If the outcome of a transfer is that one remaining owner will own all the land in the same capacity, that owner can request that their shares be amalgamated. This is done by adding a recital in the “Clauses, Conditions and Intent” panel of the transfer instrument.
In the absence of such a recital we cannot assume the shares are to be amalgamated as the transferee may have valid reasons for wanting each share to be recorded separately (e.g. for family trust or estate planning purposes).
If the recital is accidentally omitted from the transfer instrument the parties will need to lodge a further transfer to achieve the intended result. LINZ will not alter the register to correct the error or omission.
Common scenarios where remaining owners request to amalgamate shares:
|
Current ownership |
Transfer with request to amalgamate shares |
Resulting ownership |
|---|---|---|
|
A & B jointly |
A transfers their share to B |
B |
|
A & B in equal shares |
A transfers their share to B |
B |
|
A, B & C jointly |
A transfers their share to B & C |
B & C jointly |
Transfers with requests to create a joint tenancy are not appropriate
It is not appropriate for a transfer instrument to include a request that the owners be recorded as joint tenants in situations where a joint tenancy has not been created at law. For more information see Transfer creating a joint tenancy.