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Credit Contracts and Consumer Finance Act 2003

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

74: Buy-back transactions involving buy-back promoter

You could also call this:

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

Illustration for Credit Contracts and Consumer Finance Act 2003

You are involved in a buy-back transaction of land. This means someone is buying back land from you. A buy-back promoter is someone who introduces the buyer and you to each other. If the buyer does not usually lend money or buy back land, then the buy-back promoter has to follow some rules. The promoter must do what the law says the buyer should do, as stated in sections 72 and 73. When the law talks about the buyer, it means the buy-back promoter. The buy-back promoter must make sure you get advice from a lawyer before you agree to anything. This lawyer must not know the buy-back promoter or have any interest in the deal. This kind of advice is called independent legal advice, which means the lawyer is only working for 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=DLM213146.

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Topics:
Housing and property > Buying and selling homesHousing and property > Land useMoney and consumer rights > Consumer protection
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73: Independent legal advice must be given to occupier, or

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

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75: Land cannot be dealt with without leave of court if initial disclosure not made or no independent legal advice given, or

"You need a court's permission to deal with land if rules were broken when buying it back."

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

74Buy-back transactions involving buy-back promoter

  1. This section applies if—

  2. a buy-back promoter introduced the transferee and the occupier to each other; and
    1. none of the following applies:
      1. the transferee carries on the business of providing credit (whether or not the business is the transferee's only business or the transferee's principal business):
        1. the transferee carries on the business of entering into buy-back transactions (whether or not the business is the transferee's only business or the transferee's principal business):
          1. the transferee makes a practice of providing credit in the course of a business carried on by the transferee:
            1. the transferee makes a practice of entering into buy-back transactions in the course of a business carried on by the transferee.

            2. If this section applies,—

            3. the obligations of the transferee under sections 72 and 73 are to be treated as being imposed on the buy-back promoter (instead of on the transferee); and
              1. the references in sections 72 and 73 to the transferee are to be read as references to the buy-back promoter.

                1. The buy-back promoter must ensure that every transferee under the buy-back 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.

                2. 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 buy-back promoter.