Credit Contracts and Consumer Finance Act 2003

Consumer leases, credit-related insurance, and buy-back transactions of land - Buy-back transactions of land

73: Independent legal advice must be given to occupier

You could also call this:

"Get independent legal advice before signing a buy-back contract"

Illustration for Credit Contracts and Consumer Finance Act 2003

When you are involved in a buy-back transaction, you must get independent legal advice from a lawyer before signing any contracts. You need to understand what the contract means and what it implies, so the lawyer must explain it to you. The lawyer must also witness your signature and certify that they explained the contract to you. The lawyer who gives you advice must not have any connection to the person you are making the deal with. This means the lawyer must be independent and not have any interest in the transaction. The certificate from the lawyer must be in a specific format, which is decided by regulations. You must receive this independent legal advice before entering into any part of the buy-back transaction. The lawyer's role is to make sure you understand what you are signing. This is an important step to ensure you are protected in the transaction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM213144.

This page was last updated on 1 January 2026 — View changes

Topics:

Housing and property > Buying and selling homesMoney and consumer rights > Consumer protection

72: Initial disclosure of buy-back transaction, or

"What you need to know before agreeing to buy back something"

74: Buy-back transactions involving buy-back promoter, or

"Rules for when someone helps you sell land back to a buyer"

Part 3Consumer leases, credit-related insurance, and buy-back transactions of land
Buy-back transactions of land

73Independent legal advice must be given to occupier

Every transferee under a buy-back transaction must ensure that every occupier under the transaction has received independent legal advice concerning the transaction from a lawyer before entering into any contract or arrangement that forms part of the buy-back transaction.
The signature of each occupier on any contract or other document that forms part of the buy-back transaction must be witnessed by a lawyer.
The lawyer who witnesses the signature of an occupier must certify that, before that occupier signed the contract or document, the lawyer explained to the occupier the effect and implications of the contract or document.
The certificate must be in the form prescribed by regulations (if any).
For the purposes of this section, independent legal advice means legal advice provided by a lawyer who has no relationship with, or interest in, the transferee or any buy-back promoter.