The 2009 High Court decision in Gill Construction Company Limited v Morgan and Morgan changed how LINZ dealt with the removal of charging orders under section 105 of the Land Transfer Act 1952. These changes also apply to the Land Transfer Act 2017.
The decision of Gill Construction Company Limited v Morgan and Morgan (HC WN CIV-2009-406-100) confirmed that a charging order is an interest in land for the purposes of the Land Transfer Act 1952.
The effect of the decision was that LINZ began to automatically remove a charging order under section 105 of the Act on registration of a transfer in exercise of a power of sale under a prior mortgage.
Further details regarding the decision are available at LINZR20301: Mortgagee sale transfers and removal of charging orders.
Section 103 of the Land Transfer Act 2017 has the same effect as section 105 of the 1952 Act. Following the commencement of the 2017 Act, charging orders will continue to be removed on registration of a transfer in exercise of a power of sale under a prior mortgage.