This newsletter explains some significant changes the Government is phasing in that affect the process for creation and registration of documents with land interests (Conveyancing Documents).

A new system allowing electronic preparation and registration of Conveyancing Documents such as discharges of mortgage, transfers and mortgages has been put in place. The new system is called "e-dealing" and is carried out in the Land Information New Zealand (LINZ) web-based Landonline system. The system is starting with the discharges and partial discharges of mortgage and other charges, transfers, and mortgages. More documents will be added to the list of compulsory e-dealing documentation in 2008.

Under the e-dealing system, clients will no longer sign traditional documentation such as transfers. Instead, an “Authority and Instruction Form” (A&I) is required whereby lawyers are instructed and authorised by clients to create and electronically register the necessary documents in Landonline. Lawyers will log onto Landonline to create and process the required electronic documents. Once the transaction is completed to a certain point the electronic documents are submitted by the lawyer concerned in Landonline and the land title register is automatically and immediately updated.

Lawyers’ actions will directly affect the computer land register. Although the Landonline system has some built-in accuracy checks, there is no manual check by LINZ staff as there is with the traditional system.

The A&I forms involve lawyers in a more rigorous process in relation to identification of signatories to help protect the land register from fraudulent registration. A copy of a photo ID for each signatory must be attached to an A&I and each signatory must have their identity verified by an approved person.

The solicitors and partners of Simpson Grierson will be personally involved in preparation of A&I forms, electronic creation and registration of conveyancing documentation and in submitting the electronic documents for registration.

The e-dealing system alters many of the aspects of the traditional conveyancing process and imposes extra duties and responsibilities on lawyers. As a result of these changes, there will be additional attendances by lawyers in conveyancing transactions. The additional attendances are set out in the table on the following page.

Key benefits of the new system for clients are the instantaneous registration after settlement and  educed registration fees. The current registration fees for electronic documents are $21 per document compared to $75 ($50 for registration and $25 for agency) per document for paper documents.

Should you require any additional information or advice on the changes, please do not hesitate to contact us directly.

This newsletter is produced by Simpson Grierson. It is intended to provide general information in summary form. The contents do not constitute legal advice and should not be relied on as such. Specialist legal advice should be sought in particular matters.