) that follows an OCT. If you do and submit the dealing, it will be rejected or requisitioned to change it back to the new Title references Continue to prepare your instrument against the new Title references; it's OK for it to fail. In fact, it would be a concern if it didn’t fail for the titles not being Live or Part Cancelled Make sure it hasn't failed pre-validation for any other valid reason If you're unsure about the reason why something has failed, ring 0800 Customer Support (0800 ONLINE) Continue to submit your dealing for registration
Mortgage (M) following a Transfer in exercise of Power of Sale (TPS)	The TPS instrument is an Image Only instrument, so the names that pre-populate in the mortgage will need to be edited to update the mortgage with the new registered proprietor/s names. The new registered proprietor/s names won’t be entered into the system until LINZ staff process the Power of Sale instrument. The mortgage will fail pre-validation because the registered proprietors don’t match the registered proprietors currently on the Title.	Continue to prepare your instrument If you're unsure about the reason why something has failed, ring 0800 Customer Support (0800 ONLINE) Continue to submit your dealing for registration