Registered interest on Title

[Kim 4 regent]

How are you being described on the title?

Joint tenants:Each person has an equal individed interest in the property and upon the death of either person, the survivor becomes the owner of the deceased person's interest upon registration of a Transmission with Land Information NZ

Tenants in common:On the death of one Tenant in commion, that person's interest in the property passes as directed by the Will of the deceased or the rules of intestacy if there is no will.

You can be registered as equal shares ie half each or as unequal shares ie a third or two thirds which may reflect the amount of monies each party has contributed to the purchase

[Keithw]

What happens in the case of a Company ?
Can Directors be listed by Share ?


Which brings up another point
Is a S& P valid if signed by only one director if there are more than one director in the company ?

[Kim 4 regent]

Hi Keith if the property is being purchase by a company then the company would be registered on the title, a S & P agreement must be signed by each director of the company unless there is a power of attorney in place for one of the directors being absent.

[Keithw]

does a power of attorney get registered anywhere or could it easily be made up later & back dated ?

[Kim 4 regent]

Hi Keith no the power of attorney does not get registered anywhere, one can be easily made up but I would not recommend it being back dated it should be dated when it is actually signed.

[Rosco]

Hi Kim,

Do all directors need to sign if the transaction is not a major transaction?

Say a company owns $10 billion worth of property and no debt.

It then buys a section for $100,000, do all the directors need to sign this sale and purchase agreement?

Ross

[John van Rensburg]

You are right to be suspicous Ross. Not all directors have to sign transactions like this. Do you seriously think Dr Roderick Deane signed to buy tiny bits of land in Ekatahuna, Kumeu, Coatesville, Ostend, Stratford, Twizel, Coromandel township etc for Telecom outlet store they purchase. Directors under the Companies Act only need to sign if it is a major transaction as defined under this Act.

[Xav]

All of the directors needing to sign is simply the default position under the Companies Act. This can be altered in the company's constitution. A power of attorney would also work and is commonly used by large companies, such as the banks (which typically have tiers of attorneys with different authority in terms of what they can sign).

The requirement depends on the type of document.

Keithw, you don't need to worry. The agreement for sale and purchase does not need to be signed by both directors. It needs to be signed by "a person acting under the company's express or implied authority", which a director certainly would be.

Mortgages and transfers are different as they must be done by deed. The amount involved is irrelevant (although is relevant in terms of resolutions). John van Rensburg, the directors of large companies typically don't sign because the company has systems in place (as explained above) so that the directors are not burdened. If they did not have any systems then they would need to.

Powers of Attorney did previously need to be registered with LINZ, although this is no longer the case with the new eDealing system. A copy of the attorney just has to be retained by the solicitor certifying.