Section 41 — Land Transfer Act 1952: Instruments not effectual until entry in register

41 Instruments not effectual until entry in register (1) No instrument shall be effectual to pass any estate or interest in any land under the provisions of this Act, or to render any such land liable as security for the payment of money, but, upon the registration of any instrument under this Act or the Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 , the estate or interest specified in the instrument shall pass, or, as the case may be, the land shall become liable as security in manner and subject to the covenants, conditions, and contingencies set forth and specified in the instrument, or by this Act declared to be implied in instruments of a like nature. (2) If 2 or more instruments executed by the same proprietor, and purporting to transfer or encumber the same estate or interest in any land, are at the same time presented to the Registrar for registration and endorsement, he shall register and endorse that instrument under which the person claims property, who presents to him the grant or certificate of title of the land for that purpose. (3) Subsection (2) does not apply to any electronic instruments intended to be registered against any electronic transactions land. (4) If the instrument does not contain an operative provision that gives effect to the object of the instrument, then on registration— (a) the estate or interest specified in the instrument passes to the person identified as the party taking the estate or interest; or (b) in the case of a mortgage, the land specified becomes liable as security; or (c) in the case of a surrender, discharge, or variation of an instrument, the interest is extinguished or varied accordingly. (5) The provisions of subsection (4) are subject to— (a) the covenants, conditions, and contingencies specified or otherwise incorporated or implied in the instrument; and (b) in the case of a discharge of a mortgage, the provisions of section 111 to the extent that the discharge is for the whole or part of the principal sum, annuity, or other sum. (6) In the absence of any provision to the contrary in the instrument, a reference in the instrument to the unique identifier of a computer register must be taken to be a reference to the entire estate or interest for which the computer register was created. Compare: 1915 No 35 s 38 Subsection (1) was amended, as from 1 February 1999, by section 43(1) Land Transfer (Automation) Amendment Act 1998 (1998 No 123) by substituting the words “ under this Act or the Land Transfer (Automation) Amendment Act 1998 ” for the words “ in manner hereinbefore prescribed ” . Subsection (1) 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 words “ Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 ” for the words “ Land Transfer (Automation) Amendment Act 1998 ” . Subsections (3) to (5) were inserted, as from 1 June 2002, by section 65(1) Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 (2002 No 11). Subsection (6) was inserted, as from 17 May 2005, by section 4 Land Transfer Amendment Act 2005 (2005 No 58).