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

Well so far 2005 has not let up on the property front and it seems that everyone has remained hectic, especially in the Waikato and Bay of Plenty areas. However, looking at the real estate statistics (as shown towards the end of this newsletter) it seems that the traditional winter slow down has begun, allowing some relief before everything becomes crazy around October. Although volumes of sales are down on previous years, there appears to be no predicted bubble-bursting happening over the next few months. I just hope I haven’t initiated Murphy’s Law with these comments…

Please remember that our consultants are available for everyone to contact if they have an unusual dealing or tricky question. Also please remember that simple phone queries incur no cost and are part of the superior service that LANDinfoNET provides. We have 5 consultants with over 90 years experience who love to be challenged by your most uncommon dealings and crazy questions. I invite you all to utilise this service to not just save you time, but to add value to the service that you provide your own clients.

Enjoy the ‘quiet period’ over winter and thank you for your continued support.

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WE NOW SEARCH UNTIL 7PM WEKDAYS

As part of our ongoing commitment to provide the best legal agency services available in New Zealand, we here at LANDinfoNET have introduced a new service whereby
WE WILL COMPLETE SEARCHES UNTIL 7PM ON WEEKDAYS- AT NO EXTRA COST.

We understand that our clients do not work an 8am-5pm day so have adapted our service to meet these requirements and make your lives simpler. We hope that we are able to free up some of your time and ensure that your own clients receive the most superior service possible.

Enjoy using this extra service and using LANDinfoNET as an extension to your office.

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FEATURE ARTICLE
The Mandatory E-Dealing Myth

Currently E-Dealing is one of those issues where you can’t turn in any direction without hearing about it. So firstly apologies that this article continues that trend, please don’t hold it against us.

In this article I would like to focus on when E-Dealing will become mandatory for New Zealand practitioners. Much of the recent talk is about E-Dealing becoming compulsory in the near future, when in fact this is quite far from the practical reality. Recent comments from Brendan Boyle, Chief Executive of LINZ stated that at this stage “ no decisions have yet been made about making e-dealing compulsory” , shedding doubt on what we have been led to believe at recent seminars.

Why have no decisions been made on E-Dealing being compulsory? Currently under E-Dealing it is only possible to fulfill the requirements for a simple discharge & transfer of a mortgage. However, there are a number of tasks that are still unavailable via online registration such as setting up easements, transmissions and caveats to name a few.

Logic and sense would suggest that until all tasks can be done electronically, such a system shouldn’t be made mandatory. This is because doing so will require solicitors to operate a paper-based system for some tasks in parallel with the online process for others, both on the same dealing.

In short, having to operate two distinct processes for the same dealing will create extra work, complications and cost for the parties involved and negate any efficiencies of operating online. This would also increase the risk of making an error on the irreversible system.

So how far away is E-Dealing from being able to handle all the required forms of registration? Suggested timeframes range from 4 to 5 years time. You must then add on the time for practitioners to learn and adjust to the system and you end up with a date approximately 6 years from now when E-Dealing may become compulsory, if E-Dealing is made compulsory at all.

Finally, how does LANDinfoNET fit into the picture? We now have an in-house staff member with a practicing certificate who is able to obtain an E-Dealing license. We aim to provide our clients with the same thorough checking service that we currently do and are working on how we can fit this into the E-Dealing environment. Our role would be to not just provide an extra checking service for irreversible E-Dealing registrations, but we would create an extra layer of security in the process and take on much of the responsibility that E-Dealing places solely on practitioners. We would in no case be dealing with settlements, but would focus on the solicitor-to-solicitor dealings. Our role will involve using our expertise to reduce risk and add peace of mind for our clients.

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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.

FOR A FREE SAMPLE OF THESE FORMS PLEASE CONTACT MARCUS REYNOLDS AT marcusr@landinfo.net.nz

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LINZ Issues

Searches and Missing Documents at LINZ

Occasionally you may encounter a situation whereby an easement document is not available for searching as the document has been misfiled at LINZ and therefore the image could not be scanned. You may be under pressure from a purchaser to make a copy of this document available. The memorials on the title search will also prove unhelpful as LINZ no longer include a description of the servient land for appurtenant easements and appurtenant land for servient easements. The rights and powers, terms and conditions also remain a mystery.

To resolve these difficulties a historical title search will quite often describe the easement more fully - setting out both the servient and dominant lands and this can be quite useful used in conjunction with the memorandum of schedule on the plan. It may be possible to surrender the easement and recreate it. However, if it is a 'conditional' easement then the Council are unlikely to consent to it being surrendered, as they are technically unable to re-impose the condition when the easement is recreated.

A solution to this seemingly impossible situation is to vary the document to restate the rights and powers in relation to the easement and that variation document could also set out a schedule of the servient and dominant lands for clarification.

Executions by an overseas company   

In recent months LANDinfoNET has noticed an increase in the number of inquiries relating to the execution of documents by overseas companies. With this in mind we have set out below the acceptable forms of execution.

Execution by an attorney

An execution by attorneys is acceptable but the document must be witnessed either in accordance with Section 166 Land Transfer Regulations 2002 or the Trans Tasman Mutual Recognition Act 1997 if executed outside New Zealand.

• The original power of attorney should contain a declaration under Section 343 Companies Act 1993 – see following note

Power of Attorney by an Overseas Company and Section 343 Companies Act 1993

• When lodging a new power of attorney where the donor is an overseas company the document needs to be accompanied by a declaration by a director of that company under Section 343(2) Companies Act 1993 certifying that:

1. The company is incorporated under the name stated in accordance with the law of the country in which it is so incorporated and

2. The instrument has been executed and the powers being conferred are authorised under the constitution of the company or under the Act or instrument under which the company is incorporated.

Common Seal

• Execution by common seal is acceptable – see Section 16 Land Transfer Regulations 2002.

Signatories

• Execution by director or other person authorised to act for the company is acceptable but the document must be witnessed either in accordance with Section 166 Land Transfer Regulations 2002 or the Trans Tasman Mutual Recognition Act 1997 if executed outside New Zealand.

Must be accompanied by a letter by an authorised person (e.g. the solicitor acting for the company) confirming the document has been executed in accordance with the laws in which the company has been incorporated, it is recommended that a copy of the statute authorising the form of execution accompany the letter.

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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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

Retrieving Lost Pins & Passwords

From the 1st of April 2005, all requests for lost Secured Party ID's and passwords and Financing statements pins will take 3 working days to be processed by the ministry.

In addition to this, the ministry will no longer release these pins and passwords directly to a registering party that is not the secured party. This means it is now more important than ever to have adequate internal systems in place to store pins and passwords. LANDinfoNET has proven, efficient systems for storing, maintaining and retrieving this important PPSR information , contact any of our specialists for more information.

Search Tip

Debtor name searching is an "AND" search. The more criteria you enter, the narrower your search becomes. This means ALL debtor criteria must match for a record to be returned. Using more than 1 search criteria will refine your search but may not return all relevant financing statements. For example, searching on the debtor name XYZ Ltd with the incorporation number 56789 will not return financing statements where a secured party has entered 45678 as the incorporation number.

Searching by Motor Vehicle Serial Number is an "OR" search. The more criteria you enter, the wider your search becomes. For example, searching on the VIN number and the Registration Number, if ANY of the criteria is a match, the record is returned, whether or not the remaining criteria is a match or not.

Securities Against Chattels

When obtaining a Purchasers Search we would recommend that a PPSR Search of the Registered Proprietors be undertaken also. This will ensure that none of the chattels (eg: dishwasher, oven, carpets, drapes etc) that are to remain in the property are on Hire Purchase or used a security for loans etc.

If there are security interests registered over the chattels we would recommend that you require these to be released as part of settlement. This will ensure that your client doesn't have any of the goods repossessed due to any default in payment by the registered proprietor.

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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Real Estate Statistics

The residential real estate market has remained steady over the last 3 months throughout much of New Zealand. According to Realenz.co.nz the median selling price of residential property has been on the increase over the last 4 months, going from $272,000 in April to $284,500 in June. It is thought that July will be comparable to June in terms of prices.

In terms of the number of residential properties sold, this tells a different story. The total sales in June were 8025, which is 2400 sales (or 23%) less than the month of March and 1200 sales (or 13%) less than in May. Having said this, the number of days taken to sell a property has remained at approximately 30 days all year. Another point to note is that this reduction in sales is in keeping with trends from the last 2 years where property sales decline over the winter months.

What these statistics highlight are a series of issues. Firstly, interest rates are having little effect on the housing market and in fact the housing market is being driven by non-tangible elements. An example of this is the baby boomers making safe investments for their retirement by buying property. Secondly, the current decline may be seasonal combined by a lack of listings, thus reducing purchasers’ options. These factors keep the prices high and the number of days to sell low, whilst the number of properties sold decreases.

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.

Feel free to phone our call free number 0508 534 251 and ask
for Marcus Reynolds for further information.