Plain language law

New Zealand law explained for everyone

Credit Contracts and Consumer Finance Act 2003

Preliminary provisions

8: Meaning of buy-back transaction

You could also call this:

"What is a buy-back transaction for your home?"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you enter a buy-back transaction, it means you are transferring your home to someone else. You still have the right to live in the home after the transfer. You may also have the right to buy the home back. You can buy the home back if you have an agreement with the person you transferred the home to. This agreement can be written or verbal. You can also buy the home back if someone else, like a buy-back promoter, has an agreement with you. The money used in the transaction is called relevant finance. This money is used for personal or household purposes. You can use the money to pay for things like a new home or to pay off debts. If you have several contracts or arrangements that are like a buy-back transaction, they are treated as one transaction. This transaction is considered a buy-back transaction under the Credit Contracts and Consumer Finance Act 2003. You can find more information about the Act and its amendments on the New Zealand legislation website https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6108967

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212736.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionHousing and property > Buying and selling homes
Previous

7: Meaning of credit contract, or

"What is a credit contract?"

Next

8A: Meanings of associated and associated person, or

"What it means to be associated with someone in business or family"

Part 1Preliminary provisions

8Meaning of buy-back transaction

  1. In this Act, unless the context otherwise requires, buy-back transaction means a transaction under which—

  2. a person (the occupier) transfers, or agrees to transfer, an estate in land to another person (the transferee); and
    1. the land is the principal place of residence of the occupier at the time that the occupier enters into the transaction; and
      1. the occupier, or a person designated by the occupier, has, after the transfer, a right to occupy the whole or any part of the land; and
        1. 1 or more of the following applies:
          1. the occupier, or a person designated by the occupier, has a right to repurchase the estate in the land in whole or in part:
            1. there is an understanding between the occupier and the transferee that the occupier, or a person designated by the occupier, has a right to repurchase the estate in the land in whole or in part:
              1. there is an understanding between the occupier and any buy-back promoter that the occupier, or a person designated by the occupier, has a right to repurchase the estate in the land in whole or in part; and
              2. the occupier is a natural person; and
                1. the relevant finance is to be used, or is intended to be used, wholly or predominantly for personal, domestic, investment, or household purposes.

                  1. For the purposes of subsection (1)(f), the predominant purpose for which the relevant finance is to be used is—

                  2. the purpose for which more than 50% of the relevant finance is intended to be used; or
                    1. if the relevant finance is intended to be used to obtain goods or services for use for different purposes, the purpose for which the goods or services are intended to be most used.

                      1. The reference to intention in subsections (1)(f) and (1A) is a reference to the occupier's intention.

                      2. In this section, relevant finance means—

                      3. the money provided to the occupier or to another person to the order of the occupier in connection with the transaction; or
                        1. the amount of a payment, discharge, or consolidation of a pre-existing monetary obligation of the occupier in connection with the transaction.

                          1. If, by virtue of any contract or contracts (none of which by itself constitutes a buy-back transaction) or any arrangement, there is a transaction that is in substance or effect a buy-back transaction, the contract, contracts, or arrangement must, for the purposes of this Act, be treated as a buy-back transaction made at the time when the contract, or the last of those contracts, or the arrangement, was made, as the case may be.

                          Notes
                          • Section 8(1)(e): replaced, on , by section 7(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 8(1)(f): inserted, on , by section 7(1) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 8(1A): inserted, on , by section 7(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 8(1B): inserted, on , by section 7(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).
                          • Section 8(1C): inserted, on , by section 7(2) of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).