Government welcomes review of Land Transfer Act

Justice Minister Simon Power and Land Information Minister Maurice Williamson have welcomed the Law Commission’s report on the review of the Land Transfer Act 1952, which includes a draft bill.

The report, entitled ‘A New Land Transfer Act’, was tabled in Parliament today.

It follows a comprehensive review of the Land Transfer Act, which is nearly 60 years old. Some provisions date back to 1885 and complex amendments have been made over the years.

The Land Transfer Act is New Zealand's primary land-holding statute. It provides a system for the registration and transfer of land interests, and nearly all land is under this system.

The report recommends replacing the Act with a modern, more accessible Act that will simplify and consolidate the legislation. The new Act would reflect that the system of land registration is now almost exclusively electronic and will make some technical, operational changes.

Mr Williamson says the review is overdue. “Modernisation will clarify the law and contribute to the certainty of property rights which is crucial for economic benefits."

Mr Power says the system has to be robust. “It's vital that the system provides security of ownership for people, while ensuring they can efficiently and safely transfer their property to others.”

Though the fundamental principles of the land transfer system will remain unchanged, some improvements are recommended, including:

• Giving the court limited discretion, in the event of fraud or other illegality, to restore a landowner’s registered title in rare cases where such intervention is warranted to avoid a manifestly unjust result.
• Reinforcing the obligations of lenders to properly verify landowner identity for mortgage purposes.
• Clarifying the scope of the Registrar-General of Land’s powers of correction.
• Providing new mechanisms for noting land covenants where the benefit attaches to a person rather than other land.

The Ministers are considering the Law Commission’s 25 recommendations and expect to take a paper to Cabinet within four months.

ENDS

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