Simon Power

Wellington, July 20 NZPA - The Land Transfer Act should be updated with legislation fit for the electronic era, the Law Commission says.

The commission today released its report, A New Land Transfer Act, which recommends replacing the Act with an updated version to simplify and consolidate the legislation.

"Buying and selling, mortgaging and leasing land affects most people in New Zealand," Commissioner John Burrows QC said.

"But we do not have modern legislation to support such dealings with land."

The Act needed to be accessible and written in plain, modern English, he said.

Included in the commission's recommendations was that there should be:

* A duty for lenders to take reasonable steps to check the identity of would-be borrowers; and

* a power for a court, in cases of clear injustice, to order correction of the register where a registered owner has lost their home through fraud.

Justice Minister Simon Power said the Act was nearly 60 years old, with provisions dating back to 1885 and complex amendments.

"It's vital that the system provides security of ownership for people, while ensuring they can efficiently and safely transfer their property to others," he said.

Mr Power and Land Information Minister Maurice Williamson were considering the recommendations and expected to report to Cabinet within four months.