The Transfer and Power of Sale (TPS) is an image-only instrument, which means that Landonline cannot automatically extract any of the content. The dealing will step down to LODGE for LINZ to check the LODGE instrument only.

The Mortgage is an AUTO REG instrument and therefore will not usually be checked by LINZ. When a Mortgage follows a TPS in the same dealing, the Mortgage will default the registered owner details to those currently on the title.

Landonline will not take into account any image-only instrument prior to the Mortgage in the same dealing. If the instrument prior to the Mortgage changes the ownership of the title then you will need to check the 'Change due to Pending Dealing' checkbox to delete the current registered owner names and enter the new owners from the TPS. This will be the case for most, if not all, Mortgagee sales.

Pre-validation will fail even if you make this change because the owners do not match. This is because the image-only instrument cannot update the register automatically as noted above.

LINZ is not required to check any AUTO REG instrument as it is assumed that you have changed any necessary fields prior to submitting the dealing. Once the title is updated with the new owners then Landonline will check the AUTO REG instrument at the time the dealing is registered. Subsequent instruments will be registered if the names in the subsequent Mortgage (or other instruments) match the title at that point.

Correct set-up of a Mortgage following a TPS:

  1. Check 'Change due to Pending Dealing'
  2. Delete default registered owners
  3. Add a blank line for each new Registered Owner and enter details in appropriate fields (Given Name[s] and Family Name or Corporate Name)
  4. Add Mortgagee Name to the blank row
  5. Enter relevant Mortgage details
  6. Pre-validate the instrument:

 

Correct set-up of a Mortgage following a TPS - fig 1

Note:

Pre-validation should fail for the reason below. This is a valid failure because the image only instrument has not updated the registered owners. You should continue and submit your dealing for registration even if it has failed pre-validation. LINZ will update the register with the new owners entered in the TPS.

 

Correct set-up of a Mortgage following a TPS - fig 2

What are the implications of not updating the Mortgagor names?

If you do not change the Mortgagor details to match the new owner, your dealing/instrument will be Rejected or Requisitioned.