e-dealing watch points for practitioners

e-dealing watch points are continually being added to, and cover a variety of topics.

Variation of mortgage

When creating a Variation of Mortgage, any changes to the clauses and conditions should be entered in the Vary Clauses/Conditions field. However, if there are too many changes to fit in this field, these may be attached as an image.

In this situation, if there is no data in the other fields (screen shot 1), pre-validation will fail as none of the compulsory fields have been completed (screen shot 2).

Screen shot 1

Screen shot 2

To avoid a pre-validation failure, some information should be entered into the Vary/Clauses and Conditions field, e.g. "See attached image for details".

Transmissions require a statutory declaration - reminder

Transmission instruments are prepared electronically using the e-dealing template. These instruments require the following evidentiary information:

• an A&I form
• a signed statutory declaration, and
• the Death Certificate or Probate, or Certificate of Incorporation etc.

A statutory declaration should be completed by the applicant(s) in a separate supporting document that must be retained with the A&I form. The statutory declaration must refer to the relevant documents evidencing the event (e.g. Death Certificate etc).

For evidentiary requirements, refer to the Registrar-General of Land Documentary evidence for e-dealing certifications, page 4 e) Application for Transmission (updated June 2010).

For further information on transmissions, refer to:

• Transmissions - Do you still need a paper transmission as well as the statutory declaration? e-dealing FAQ
• Transmissions – statutory declarations and other issues
• Transmission and the e-dealing environment
• Transmission on death of surviving joint tenant

Statutory declaration forms:

• Executor or Administrator
• Survivorship Declaration

Relying on instructions from another practitioner is insufficient

Through LINZ’s compliance review process, there have been a number of instances where a certifying practitioner has incorrectly relied on instructions from another practitioner. Consequently, the Registrar-General of Land (RGL) has required the certifying practitioner to retrospectively obtain proper authority and instruction, and issued the practitioner with a qualified compliance certificate.

Example: A vendor’s practitioner requests a discharge from the chargeholder. The chargeholder’s lawyer then instructs the vendor’s practitioner to register the discharge.

This instruction is only sufficient if the chargeholder’s lawyer has specific written authority from the chargeholder to give such instructions. The RGL will require evidence of that authority in a compliance review. Similar mistakes occur for a new mortgage when a purchaser’s practitioner receives instructions from a mortgagee’s lawyer.

Certifying practitioners must obtain A&Is or letters of instruction from the parties themselves and not parties’ lawyers. A party’s lawyer can only give authority and instruction to a practitioner to certify for the party if the party’s lawyer is:

• the party’s authorised signatory (e.g. under the Companies Act 1993), or
• acting under the party’s written authority such as a power of attorney that includes specific power to issue such instructions.

If a party does not wish to instruct another party’s practitioner, then the party should instruct their own lawyer and their lawyer should certify and sign that particular instrument as the party’s representative.

To achieve this, multiple conveyancing professionals can be nominated for separate instruments and/or roles in a multi-party e-dealing. For more information, refer to the e-dealing user guide, section 5.

Common e-dealing rejection reasons updated

The most common e-dealing rejection reasons have been updated on this website for June 2010. These have been published, along with suggested prevention methods, to assist conveyancing customers with faster registration and to reduce rework.

We have also added the most common e-dealing instruments rejected to help you reduce your firm's rejection rate.

Vendor A&I forms and nominations

If there is a possibility that the purchaser’s name will change, the vendor’s A&I form should record the purchaser’s name as well as the words ‘and/or nominee’. If the purchaser’s name does change, evidence of the nomination (e.g. notice of sale) should be retained with the vendor’s A&I form.

For more information, refer to updated FAQ My vendor client is signing an A&I form today but in the future, the purchaser listed on the A&I form may change to a nominee trust or company. What should I do? on this website.

e-dealing FAQ updated

Frequently asked question How do I complete an e-dealing for a company in receivership or liquidation? has been updated on this website.