National Consumer Credit Protection Act 2009
Note:
See section 3 of the National Credit Act.
PART 1 - PRELIMINARY 10 Deciding application of Code to particular contracts for the sale of land by instalments 10(1)This section applies to an executory contract for the sale of land if:
(a) under the contract, the purchaser:
(i) is entitled to enter into possession of the land before becoming entitled to receive a conveyance or transfer of the land; and
(ii) is bound to make a payment or payments (other than a deposit or rent payment) to, or in accordance with the instructions of, the vendor without becoming entitled to receive a conveyance or transfer of the land in exchange for the payment or payments; and
(b) the amount payable to purchase the land under the contract exceeds the cash price of the land.
Note:
Cash price is defined in Part 13 in terms of goods or services.
Services is defined in Part 13 to include rights in relation to, and interests in, real property.
10(2)
For the purpose of deciding whether the contract is a credit contract and, if it is a credit contract, of applying this Code (including Part 6) to it:
(a) a debt is to be regarded as having been incurred, and credit provided, in the circumstances mentioned in subsection (1); and
(b) the debtor is the purchaser under the contract; and
(c) the credit provider is the vendor under the contract; and
(d) the charge for providing the credit is the amount by which the amount payable to purchase the land, together with any other amount payable under the contract other than outgoings for the land, exceeds the cash price of the land.
10(3)
This section does not affect the application of this Code to a contract that is, apart from this section, a credit contract.
10(4)
In this section:
deposit
, in relation to a contract, means an amount:
(a) not exceeding 10 % of the amount payable to purchase the land under the contract; and
(b) paid or payable in one or more amounts; and
(c) liable to be forfeited and retained by the vendor in the event of a breach of contract by the purchaser.
outgoings
includes rates, water charges and house and contents insurance.
rent payment
, under a contract, means a payment:
(a) made by the purchaser to the vendor in exchange for possession of the land before becoming entitled to receive a conveyance or transfer of the land; and
(b) that is not deductible from the amount payable to purchase the land.
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