New Zealand Legislation: Acts

8 Meaning of buy-back transaction

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

  • (a) a person (the occupier) transfers, or agrees to transfer, an estate in land to another person (the transferee); and

  • (b) the land is the principal place of residence of the occupier at the time that the occupier enters into the transaction; and

  • (c) 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

  • (d) 1 or more of the following applies:

    • (i) the occupier, or a person designated by the occupier, has a right to repurchase the estate in the land in whole or in part:

    • (ii) 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:

    • (iii) 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

  • (e) the occupier is a natural person who enters into the transaction primarily for personal, domestic, household, or investment purposes.

  (2) 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.