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Frequently asked questions - Landonline Stage Two (conveyancing)
Electronic Dealings
Do both the vendor's and purchaser's solicitors have to be on their computers at the same time?
No. On settlement the vendor's solicitor (or authorised support staff) will 'Release' the instruments across to the purchaser's solicitor. The prior undertaking will state that the vendor will release analogous to the undertaking to forward documents in a fax settlement scenario.
The NZLS Guidelines require that the release occurs as soon as possible following settlement and must be on the same business day. Once the instruments are released into the control of the purchaser they are then free to submit at their leisure. Obviously this should occur as soon as possible.
Can a withdrawal of caveat as well as a discharge of mortgage be done electronically?
Yes. Virtually all withdrawals, releases and discharges (including partial discharges) or any combination can be registered electronically.
Can non-bank mortgages be carried out as an e-dealing?
e-dealing caters for the usual aspects of a mortgage such as principal amount, repayment amounts and interest rates, etc. It does not allow for specific one-off clauses. If such clauses cannot be recorded in other documentation, the mortgage will need to be in paper form. The ADLS memorandum number may be nominated for a private mortgage.
Is there an additional fee for multi-title transactions?
The system allows as many titles affected to be included in the e-dealing. There is no additional title fee.
Can I lodge my transfer electronically and lodge other mortgages as paper transactions?
Yes. It is also possible to queue an e-dealing immediately behind a paper dealing. This will allow the e-dealing to automatically register as soon as the prior paper dealing is registered.
How long should it take to prepare the document in the electronic environment, as opposed to the paper environment?
That will largely depend upon the competency level of the particular staff member. As much of the information automatically populates the instrument from the database, it should be quicker than the paper environment.
How will one know who's using it and who isn't?
A full list of registered users can be accessed directly from the system and a search can also be made and a list is also available on the Landonline website.
The NZLS Guidelines suggest that firms on each side of a transaction indicate as early as possible if the transaction is likely to be electronic and to provide the full user names.
Does a purchaser have to forward a hard copy of a transfer for the vendor's solicitor's file?
No. There is no paper transfer. A search of the details of the electronic transfer can be obtained.
Once a dealing is set up, can you change the details so others can access it for certification etc?
Yes. You can change the Conveyancing Professional nominated to certify and sign.
Is it possible to go to vendor's solicitor's office and each access through their computer to complete the transaction?
No, because your digital certificate is not on the other solicitor's computer. You could take your own laptop with your digital certificate but that would be unusual.
What happens if you commence electronic dealing and then the mortgage requires additional clauses and you get the instructions three days before settlement?
The transaction would then become a paper-based transaction.
If the mortgage is being discharged over two titles only one of which is being sold (transferred), can you register the full discharge over both CTs within the electronic system?
Yes.
Can you change a certification part way through a transaction/document preparation?
Any change can be made before submitting.
Can you cancel a transaction once you are part way through it? (eg. a last minute second mortgage is needed so cannot be done electronically)
Yes.
Are subdivisions outside this system? (eg. new titles and easements)
Yes, for the time being at least.
Does the system allow for just a D&M or does it need a D&T&M all together?
One transfer and/or one mortgage and any number of discharges.
How do you know there is anything in the process of registration? Will it show up on a Guaranteed Search?
If a paper dealing has been lodged it will show as part of the search as a pending dealing. Also if anyone commences an e-dealing on the same title a warning will appear.
What about disbursement charges?
They are not dealt with in the system, but it is suggested that they are included in the settlement statement. Refer to the NZLS Guidelines.
Is it possible to have Multiple Primary Contacts per e-dealing?
No. But any Primary Contact in the firm can access the dealing, if they have been allocated those privileges by the firm's System Manager.
Is acting both sides - acceptable?
The same ethical considerations apply as in the paper environment, such as conflict of interest.
Can a pending manual dealing eg. Transmission be linked to an electronic DTM dealing?
The e-dealing can be 'queued' behind the manual dealing such as a transmission.
Is a transmission Fencing Covenant, the only covenant that can be registered electronically?
Yes, by ticking the check box on the transfer screen.
Can a limitation of Liability Clause for Trustee in a mortgage be registered electronically?
Not by e-dealing - it shouldn't be in the mortgage anyhow, put it in the loan agreement.
Is there still a need for a guaranteed search?
A guaranteed search should still be obtained. While the time window between settlement and registration is greatly reduced to what theoretically could be a matter of minutes, it is still possible that someone else could either lodge an urgent caveat or submit another e-dealing.
When you incorporate a company electronically, you can choose the constitution. Can the mortgage memorandum for e-dealings be selected?
You must insert the memorandum number. If it does not match with a memorandum number registered by that mortgagee a message will display alerting you to check that it is the correct number.
What about Credit Contracts Act disclosure?
Same as now. The loan agreement and memorandum will still be in paper form to effect disclosure.
Do Powers of Attorney need to be registered?
Only if they are required for a paper dealing, otherwise hold on file.
What about timing if the client dies before settlement - is it the timing of the client Authority and Instruction?
Yes. It would be the same as if a transfer had been signed and the client died before settlement.
Hours of accessibility. Landonline is available from 7am to 7pm each business day. Why can't we access title searches 24 hours, as with the Companies database?
Searching and preparation work can be carried out between 7am and 7pm. The remainder of the time is required for system maintenance and uploading of data. The hours for effecting registration are the same as for paper dealings (9am to 4pm). These hours may be revised in the future.
Back to Facts you should know about e-dealing
Last modified 5 October 2006
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