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Land Transfer Act 2017

Land title and registration - Compensation - Grounds for compensation

60: Compensation for loss or damage occurring after search and before registration

You could also call this:

"Getting paid back for losses after a property search but before it's yours"

Illustration for Land Transfer Act 2017

You can get compensation if you suffer loss or damage after searching a property's records and before the property is registered in your name. The search is done during a 5 working day period before the property is settled. You must have obtained a search copy of the property's records during this time. You can claim compensation from the Crown if the search copy did not show any other registrations or documents that were lodged before a certain time. This time is either 20 working days after the property is settled or when the property is registered in your name. You can ask the court to extend the 20 working day period if it was not your fault that the registration took longer. You can take your claim to court if you think you are eligible for compensation. The court will decide if you should get compensation. You can find more information by looking at s 172A.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731192.

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59: Compensation for loss of estate or interest in land, or

"Getting paid back if you lose your land or property rights"

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Part 2Land title and registration
Compensation: Grounds for compensation

60Compensation for loss or damage occurring after search and before registration

  1. In this section,—

    first period, in relation to a transaction, means the period of 5 working days commencing on the fourth working day preceding the date on which the transaction is settled

      purchase money includes the amount to be advanced by a mortgagee in consideration for the grant of a mortgage

        search copy means a search copy of a record of title issued for the purposes of this section

          second period, in relation to a transaction, means the period of 20 working days commencing on the day after the date on which the transaction is settled

            transaction means an agreement or arrangement under which a party (the purchaser) is to acquire or has acquired from the other party (the vendor), whether for valuable consideration or not, an estate or interest in land that is subject to this Act.

            1. For the purposes of this section, a transaction is settled when—

            2. the purchaser provides the purchase money to the vendor either in full or to the extent necessary to entitle the purchaser to require the vendor to do whatever the vendor is required to do to enable the purchaser to become registered as owner of the estate or interest to which the transaction relates; or
              1. the parties otherwise agree.

                1. Subsection (4) applies to a purchaser who,—

                2. during the first period, obtains a search copy of the record of title for the land to which the transaction relates; and
                  1. suffers loss or damage because of the registration or lodging under this Act of an instrument or any other document relating to that land.

                    1. A purchaser may bring a proceeding in the court against the Crown for compensation if—

                    2. the search copy of the record of title does not disclose the registration or lodgement of the instrument or document; and
                      1. the instrument or document was registered or lodged before the earlier of the following:
                        1. the expiry of the second period:
                          1. the registration of the instruments and documents required to give effect to the transaction.

                          2. The court may, on application by the purchaser, extend the second period if the court is satisfied that failure to register the instruments and documents within the second period was not due to the fault of the purchaser or the purchaser's practitioner or agent.

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