Paper vs electronic dealings
Since 100% e-lodgement became mandatory on 23 February 2009, LINZ has often been asked why it cannot make the same changes to an electronic lodgement that it was able to make to a paper lodgement for the customer.
Why is it that LINZ staff could change a title reference and other details, or the order of registration of instruments in Landonline from information entered by the lodging firm on paper lodgement forms, but not for an e-dealing? Following are some of the differences and implications of making changes to an electronic lodgement.
In the paper environment, the authoritative documents (as to the type of transaction to be registered and the affected titles) were the instruments themselves. LINZ’s lodgement forms served only as a guide for LINZ as to the order of registration. Minor inaccuracies in title references and instrument codes could be corrected, and the order of registration could be changed, to ensure instruments were registered correctly in Landonline without materially changing the instruments themselves, as long as these had been signed by the parties and certified as correct by their solicitors.
With e-lodgement, title references, instrument codes and the order they are presented for registration are all elements of the e-dealing information electronically signed and often certified by the lodging practitioner(s) on the authority of the affected parties. LINZ staff cannot make material changes to this information without seriously compromising the electronic signing and certification process that e-lodgement depends on.
Below are some examples of changes LINZ is often asked to make, and why they can or cannot be made to an e-dealing.
Instrument code incorrect
In the paper environment, the code for the instrument type could be incorrect on the lodgement form, but as the correct instrument code was apparent from the instrument itself, LINZ staff could correct the instrument code on the lodgement form to ensure the instrument was registered correctly in Landonline.
In e-dealing, customers create the types of instruments they intend to be registered by selecting the relevant instrument codes in the Create Dealing screen. The instrument types then appear on authority and instruction (A&I) forms, generate memorials and determine what searchers will see once the instruments are registered. Instrument types also determine the required practitioner certifications where applicable, and are part of the information the practitioner has verified he/she intends to be registered by electronic signature.
Sometimes it is apparent the customer has selected an incorrect or inappropriate instrument code in an e-dealing. LINZ staff cannot alter the instrument type, without compromising the practitioner’s signature and other matters. LINZ will try to process the dealing if it is possible to achieve the intent of the parties using the instrument type selected by the customer. Otherwise the dealing has to be rejected so that the customer can select the correct instrument type and re-sign and certify.
Title reference incorrect
In the paper environment, a title reference could be incorrect on the lodgement form, but the correct title reference would be shown on the instrument itself. LINZ staff could correct the instrument code on the lodgement form to ensure the instrument was registered correctly in Landonline.
Sometimes incorrect title references were shown in instruments, particularly in new title dealings. Often instruments that should have affected the head title were shown as affecting the new titles and vice versa. Where appropriate, LINZ staff would correct the title reference(s) in Landonline with customer confirmation.
With e-lodgement:
- Electronically-registered (Auto-Reg) – Landonline’s electronic business rules prevent incorrect title references being entered if the proprietorship details (etc) do not match the instruments being prepared. If the dealing passes these business rules and is submitted, it is automatically registered without being seen by LINZ staff.
- Lodge with template instruments – again, business rules prevent incorrect title references being entered if the proprietorship details (etc) do not match the instruments being prepared. If the dealing passes business rules and is submitted, LINZ staff cannot alter the title references, as Landonline would then be inconsistent with both the signed (and often certified) instrument and A&I form. If LINZ staff find title references are incorrect, they will ask the customer to correct the references – by rejection if the relevant instrument is certified, and by requisition if no certifications are involved.
- Lodge with image instruments - (particularly new title dealings) title references are sometimes inconsistent with the attached image. It is also common for title references in the image to be incorrect (e.g. image only instruments in new title dealings often refer to the cancelled title instead of a new title). If LINZ staff find title references are incorrect, they will ask the customer to correct the references – by rejection if the relevant instrument is certified, and by requisition if no certifications are involved.
Order of registration incorrect
This is a common issue, particularly with new title dealings. Examples include:
- C224 lodged after OCT but shows the cancelled title as the affected title.
- CONO lodged before OCT but shows new title references as affected. This also applies to other council documents such as C240 covenants and C232 esplanade strips.
- Transfer of one of the new titles included before OCT.
In the paper environment, LINZ staff could correct the order of registration on the lodgement form to ensure the instruments were registered correctly in Landonline.
In an e-dealing, LINZ staff may be able to change the order of registration of instruments, but must get confirmation/acknowledgement in writing from the submitting firm, either as an email or an electronic request.
There are cases where LINZ cannot change the order of registration, and will process the dealing if it is possible to achieve the intended outcome. Otherwise the dealing has to be requisitioned or rejected.
Instrument not required
This commonly occurs in new title dealings where multiple OCTs are lodged when only one is required, or an OCT is lodged when the new titles can be issued from another document in the dealing, e.g. an application to deposit a unit plan (UAPP).
In the paper environment, LINZ could have made the appropriate amendments to the lodgement form.
With e-lodgement, LINZ does not have the ability or the authority to delete an electronically lodged instrument. LINZ will process the dealing if it is possible to achieve the intent without deleting a superfluous instrument. Otherwise the dealing has to be requisitioned or rejected.
