Commerce Commission warning on rent-to-buy housing

After a complaint from Waikato where a buyer wasn’t given all the required information about the contract, the Commerce Commission today said house purchasers should get independent advice before they signed up to a rent-to-buy contract.

"The rent-to-buy schemes are not illegal," said Commerce Commission acting general manager, Peter Taylor.

"However, in many instances they have features which meet the definition of a consumer credit contract and the commission recommends that purchasers get independent legal advice to ensure their position is protected," he said.

"We have also written to a number of rent-to-buy scheme providers throughout the country reminding them of their obligations to consumers under the terms of the CCCF Act."

Read More - Opens in a new window