ABSTRACT
This chapter explores two new developments in the Land Transfer Act 2017, each concerned with limits on indefeasibility of title. The first relates to fraud. Fraud has always been an exception to indefeasibility, but is for the first time defined. The Law Commission proposed a definition in order to clarify the scope of fraud with respect to unregistered interests, and to limit the scope of supervening fraud. The authors identify issues that arise with the new definition, and propose resolutions. The second development is a new discretionary power for the court to alter the register in cases of manifest injustice. This power makes a substantial inroad into the Torrens ideal of a state guarantee of title backed by compensation. New Zealand still has title by registration, but no longer has immediate indefeasibility. The authors propose that, given the Act’s purposes, the court should exercise its discretion sparingly. The authors also identify that the manifest injustice power may be available where fraud is evident or an in personam right exists, and explain that in such instances there may be no advantage to a claimant in arguing for manifest injustice.
