Land Transfer Act 2017

Preliminary provisions

6: Meaning of fraud

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"What 'fraud' means when buying or selling land"

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When you are dealing with the Land Transfer Act, fraud has a specific meaning. It means when the registered owner or their agent does something dishonest to get a registered estate or interest in land. This dishonest conduct must be against the owner of the land or someone with an unregistered interest in the land. You need to know that for this to be considered fraud, the registered owner or their agent must have known about the unregistered interest and wanted to defeat it when they registered the estate or interest. The Land Transfer Act also says that fraud can mean something different in certain situations, like in subpart 3 of Part 2. In those cases, fraud means dishonest conduct by anyone. The Act also says that the equitable doctrine of constructive notice does not apply when deciding if conduct is fraudulent. This means that you cannot assume someone knew something just because they should have known it. The Land Transfer Act has specific rules about what constitutes fraud, and you should understand these rules when dealing with land ownership.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731109.

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Part 1Preliminary provisions

6Meaning of fraud

  1. For the purpose of this Act, other than subpart 3 of Part 2, fraud means forgery or other dishonest conduct by the registered owner or the registered owner's agent in acquiring a registered estate or interest in land.

  2. For the purposes of subsection (1), the fraud must be against—

  3. the registered owner of an estate or interest in land; or
    1. the owner of an unregistered interest, if the registered owner or registered owner's agent,—
      1. in acquiring the estate or interest had actual knowledge of, or was wilfully blind to, the existence of the unregistered interest; and
        1. intended at the time of registration of the estate or interest that the registration would defeat the unregistered interest.
        2. For the purpose of subpart 3 of Part 2, fraud means forgery or other dishonest conduct by any person.

        3. The equitable doctrine of constructive notice does not apply for the purposes of deciding whether conduct is fraudulent.