This article suggests steps you can take to minimise the impact of Landonline unavailability on your business, especially on settlement day.
There are three fundamental practices that can mitigate the unavailability of Landonline on settlement day.
These are:
- Obtain guaranteed searches prior to settlement day
- Certify and sign the e-dealing prior to settlement day, and
- Settling without Landonline.
Guaranteed searches (GSN)
The GSN may be obtained anytime within the first operative period and it is recommended that this occur before the day of settlement.
The 'first operative period' is specified in Section 172A of the Land Transfer Act, i.e. "first operative period, in relation to any transaction to which this section applies, means the period of 14 days commencing with the 13th day preceding the date on which the transaction is settled".
Settlement - Certify and Sign in advance
Solicitors are recommended to certify and sign the e-Instruments in advance of settlement day.
This practice is secure in that settlement can only be effected once all e-Instruments in the e-dealing have been released.
An e-dealing cannot be submitted (registered) until all instruments in the dealing are Certified and Signed and then Released.
Settling without Landonline
Settlement can still occur between the parties using an undertaking regardless of access to Landonline. This process is a continuation of practice prior to Landonline.
This excerpt is from the NZLS guidelines to e-dealing, p25, Guideline W:
"The release should occur as soon as possible after settlement and always on the day of settlement.
If the vendor's lawyer cannot access the Landonline workspace due to malfunction of either the lawyer's computer system or Landonline, the vendor's lawyer must facilitate such release as soon as practicable."
This guideline explains the completion of settlement irrespective of the availability of Landonline by utilising an undertaking between solicitors to settle for the parties.
All documents can then be released as soon as practicable when access to Landonline is restored.