New Standard for Authority and Identity Requirements in Land Transactions

Land Information New Zealand (LINZ)'s standard for lawyers and conveyancers identifying their clients and receiving authority to deal with land has been updated.

New E-Dealing standard

Authority and Identity Requirements for E-Dealing Standard 2024 – LINZ S 01308, issued 24 October 2024 now applies to electronic signing of authority and identification forms. It replaces the previous 2018 Standard.

The 2024 standard sets out the identity verification requirements that practitioners need to complete including:

1. ensuring they have proper authority from their client;
2. taking reasonable steps to ensure their client has legal capacity;
3. verifying the identity of their client;
4. retaining the evidence they have relied on.

The By Lawyers First steps commentary under Getting the matter underway in all publications has been updated to reflect the new standard.

The precedent Client details and verifying identity [BLFL-CPNZ-GEN-002], available on the matter plan in all publications, has also been updated.

Electronic signing

Part 4 of the Contract and Commercial Law Act 2017 contains the legal requirements concerning electronic signatures.

However, there are additional requirements for electronic signatures on documents related to land transactions.

Clause 6 of the Authority and Identity Requirements for E-Dealing Standard 2024 – LINZ S 01308 applies to electronic signing of authority and identification forms from 24 October 2024. It provides:

• An A&I form can be signed and witnessed using an electronic signature if the signature is compliant with ss 226 and 227 of the Contract and Commercial Law Act 2017 because it:
  • adequately identifies the signatory and the witness;
  • adequately indicates the signatory’s approval of the information to which the signature relates, and has been witnessed; and
  • is as reliable as is appropriate given the purpose for which the signature and the witness’ signature is required – as to which see s 228(1) of the Act.
• An image of a signature that is simply inserted into an A&I form or has been created by drawing a signature using a touch screen cannot be presumed to be reliable, as it is unlikely to comply with s 228(1).

The Electronic signing and witnessing guide, available in the Reference materials folder on the matter plan for all By Lawyers publications, has been updated accordingly. It includes links to the 2024 Standard, the legislation, and to additional information on LINZ’s website.