You buy something and then sell it. The money from the sale is used in a certain order. First, it pays for the costs of selling. Then it pays what you owe to the lender. After that, it pays other lenders in the order they were paid. Lastly, any leftover money goes to you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM197142.

This page was last updated on 12 December 2025 — View changes

Topics:

Money and consumer rights > Consumer protectionHousing and property > Buying and selling homes

83: No contracting out, or

"Your rights are protected, no matter what your agreement says"

85: Transfer by mortgagee, or

"When a lender sells something, you get to own it without their debt."

Part 9Mortgages

84Application of purchase money

The purchase money from the sale by the mortgagee of any management rights or spectrum licence shall be applied as follows:
first, in payment of the expenses occasioned by the sale:
secondly, in payment of the money then due or owing to the mortgagee:
thirdly, in payment of subsequent registered mortgages (if any) in the order of their priority:
fourthly, the surplus (if any) shall be paid to the mortgagor.

Notes

Section 84: amended, on 12 October 2001, by section 54 of the Radiocommunications Amendment Act 2000 (2000 No 8).