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 2005 and the first edition of the LANDinfoNET newsletter for this year!!! 2005 is looking like an exciting year for us with the impending launch of LANDinfoMAP via our webpage www.landinfo.net.nz and the completed implementation of our new, faster computer system designed to create greater efficiencies and service.

Although 2005 has not started with the vigor of 2004, it is still clear that the property market has some life left in it. What has become apparent is that the market is only being hindered by the number of listings and not by the number of buyers. All in all the outlook is encouraging in the short term, but maybe beginning to plateau during the second quarter of this year. It will be interesting what effect the latest rise in the OCR to 6.75% will have on the property market, with even fixed interest rates now knocking on the door of 8%.

Thank you for your continued support, we look forward to delivering to you all the same accurate and timely service throughout 2005. Please have a read of our incentive scheme below and see how your firm can earn a refund from LANDinfoNET!!!

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Client Incentive Scheme

With our growing levels of technology we here at LANDinfoNET are always looking for new clients. We are also always looking to make life easier for our current clients and as such have come up with the following reward scheme for those clients who refer others to us:

If you, as a current client, directly refer a brand new client to us- Firstly that new client will receive half price agency for their first month.

Secondly, your firm as the referrer will receive a cash refund, dollar for dollar, for the same amount as the new client spends in agency during that first month.

We see this as a thank you for your loyalty and hope that the cash back scheme will help develop our relationship with you further. This offer is valid until May 31 st 2005. If you would like to know more please contact Marcus Reynolds on 0508 534 251 or at marcusr@landinfo.net.nz

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LINZ Approved Forms

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.

This include: Caveats, Easements, Mortgages, Transfers, Leases, Encumbrances, Transmissions and many others.

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.

FEATURE ARTICLE
The Importance of Consultancy

Consultants are often the greatest source of knowledge and experience that an organisation can rely upon. Especially here at LandInfoNet, where our consultants are all experienced and motivated members of our team who contribute at every level of our service. Our consultancy team is one of the most experienced in the country with more than 90 years experience between them in the land and conveyancing industry.

A large number of our existing clients already use our team for advice on matters ranging from the most basic single question over the phone, to some of New Zealand's most tricky and messy subdivisions and plan deposits. One of the main purposes of our consultancy team is to prevent a messy situation by simplifying the process for you so that in turn your own clients receive a faster, superior, hassle free service.

So what services can our consultancy team offer you?

• Easily contactable personal service
• Experience in high end and unusual dealings
• FREE telephone advice for basic questions that require no follow up
• Plan deposits
• Sub-divisional work
• Drafting of Documents
• Unusual precedents of land transfer documents
• Copies of repealed Acts that still appear on old titles
• Provide contact details of overseas witnesses.

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 any matters. Please do not hesitate to contact them with any queries that you have.

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 90 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, Evan and Dave to ensure they are free for high-end consultancy.

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LINZ Issues

Acceptance based approach affects plan deposits

From the 22 nd of November 2004 LINZ began an “acceptance” based approach to approving plans as to survey. The policy is based upon requisitioning plans only for high-risk errors and omissions on survey datasets.

This change in policy is now beginning to affect some practitioners when preparing documents for subdivisional work. Items previously requisitioned for prior to approval are now being discovered when documents are being prepared for registration. These issues may include some of the following:

This list is not exhaustive.

Although none of these items are “critical” to survey approval, they do create difficulties for the legal practitioner in terms of delays caused by seeking amendment to the plan or requiring further documents that were not intended at the outset.

We recommend solicitors obtain a copy of the plan that is to be lodged with LINZ and utilize our consultancy service so that the plan can be checked prior to lodgment for issues that may affect registration. This will also assist greatly in drafting any documents.

Lodgement of Caveats and Notices of Claim with LINZ   

Sec 47 (5) LT Act covers the presentation of Instruments for Registration in LINZ.

It should be noted that any Caveat or Notice/Claim presented for priority lodgement on the same day as any other Instrument (eg. Transfer, Mortgage), is deemed to have been presented after the Instrument.  

Sec 102 (4) LT Act requires any Variation of Mortgage, which is affected by any other Mortgage against the same estate; the consent of the same Mortgagee is required.

RATING SALE OF ABANDONED LAND SUBJECT TO A MORTGAGE

Occasionally a Local Authority will need to exercise their ability under the Local Government (Rating) Act 2002 to enforce the sale of land that has been abandoned in order to recover unpaid rates.

Recently we have had a couple of instances where our clients thought the Local Authority may be hindered from performing a rating sale by the presence of a mortgage on the title under which the mortgagee had either not been able to be contacted or had refused to do anything about their mortgage. In one case LINZ actually registered the rating sale Transfer document and left the mortgage on the title so that the new owners took the land subject to the existing mortgage.

Unlike a situation where say, a mortgagee is exercising a power of sale under their mortgage and can rely on the provisions of Section 105 Land Transfer Act 1952 to discharge subsequent mortgages, there is no similar power in any Act to rid the title of mortgages upon a rating sale.

There is, however, is some case law that is referred to in Butterworths Land Law in New Zealand by Hind McMorland & Sim that LINZ have acknowledged will be sufficient to remove mortgages that are registered on the title upon a rating sale Transfer.

The commentary appears at paragraph 8.170 and briefly, says that the Court of Appeal in The King v Mayor of Inglewood [1931] NZLR 177(CA) held that the rating charge on land is a statutory charge which, without registration, takes priority over all registered mortgages except those in favour of the Crown. Therefore, upon a rating sale Transfer being registered, existing mortgages (except to the Crown) are extinguished and the new purchaser will take title to the land free from the existing mortgage/s.

The above case dates from 1931 and was applicable to the (now repealed) Rating Powers Act 1988. The newer Local Government (Rating) Act 2002 makes the rates a charge on land pursuant to Section 59 of that Act and so the case law is applicable to the new Act too and this has been confirmed by LINZ.

It is important for a mortgagee to step in and make sure the rates are paid if the mortgagor fails to do so. The mortgagee will of course be able to recover that money because obligations for the mortgagor to pay the rates will usually be part and parcel of the terms and conditions of any standard mortgage and if the mortgagor is in breach of that obligation then the mortgagee can have recourse to the exercise of their power of sale.

Legibility

We have encountered a few problems with the legibility of the details of individuals witnessing documents. The criteria for witnessing, is that the name, occupation and address of the witness must be legible for scanning purposes. To achieve this, we find that signing in black ink is the best method, as red and green ink can appear very faint. LINZ will reject a document if any detail cannot be viewed when scanned and a good way to check if signatures are legible is to photocopy the document to see how faint they appear.

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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).

PPSR Issues

PPSR Update

In the latest MED Monthly Business Update it states, “The Registrar of Personal Property Securities (‘the Registrar') is concerned by the increasing number of Secured Parties requesting pins, ID's and passwords (“access information”) that have been lost or not properly recorded when issued”.

It also mentions that the Registrar is currently reviewing the existing process for Secured Parties requesting lost pins and passwords.  The update goes on to reiterate the importance of ensuring efficient systems are in place to store securely this information so that it can readily recovered by the secured parties themselves.

What this potentially means for you or your clients is that there is likelihood the process for requesting this type of data and the availability of it may not be so readily accessible.

We invite queries from you in regard to PPSR issues. You can contact any of our PPSR specialists:

Chrissy Lloyd PPSR Office Expert
Administration Manager
chrissyl@landinfo.net.nz
Free phone 0800 106 206

Janelle Weir General Manager/PPSR Consultant
janellew@landinfo.net.nz
Free Phone: 0800 106 206

Adele Oram PPSR Consultant
Land Transfer Search and Registration
adeleo@landinfo.net.nz
Free phone: 0508 534 251

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Companies Office Update

New Forms

Real Estate Statistics

There has been an obvious slowing in the market compared to the previous quarter and especially this time last year. Even though the median sale price of residential property in New Zealand rose from $260,000 to $265,000, the number of days taken to sell a house on average rose by 9 days from 29 days to 38. This is quite a significant jump to say the least, but can be put down to the season and need for money elsewhere. The total number of sales also took a tumble from last December to January by more than 1000, although this is largely due to the lack of listings rather than a drop in the interest of house buyers. (source: realenz.co.nz)

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

To View a table of national statistics please Click here

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A Big Thank You

Once again thank you for your continued support, we hope that you find this newsletter and the information it contains useful. We wish you all continued success throughout the year.