Introduction

We trust you will find this publication a helpful addition to your resources. For further information regarding LANDinfoNET Limited and our services, including full Land and PPSR search and registration, please visit www.landinfo.net.nz

.:: AN EXTENSION OF YOUR OFFICE ::.

Comments from the Business Development Manager

Welcome to the November issue of our newsletter. As always we hope that it provides you with useful information that will make your life easier and allow you to better enjoy the upcoming good weather.

Over the last couple of months LANDinfoNET has carried on its progressive approach to business and has introduced a new, quicker and superior computer system. As arguably New Zealand largest legal agents this system will be able to provide all the power we need to handle our growing volumes well into the future and provide our clients with a faster more efficient service.

November has provided us all with its 'summer surge' in property activity, which is encouraging after a slow October. Interest rates have been on the steady increase all year, and with the Official Cash Rate (OCR) now at 6.50% it is expected that the property market will slowly begin to plateau in the New Year. It is thought that these steady rises have been a major contributor to the slowing housing market.

2004 has been another outstanding year for LANDinfoNET with the economy staying strong and the property market maintaining its golden run. We have enjoyed having you on board this year and we look forward to maintaining our strong relationship next year. Please enjoy our November newsletter and have a safe and happy Christmas time.

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Exciting New Product- LANDinfoNET'S own LAND INFO MAP

LANDinfoNET have recently developed our own LAND INFO MAP that will be available to all of our clients via our website early in the New Year. This is a user-friendly product that can locate any title in New Zealand based on the address or owners details. Once these details are entered the map will zoom in and highlight the title and parcel of land on the map.

For those unfamiliar with spatial mapping, they can benefit your organisation in a number of ways. They are excellent for finding the basic legal information on the title you wish to search; this includes any encumbrances and easements that may exist on the title. A spatial map can also be used to show the position of a plot of land in relation to its surroundings, the area of the title or even identify the parcel of land to help the searcher identify and clarify what they are dealing with.

We are very excited about this product and see genuine benefits to all of our clients who currently use similar products. Our LAND INFO MAP has been designed to be more user-friendly, more cost effective and faster than its competition. We look forward to announcing its launch early next year.

If you have any questions about the LAND INFO MAP, or would like to trial using it now, please get in touch with Marcus Reynolds, our Business Development Manager, at marcusr@landinfo.net.nz.

See examples in the screen shots: | SCREEN SHOT 1 | SCREEN SHOT 2 | SCREEN SHOT 3 |

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Recent Staff Changes

Recently our Hamilton manager, Marian Kempster, has left us to have her first child. Marian was with LANDinfoNET for many years and brought a real sense of positivity to the office. Both Marian and her new baby girl are doing very well.

Lana McQueen has also recently left to have a child. Lana was a valued member of our consultancy staff who had a fantastic work ethic and an excellent relationship with all of the customers she dealt with. We all wish her the best of luck.

We have also had a new addition to our consultancy team in Evan Yeates. Evan's experience totals some 12 years with Land Information New Zealand. Six of those years were as a Signing Officer checking off documents and plan deposit dealings to enable the issuing of new certificates of title and to ensure that statutory requirements were complied with. In his final year Evan was a Quality Control Co-ordinator ensuring LINZ standards were met and internal staff were trained. Evan also spent time as a Landonline trainer and has been involved in the setting up, introduction and implementation of e-dealings. Evan joined LandInfoNet in September 2004 and brings an understanding of LINZ and Landonline processes that can be relied upon by conveyancers to ensure a smooth and accurate registration process.

LINZ Issues

Land Covenants in Easement Instruments

One of the traditional ways of creating land and fencing covenants in a new subdivision is by the use of a Transfer document. In the Transfer document a new allotment in a subdivision is transferred to the transferee. The transferee then covenants back with the transferor (original subdivider's land) to become subject to certain land and fencing covenants.

So in this situation the transferee becomes the grantor of the land and fencing covenants, which are in favour of the transferor (original subdivider's land) who becomes the grantee of the covenants that are in the transferor's favour.

With the introduction of the newer Easement Instrument document, increasing use is being made of this type of document to create land and fencing covenants in new subdivisions. Unfortunately we have identified two major areas of concern encountered with the use of these documents where they have been used as a direct substitute for the type of Transfer document described above:

1. Terminology appears to be one problem that is encountered. The use of the words 'grantor' and 'grantee' is in need of careful attention.
   
   Often when the covenants are inserted into an Easement Instrument they have been taken straight from a traditional Transfer precedent and it shows because the words transferor and transferee are peppered throughout the covenant clauses whereas the words that should be used are grantor and grantee because that is what is referred to in the form for the Easement Instrument, especially the operative clause.
   
   People also assume that the words Transferor/Grantor and Transferee/Grantee are interchangeable with each other but this is not necessarily so as you can see from the Transfer example at the beginning of this article.
   
   The easy rule to remember is to keep in mind who must grant the covenants (i.e. the owner of the servient tenement) and they should be referred to as the 'grantor'. The other party will of course be the person whose land gets the benefit of the covenants, and can enforce them, being the 'grantee'.
   
   If the words 'grantor' and 'grantee' are not used correctly then it could prove difficult, if not impossible, for the person who is supposed to be able to enforce the covenants to actually be able to exercise those powers. For example we have seen examples of land covenants where the grantee ends up effectively being the one who is covenanting to do certain things for the benefit of the grantor.
   
   The terms 'Transferor' and 'Transferee' are not the only ones causing difficulties at the moment because more often we are seeing extra covenants being taken straight out of an Agreement for Sale and Purchase form and placed into an Easement Instrument without amendment so the terms 'Vendor' and 'Purchaser' are showing up which of course do not make sense in the context of an Easement Instrument document.
2. The other area of concern is that LINZ do not seem to be policing the incorrect use of the above terminology in an Easement Instrument. So the covenants do tend to get registered even if the terminology is incorrect.
   
   LINZ's role in the past has been to register covenants on the title if the registration matters are satisfactory. Once the covenants are on the title they become an interest in land and they also become a notice to any purchaser that the land is subject to certain covenants but whether or not those covenants will be effective is another matter and not a registration issue for LINZ to be concerned with.
   
   Therefore, we guess that, as in the past, LINZ are leaving the aspect of whether or not the covenants are workable, up to the parties.

We are certain that developers of subdivisions would be keen for covenants to be effective once registered on the titles and not have to go back and attempt to correct them, if possible, at a later stage.

Please feel free to contact our registration consultants to assist you with any issues you may have difficulties with when drafting land and fencing covenants for use in an Easement Instrument document.

Caveats & Mortgagees- Section 145A LTA

LINZ has recently ruled that a mortgagee can apply pursuant to Section 145A to have a caveat removed from a title. Caveats have always been a problem when a mortgagee is proceeding under the power of sale provisions in a mortgage and there is a caveat on the title that will not automatically be extinguished on registration of the transfer exercising power of sale.

Our Land Transfer Consultants Roger Fielding, David Barker, Barry Green, Evan Yates and Elaine Hancock are always available for consultancy and technical advice issues on these and any other matters. Please do not hesitate to contact them with queries.

Roger 0508 534 251 LANDinfoNET Limited Hamilton rogerf@landinfo.net.nz
Barry 0800 106 206 LANDinfoNET Limited Auckland barryg@landinfo.net.nz
David 0508 534 251 LANDinfoNET Limited Hamilton davidb@landinfo.net.nz
Evan 0508 534 251 LANDinfoNET Limited Hamilton evany@landinfo.net.nz
Elaine 0508 534 251 LANDinfoNET Limited Hamilton elaineh@landinfo.net.nz

Roger, Barry, Dave, Evan and Elaine have a prior cumulative experience of working with LINZ as senior Land Registrar for over 80 years, please ensure you utilise their ongoing knowledge and resources as an "extension of your office". A team of registration clerks support Roger, Barry, Elaine, Lana, Evan and Dave to ensure they are free for high-end consultancy.

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Average time for new titles to issue and plans to approve

For your information above is the table setting out LINZ's guidelines and the average time we are experiencing currently for registration to be completed. These averages are fairly consistent throughout New Zealand.

At LANDinfoNET Limited we are continuing to look at systems to create efficiencies so you and your clients benefit. With this in mind, we publish these averages as a regular feature of our newsletter to assist you with providing information to your clients.

Please be aware we are unable to request LINZ to give priority or urgency ahead of other dealings until the expiration of LINZ's performance standard time frames (shown ABOVE).

Should you feel circumstances permit for you to request priority over other prior lodged new title documentation, please forward to us a formal letter addressed to the Processing Centre Manager of LINZ, outlining your reasons for special priority. We will submit this letter on your behalf and advise you of LINZ's intention.

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PPSR Issues

About Secured Party Groups

A secured party group must be registered in order to register a financing statement. Secured party groups are a central identity within the PPSR. A secured party creates a secured party to group to represent itself on the PPSR the first time it accesses the PPSR. From that point onwards all financing statements should be registered against that secured party group.

The way the ministry communicates with secured party groups is via email. The PPSR will not generate email for the following events:

• Deletion of pending financing statements or financing change statements at 60 days
• Reminder for expiry of financing statements
• Notice of expiry of financing statements

About Subordinations

Subordinations change the priority of registered financing statements. The principle behind both subordinations and un-subordinations is that the party with priority must access the financing statement in the PPSR and defer to the inferior financing statement.

Renewing financing statements does not automatically renew subordinations recorded on them. It is important to be vigilant of subordinations at the time of renewal and extend notice of the subordination by processing another subordination at the time of renewal.

Subordination details are announced on the financing statement. LANDinfoNET's policy ensures our PPSR Registration clerks will always check for subordinations prior to renewing financing statements. Please contact us for assistance or advice on this matter.

Searching Tips

When searching for an incorporated company that has changed its name, we suggest searching the previous company name, the new company name and the company number to ensure all results are returned. As the register is reliant upon secured parties to enter the details of a security interest onto the PPSR and maintain it, human error is inevitable. An error made when registering can result in searches being incomplete or inaccurate.

Discharged or expired financing statements remain on the system, but can only be located when searching by the financing statement registration number.

LANDinfoNET Limited now supplies
LINZ Approved Forms & Corresponding Templates

LANDinfoNET Limited has developed all forms in the Land Transfer Regulations and obtained LINZ approval for your use in drafting and registering any LINZ documentation, including consents.

In conjunction with the forms ensuring you receive every benefit from them, we have also designed matching electronic templates. The use of these templates allows you to type all necessary data directly onto the template at your PC, then simply place the corresponding approved form into your printer, and print. This process dispenses with having to use cumbersome typewriters or having to design your own template.

The forms are designed as loose leaf for both single and multi page forms to ensure compatibility with any type of printer to meet your word processing needs, and LINZ scanning requirements.

The forms and templates are available to order on our website www.landinfo.net.nz look for 'LINZ approved forms' down the left hand side of our home page.

For clarity and simplicity we have priced each form at $1.00 inclusive of GST with delivery within 48 hours. LANDinfoNET Limited clients will not be charged any shipping costs. Click here to order now. LANDinfoNET Limited clients will also automatically be emailed the accompanying template at no extra cost when a set of approved forms is requested for the first time.

We have highly experienced Land Transfer consultants who can assist with any facet of assisting you in drafting and providing registerable precedents to assist your process.

Forms & Templates Available include:

Easements and Profit à Prendre

• Application for Removal of Easements and Profit(s) à Prendre
• Easement Instrument to Grant Easement of Profit à Prendre, or Create Land Covenant
• Easement Instrument to Surrender Easement, Profit à Prendre, or Land Covenant
• Easement Variation Instrument to Vary Easement, Profit à Prendre, or Land Covenant

Caveats

• Application for Lapse of Caveat
• Caveat against bringing Land under Land Transfer Act 1952
• Caveat against Dealings with Land under Land Transfer Act 1952
• Withdrawal or Partial Withdrawal of Caveat
• Caveat giving Notice of Estate or Interest under Part XII of Land Transfer Act 1952
• Caveat forbidding issue of Ordinary Certificate of Title or Computer Register

Transfers

• Transfer Instrument

Mortgage

• Mortgage Discharge Instrument
• Mortgage Priority Instrument
• Mortgage Variation Instrument
• Mortgage Instrument (fixed sum)
• Mortgage Instrument (all obligations)

Leases

• Lease Instrument
• Lease Variation Instrument
• Lease Surrender Instrument

Encumbrance

• Encumbrance Instrument

Transmission

• Application for Transmission (survivorship)
• Application for Transmission (personal representatives)

Other

• Application for Certificate of Title on Ground of Possession (no template available)
• Application for Correction of Change of Name
• Application for Change of Name (company or incorporated society)
• Annexure Schedule
• Attestation
• Statutory Declaration of Person Executing
• Statutory Declaration of Witness
• Deposit of Survey Plan
• Annexure Schedule - Consent Form

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Real estate statistics

Since August the national median selling price for residential housing has steadily increased by 1.2% according to latest REINZ figures. However, the number of housing sales has been on the decrease, with 300 less houses being sold in September (7854 properties) compared to August (8191), which was a 4.1% drop. Compared to September 2003 this represents a 20% decrease in the volume of houses sold.

The number of days taken to sell a property has remained constant at 31 days. It has been suggested that the market will begin to plateau after the summer rush is complete and the increase in interest rates begin to take effect in March/April 2005.

To view all of 2003's statistics, please refer to our previous newsletters. These can be found on our website www.landinfo.net.nz.

Click here to view a table which depicts averages across New Zealand.

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Westpac NZ housing market

Click on the folowing links to view this invaluable information (Acrobat Reader required).

House Prices and the Exchange Rate

Housing Cost Inflation - Built on Sand?

We are grateful to have this supplied by: Westpac Institutional Bank.

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A Big Thank You

To all of you a big thank you for your continued support this year, all of us here at LANDinfoNET hope that you have a fantastic Christmas and New Years. We will be available until 4.00pm Friday the 24th December 2004 and re-open normal business hours Wednesday 5th January 2005. We look forward to seeing you in 2005.