Common compliance review issues

• A&I form or letter of authority authorises another firm to act – commonly seen in discharge and mortgage instruments
• A private individual A&I form is used for a private corporate client
• A&I form does not contain sufficient detail of the transaction being registered (e.g. CT references of the land affected omitted, transaction details not recorded in full)
• Consent to registration is omitted
• Power of attorney is omitted

Ensure:

• staff are aware that it is not sufficient to act on delegated instruction from another practitioner- see Landwrap Issue 68 July 2010. The client authority should refer to your firm, or the firm that the client authority refers to should nominate their CP for a multi-party dealing (see Landwrap Issue 70 September 2010)
• the correct A&I form is used as the confirmation statements in section 4 of the form differ between a private individual and a private or public corporate form
• A&I forms are completed in their entirety with all dates, names in full and details of documents properly recorded in accordance with Guideline I of the NZLS e-dealing Guidelines
• staff understand consent requirements – see Landwrap Issue 74 February 2011 for further guidance
• that powers of attorney and consents are retained with the A&I form

• Relying on expired photo identification
• Relying on a form of photo identification that does not comply with LINZ requirements (e.g. 18+ card, student/work identity card, bank/credit card)
• A Declaration of Identity is not obtained for clients without sufficient photo identification
• Further evidence not obtained when the landowner is transferring/mortgaging land
• Further evidence not obtained for High Risk transactions
• The name of the registered proprietor differs from the name of the client as recorded on the photo identification obtained

• Ensure staff are familiar with LINZS20002 Standard for verification of identity for registrations under the Land Transfer Act 1952
• Provide evidence/explanation where;
  • the landowner does not have an acceptable proof of identity, that being a declaration of identity
  • the landowner is not previously known to the firm
  • the transaction is designated as a high risk transaction
  • the solicitor is relying on a witness outside their firm (delegated witness)
• Discrepancies in client names should be formally recorded by having the client give a statutory declaration. The declaration should account for the discrepancy and confirm that the client as named on the title and in the photo ID is one and the same person. Where relevant, corroborating evidence (e.g. certificate of marriage or dissolution of marriage, name change certificate) should be attached as an exhibit. The declaration should be retained with the A&I form as supporting evidence
• Note:
  Correction/change of names should be registered where appropriate (see Change of Name guidance material below)

• Institutional chargeholder's letter of authority is not sent to LINZ
• Institutional chargeholder's letter of authority, sent via email, is not accompanied by the lender's original email (e.g. ANZ instructions sent via SOLD system)
• Signature page of the authority is omitted from documentation
• A&I form for a private mortgagee is not obtained
• The practitioner relies on delegated authority from the mortgagee's practitioner without proper evidence of authority from client

• Retain a copy of the original email from the chargeholder (such as those sent via ANZ's SOLD system) together with the letter of authority,
• Ensure that letters of authority for discharges are signed or accompanied by a covering email from the chargeholder as specified above, and a full copy of the authority is sent to LINZ.
• Obtain A&I forms for private chargeholder’s in accordance with Guideline Q of NZLS e-dealing Guidelines
• Ensure the letter of authority is from the mortgagee and authorises your firm to act

• The instrument is set up incorrectly causing the mortgage to be discharged from all of the land in the head title

• Use Part of Land/Complex mode to set up the instrument – see Landwrap Issue 76 April 2011

• Authorities are not sent to LINZ
• A&I form for private caveator is not obtained
• A&I form authorises another firm to act for the caveator

• Obtain A&I forms for private chargeholder’s in accordance with Guideline Q of NZLS e-dealing Guidelines
• Ensure the authority authorises your firm to act

• A&I form is not sent to LINZ
• Transfer of an interest/share - all registered proprietors are included in the transfer instrument as transferors but authority and instruction has been obtained from only the registered proprietor transferring his/her interest
• The incorrect estate is transferred, e.g. a transfer of the fee simple is registered instead of a transfer of the leasehold interest
• Relying on a Deed of Trust as authority to remove existing trustees and appoint new trustees on the Register
• Transferee is incorrectly recorded as an Executor

• How to set up transfers severing joint tenancy – see Landwrap Issue 69 August 2010
• Checks to perform to ensure the correct title or interest (mortgage, lease, etc) is being dealt with
• Evidentiary requirements when dealing with trusts/trustees – see Landwrap Issue 72 November/December 2010
• See Landwrap Issue June 2011 for when Transfers should not be used

• A&I form is not sent to LINZ
• Transferee recorded is not a legal entity
• Transferee is recorded as an executor
• The purpose (e.g. conservation purpose, for use in connection with a road) is entered as part of the transferee name

• The transferee is a legal entity capable of holding land e.g. for corporate names such as a company or charitable trust that the name can be found on the Companies Office website
• Only the name of the proprietor is entered into the Proprietor fields – additional text, e.g. ‘as Executor’, is inappropriate
• Any additional information (such as a purpose) should be recorded in the Additional Clauses, Conditions or Intent field

• A&I form from the mortgagor is not sent to LINZ
• Institutional chargeholder's letter of authority is not sent to LINZ
• A&I form for private mortgagee is not obtained
• Incorrectly rely on the term loan agreement as authority to act (without obtaining the requisite A&I form and/or mortgagee authority)
• Practitioner relies on delegated instructions from the mortgagee's practitioner without proper evidence of authority from the client

• Obtain A&I forms for private chargeholder’s in accordance with Guideline P of NZLS e-dealing Guidelines
• Obtain proper authority and instruction from the mortgagee authorising your firm to act - see Landwrap Issue 68 July 2010, or nominate separate CPs for a multi-party mortgage (see Landwrap Issue 70 September 2010)
• Ensure the authority from the mortgagee is received and authorises your firm to act

• Appropriate evidence to support the application is not sent to LINZ (e.g. certificate of incorporation, marriage certificate)
• Corporate change of name is not accompanied by a statutory declaration as set out in Appendix 1 of Form24 of the Land Transfer Regulations 2002
• A change of name of a company is incorrectly registered when the company has amalgamated with another or others – a TSM following the amalgamation of companies should be registered

• A statutory declaration is not obtained, and/or evidence of death is not provided

• Consent of the mortgagee/encumbrancee has not been obtained contrary to the certification being made that consent has been obtained