Section 175 — Land Transfer Act 1952: Recovery of compensation paid and costs in case of fraud

175 Recovery of compensation paid and costs in case of fraud (1) Where any sum of money has been lawfully paid out of the Crown Bank Account as compensation for any loss occasioned— (a) By fraud, or by fraudulent omission, misdescription, or misrepresentation of any kind on the part of any proprietor in bringing land under any of the Land Transfer Acts; or (b) By fraud on the part of any person causing or procuring himself to be registered as a proprietor under any of the Land Transfer Acts by virtue of any dealing with or transmission from a registered proprietor— the amount of that compensation, together with all costs incurred in testing or defending any claim or action in relation thereto, shall be deemed a debt due to the Crown from the person legally responsible for that fraud, fraudulent omission, misdescription, or misrepresentation, as the case may be, and may be recovered from him, or from his personal representatives, by action at law, in the name of the Registrar-General, or, in case of bankruptcy, may be proved as a debt due from his estate. (1A) Without limiting subsection (1) of this section, where any sum of money has been lawfully paid out of the Public Account as compensation for any loss or damage sustained in any case to which section 172A of this Act applies and that loss or damage was caused wholly or partly by the negligence of the purchaser's practitioner, the amount of that compensation (together with all costs incurred in testing or defending any claim or action in relation to that compensation), to the extent that it may properly be attributed to that practitioner's negligence, shall be deemed a debt due to the Crown from that practitioner, and may be recovered from him, or from his personal representatives, by action at law, in the name of the Registrar-General, or, in case of bankruptcy, may be proved as a debt due from his estate. (1B) No practitioner shall be held for the purposes of subsection (1A) of this section to have acted negligently merely because he relied on a search copy issued under and for the purposes of section 172A of this Act without also searching any journal or other record kept by the Registrar unless, in the special circumstances of the case, a prudent and competent practitioner would have searched that journal or other record. (2) A certificate signed by the Minister of Finance, verifying the fact of any payment out of the Crown Bank Account, shall be prima facie proof that such payment was made as aforesaid. (3) All moneys recovered in any action as aforesaid shall be paid to the credit of the Crown Bank Account. Compare: 1915 No 35 s 190; 1930 No 6 s 53(3), (4); 1931 No 5 s 25(2) Subsections (1A) and (1B) were inserted, as from 1 January 1984, by section 4 Land Transfer Amendment Act (No 2) 1982 (1982 No 115). See clause 2 Land Transfer Amendment Act Commencement Order 1983 (SR 1983/284). Section 175(1A): amended, on 1 August 2008, by section 345(1)(a) of the Lawyers and Conveyancers Act 2006 (2006 No 1). Section 175(1A): amended, on 1 August 2008, by section 345(1)(b) of the Lawyers and Conveyancers Act 2006 (2006 No 1). Section 175(1B): amended, on 1 August 2008, by section 345(1)(a) of the Lawyers and Conveyancers Act 2006 (2006 No 1). Subsections (1A) and (1B) were amended, as from 1 June 2002, by section 65(1) Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 (2002 No 11), by substituting the word “ conveyancer ” for the word “ solicitor ” , wherever it occurs. Subsections (1A) was amended, as from 1 June 2002, by section 65(1) Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 (2002 No 11), by substituting the word “ conveyancer's ” for the word “ solicitor's ” . The words “ Consolidated Account ” were substituted, as from 1 July 1989, by the words “ Crown Bank Account ” pursuant to section 83(7) Public Finance Act 1989 (1989 No 44).