Caveat preparation changes

As a result of the 3.21 Landonline release some caveats based on Agreements to Mortgage and Agreements for Sale and Purchase will become auto-registerable.

After Monday 25 November 2019, Landonline will include new functionality which allows some caveats to be automatically registered. Caveats that are based on an Agreement to Mortgage or Agreement for Sale and Purchase, provided they meet other business rules, will no longer step down to Lodge and will instead be registered automatically.

The Prepare Caveat screen requires changes to allow the auto registration of these types of caveats following release. There will be new fields to complete to ensure the interest claimed is sufficiently clear if the interest is based on one of these Agreements.

New Prepare Caveat screen

The Prepare Caveat screen will change in the release to allow a customer to select an “Agreement to Mortgage” or “Agreement for sale and purchase” agreement type. If this  is selected, and there is no third party involved, the interest claimed field will auto-populate. Any required changes can be made by ticking the ‘edit?’ checkbox.

More information about preparing a caveat using this screen

When viewing the Prepare Dealing screen, it will show that the caveat is an Autoreg instrument. This functionality is not currently available. The caveat will instead step down to Lodge. When prevalidating your caveat instrument, you will be advised that your caveat has failed a 10 year check and has stepped down. LINZ will still process your caveat dealing in the same way it did prior to the release.

Caveats that were in progress on 25 November 2019

Extra care should be taken with caveats which were in progress at the time of the release on 25 November 2019. This effects caveats which are:

  • prepared in draft and have not been submitted in Landonline before 7pm Friday 22 November 2019
  • prepared and have been signed and certified but not submitted in Landonline before 7pm Friday 22 November 2019
  • submitted prior to 7pm Friday 22 November 2019 but which are requisitioned, rejected or withdrawn after the release on 25 November 2019 is implemented.

It does not affect caveats which are submitted prior to the release and are accepted for registration by LINZ following the release.

Caveats prepared in draft and have not been submitted before the release

Due to the way information is held in Landonline currently and how it will be held following the release, caveats which have been prepared but were not signed and certified before the release will need to be re-created.

There are new fields that need to be completed. The caveator field will also be blank and will need to be completed again. This includes:

  • Agreement type
  • Agreement date (if applicable)
  • Is a 3rd Party involved? (if applicable)
  • Caveator
  • Interest Claimed

If an auto-registerable agreement type is selected, the interest claimed field will auto-populate. Any required changes can be made by ticking the ‘edit?’ checkbox.

A screenshot of the new Prepare Caveat screen you will see after 25 November, with the 'Create Agreement', 'Is a 3rd party involved' and 'Edit' fields highlighted

Caveat fully prepared prior to the release

Provided the caveat does not need to be edited before submitting it, no additional action is required. All the information that was entered at the time of signing will be retained as long as the instrument is not edited.

If the Prepare Caveat screen were to be opened, the caveator field is now showing as blank. Landonline continues to hold this information and this is not an issue requiring any action as long as the instrument preview displays as expected.

Caveat returned as requisitioned, rejected or withdrawn

Caveats which are returned to a user’s workspace from Monday 25 November may require additional action by them.

If no changes are required to the caveat before re-submitting (i.e. the dealing has been returned because of changes needed to another instrument in the dealing), no additional action is required. All the information that was entered at the time of signing will be retained. If the Prepare Caveat screen were opened, the caveator field is now blank. In this scenario this is not an issue and does not require any action as long as the instrument preview displays as expected.

If the caveat must be amended in order to re-submit it (i.e. there are requisition or rejection issues to be addressed), when the certifications are cleared, the caveat will need to be completed in the new form. This means that the new fields need to be completed. The caveator field will also be blank and will need to be completed again. This includes:

  • Agreement type
  • Agreement date (if applicable)
  • Is a 3rd Party involved? (if applicable)
  • Caveator
  • Interest Claimed

If an auto-registerable agreement type is selected, the interest claimed field will auto-populate. Any required changes can be made by ticking the ‘edit?’ checkbox.

Note: A caveat that has been requisitioned after release will always return to LINZ as a Lodge dealing upon submission even if the agreement type is now auto-registerable.

A rejected caveat when re-prepared may auto-register upon re-submission if it meets the criteria for auto-registration.

Last Updated: 19 November 2019