You are viewing guidance that refers to, or is for Legacy Landonline.

Dealings affecting leasehold estates

When a dealing is created affecting a leasehold estate, Message 28432 displays at the point the Computer Interest Register (CIR) reference(s) for that leasehold estate is entered in the Enter Titles screen, and that screen is saved and closed.

 
Enter Titles - Message 28432

 

This is a warning message only and displays regardless of the instrument type(s) in the dealing.

The purpose of the message is to prevent dealings being registered against expired leasehold estates. If a leasehold estate has expired, you should not be completing any transactions against the lease or leasehold title. Generally, the only transaction allowed against an expired lease is a lease in renewal or in substitution.

The message gives the conveyancer the opportunity to check the term of the lease to ensure the term is still current and that you are not incorrectly transacting against an expired lease or leasehold title.

The message will display again when the dealing is submitted.

Note:

  • It is still possible to register against an expired estate. The message is a warning only and does not stop registration. The onus is on the conveyancer to not proceed with the dealing if the leasehold estate has expired.
  • Life Estate Titles do not trigger this message, but do automatically cause a dealing to step down to Lodge for checking by LINZ.

When creating the dealing, the fee simple title should only be included when the lease instrument is being affected eg variation of lease, surrender of lease. If you are affecting the leasehold estate only (eg mortgaging the leasehold estate), the Computer Interest Register should be the only title reference affected by the dealing.