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Land Transfer Act 2017

Dealings in estates and interests in land - Caveats

141: Caveat against dealings not to prevent transfer by mortgagee under power of sale

You could also call this:

"A mortgagee can still sell land even if someone has put a caveat on it."

Illustration for Land Transfer Act 2017

You can still transfer land even if someone has put a caveat on it. This can happen if a mortgagee is selling the land to get their money back. The caveat will not stop the sale if it was lodged after the mortgage was registered. You need to meet some conditions for this to happen. The caveat must relate to the same land as the mortgage. It must also be based on an unregistered mortgage or an agreement to mortgage that was made after the registered mortgage. If the land is transferred, the caveat will lapse. This means it will no longer be in effect. The person buying the land will get it free from any interests protected by the caveat. The Registrar will note that the caveat has lapsed on the record of title. The Property Law Act 2007 and the court orders are important in this process. They help decide how the land can be transferred. The Registrar follows these rules when dealing with caveats and mortgages.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731319.

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Part 3Dealings in estates and interests in land
Caveats

141Caveat against dealings not to prevent transfer by mortgagee under power of sale

  1. Despite section 140, the Registrar may register an instrument or make an entry in the register to transfer an estate or interest in land if—

  2. the transfer results from—
    1. the exercise of a power of sale under a registered mortgage over the estate or interest; or
      1. the purchase by a vendor mortgagee under section 196 of the Property Law Act 2007 on the sale by the Registrar of the court under a power of sale in a registered mortgage; or
        1. the purchase by a mortgagee under a power of sale in a registered mortgage in accordance with an order made by the court under section 200(3)(d) of the Property Law Act 2007; and
        2. the caveat against dealings was lodged after registration of the registered mortgage; and
          1. the estate or interest protected by the caveat—
            1. relates to the same estate or interest to which the registered mortgage relates; and
              1. arises under an unregistered mortgage or an agreement to mortgage dated later than the date of registration of the registered mortgage.

              2. On registration of a transfer under subsection (1),—

              3. the caveat against dealings lapses; and
                1. the estate or interest of the mortgagor vests in the purchaser free from the estate or interest protected by the caveat.

                  1. The Registrar must note the lapsing of the caveat on the record of title.

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