Common e-dealing rejection reasons

 

Listed below are the most common instruments rejected and e-dealing rejection reasons for July 2011, along with suggested prevention methods. These have been published to assist our conveyancing customers with faster registration and to reduce rework.

The most common instruments rejected are as follows:

Most common instruments rejected July 2011 Actual Average over the last six months
1 OCT 120 117
2 T 86 75
3 EI 86 86
4 M 62 46
5 L 43 61
6 X 42 29
  Total electronic rejections by above instruments 439 414
  Total electronic rejections overall 733 4464

The most common e-dealing rejection reasons with suggested prevention methods are as follows:

Rejection reasons July 2011 Actual Average over the last six months
1 Subdivision requirements 91 79
2 Instrument incomplete 82 74
3 CT reference incorrect 76 54
4 Consents required 49 37
5 Parties incorrect 48 37
6 Instrument Code incorrect 40 30
7 Caveat requirements 39 52
8 Instrument not lodged 4 2

Rejection reason Suggested rejection prevention methods

1

Certificate of Title (CT) reference incorrect


Enter the correct title reference in instruments and check thoroughly.

Image Only instruments
Ensure that the title references in the attached image instrument match title references in the Create dealing screen.

Subdivisions
All instruments lodged prior to OCT should refer to the existing/head title reference. The OCT should show the existing/head title reference and all new title references that will issue as a result of the subdivision. After registration of the OCT, the existing/head title will no longer exist and therefore all instruments following the OCT should not refer to the head titles.

New Leases
Show the fee simple title reference and the new title, i.e. Computer Interest Register (CIR) reference.

Surrender of Lease and Variation of Lease
Show the fee simple title reference and the leasehold (CIR) reference.

NOTE: All cross lease titles are affected by each lease so all title references need to be included.

2

Instrument incomplete


Always preview the instrument to ensure that all relevant pages are included and legible and irrelevant pages are excluded.

3

Subdivision requirements


Subdivision requirements
Before a subdivision plan is lodged, it is important that the Solicitor discusses any issues with the Surveyor to make sure the plan lodged will support the documents that are intended to be registered.

If there are any unresolved issues regarding existing easements at the time the Surveyor is drawing the plan, then it is suggested that the Surveyor show all existing easements. The easements may then be surrendered at any time.

Order of registration for subdivisions
When registering transfers to bring new lots or part lots into common ownership, ensure that such transfers are placed prior to the OCT in the new title dealing, and that such transfers show the existing title reference. The new title reference does not exist until after the OCT (which issues the new titles).

Instruments under Section 223 and 224(c) Resource Management Act should be placed before the OCT.

When lots on the new plan are to be vested, any discharge of mortgage required for that purpose should be placed ahead of the OCT and should show the existing title reference.

When easements affect a new lot on a plan, wherever possible place the easement instrument after the OCT.

NOTE: It is not necessary to lodge separate OCT's when titles are to be issued in different proprietorships. One OCT can be used to order multiple new titles even if proprietorship is different.

4

Caveat requirements


Caveatable interest
Ensure that the interest claimed is a caveatable interest – refer to Section 137 Land Transfer Act 1952.
Show how the land, estate or interest claimed is derived from the registered proprietor.
If the interest being claimed is an agreement to mortgage, ensure that the date of the agreement is stated.

5

Instrument not lodged


Ensure that all the instruments required for the type of dealing you are completing have been lodged.

Example of instrument not being lodged
Partial Discharge of Mortgage – Lodge a PDM as to Part Lot 10 DP 123456 (CT…….) before the boundary adjustment transfer and OCT.

Boundary Adjustment Transfer - Lodge a transfer of Part Lot 10 DP 123456 from ABC's Orchard Limited (CT…….) to Moss Robin Noddy and Kara Agnes Noddy before the OCT – this is to ensure that the new lot is in common ownership.

6

Parties incorrect


EI instrument - show the correct grantor in the grantor panel.
T instrument - check that the correct transferor displays. If your instrument follows a prior dealing or instrument that changes ownership. Use “Change due to Pending Dealing” to edit the transferor (if necessary).

7

Consents required


Consents
Search the current title immediately before submitting any instrument that requires mortgagee, encumbrancee or caveator consents, eg easement, land covenant, so that any necessary consents can be obtained and included in the dealing.

8

Instrument codes


As the code entered determines the instrument type and memorial template, it is essential that the correct code is used.

General information

Attached images

Only pages relevant to registration should be attached as an image. A&I forms, bank instructions, private information, e.g. Driver's Licence and bank account details, should not be included.

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