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Land Transfer Act 2017

Dealings in estates and interests in land - Mortgages

103: Transfer of mortgaged land by mortgagee sale

You could also call this:

"Buying land from a mortgagee: what you need to know"

Illustration for Land Transfer Act 2017

You buy land from a mortgagee who is selling it. The land is now yours when the transfer is registered. You get the land without having to worry about the old mortgage. You also do not have to worry about other mortgages or interests that are not more important than the old mortgage or that do not affect the mortgagee. The transfer cannot happen if there is a submortgage on the land. If you want to compare, you can look at s 105 for more information.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731246.

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Topics:
Housing and property > Buying and selling homesHousing and property > Land use
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"Changing the Order of Mortgages on a Property Requires a Special Document"

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"What happens when a mortgage is paid off and removed from a property"

Part 3Dealings in estates and interests in land
Mortgages

103Transfer of mortgaged land by mortgagee sale

  1. The estate or interest of a mortgagor in land vests in the purchaser of the land on registration of a transfer instrument executed by a mortgagee for the purpose of exercising a power of sale under a mortgage.

  2. The estate or interest transferred vests in the purchaser freed of and discharged from—

  3. liability under the mortgage; and
    1. any other mortgage or interest that does not have priority over the mortgage or that is not binding on the mortgagee.

      1. The transfer instrument cannot be registered if the mortgage is subject to a submortgage.

      Compare