Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Unfair conduct - False representations

14: False representations and other misleading conduct in relation to land

You could also call this:

“Telling lies or tricking people when buying or selling land is not allowed”

You need to be careful when selling or buying land. It’s against the law to tell lies or trick people about land deals. This includes saying untrue things about who approves or supports the sale.

You can’t lie about what the land is like, how much it costs, where it is, or what you can do with it. You also can’t make up stuff about what’s nearby or what services are available.

It’s not okay to use force, bullying, or pressure to make someone buy land or pay for it.

When we talk about “interest in land”, we mean owning it or having rights to use it. This can include the right to live in a building on the land, even if you only own shares in the company that owns the land. It can also mean having other rights or powers related to the land.

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 It might be out of date or be missing some parts.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=DLM96911.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
Housing and property > Buying and selling homes
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13: False or misleading representations, or

“No lying or tricking when buying or selling things”

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14A: When vendor bids are misrepresentations, or

“Sellers can't trick buyers by pretending to bid on their own items at auctions”

Part 1 Unfair conduct
False representations

14False representations and other misleading conduct in relation to land

  1. No person shall, in trade, in connection with the sale or grant or possible sale or grant of an interest in land or with the promotion by any means of the sale or grant of an interest in land,—

  2. make a false or misleading representation that a person has any sponsorship, approval, endorsement, or affiliation; or
    1. make a false or misleading representation concerning the nature of the interest in the land, the price payable for the land, the location of the land, the characteristics of the land, the use to which the land is capable of being put or may lawfully be put, or the existence or availability of facilities associated with the land.

      1. No person shall use physical force, harassment, or coercion in connection with the sale or grant or possible sale or grant of an interest in land, or the payment for an interest in land.

      2. In this section interest, in relation to land, means a legal or equitable estate or interest in the land; and includes—

      3. a right of occupancy of the land, or of a building or part of a building erected on the land, arising by virtue of the holding of shares, or by virtue of a contract to purchase shares, in a company that owns the land or building; or
        1. a right, power, or privilege, over, or in connection with, the land.

          Notes
          • Section 14(1)(a): amended, on , by section 3 of the Fair Trading Amendment Act 2003 (2003 No 31).