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Building Act 2004

Building - Building work—Project information memoranda and building consents - Limitations and restrictions on building consents: Construction of building on 2 or more allotments

81: Mortgage or charge has priority over registered instrument

You could also call this:

“Older loans or debts on land are more important than newer ones when building across different pieces of land.”

This part of the law talks about what happens when there’s more than one mortgage or charge on a piece of land. A mortgage or charge is when someone lends you money and uses your land as security.

If you have a mortgage on your land and then get another one because of section 80, the first mortgage is still more important. It comes first if there’s ever a problem.

When a new mortgage is added to your land record because of section 80, it becomes more important than any mortgages that are added after it. This means the order in which mortgages are registered matters.

Remember, the most recent mortgage isn’t always the most important one. The law decides which one comes first based on when it was registered and how it was added to your land record.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM306829.

Topics:
Housing and property > Buying and selling homes
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80: Records of title for 2 or more allotments subject to registered instrument, or

“When multiple pieces of land have special rules, those rules apply to all the land together.”

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82: Registrar-General of Land may require preparation of plan, or

“The land office person can ask for a special map to be made if they need to combine different pieces of land.”

Part 2 Building
Building work—Project information memoranda and building consents: Limitations and restrictions on building consents: Construction of building on 2 or more allotments

81Mortgage or charge has priority over registered instrument

  1. This section applies if—

  2. the registered instrument referred to in section 80(2) is a mortgage or charge; and
    1. any of the land to which that mortgage or charge is extended is already subject to a registered mortgage or charge.

      1. The registered mortgage or charge has priority over any mortgage or charge extended over land under section 80(2).

      2. If a registered mortgage or charge is extended over the land comprised in a record of title by section 80, it has priority over any mortgage or charge against the land that is registered after the entry is recorded against the record of title to that land under that section.

      Compare
        Notes
        • Section 81 heading: amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
        • Section 81(1)(a): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
        • Section 81(1)(b): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
        • Section 81(2): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
        • Section 81(3): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).