Impact on the land transfer system
Issue: Possible delays in the land transfer system
(Auckland District Law Society)
The changes will disrupt the land transfer system. More time should have been given to consult with stakeholders.
If delays occur and a bank account is not available, a tax file number cannot be issued in a chain of settlements involving a whole series of consequential transactions for third parties could be delayed or ultimately cancelled due to defaults in not settling.
It will be important that potential buyers and sellers are made aware of the need to apply for bank accounts (if they are an offshore person) and IRD numbers early enough in the transaction process.
Officials are working on communications to ensure that this information is made public as soon as possible, and in particular with real estate agents.
That the submission be noted.