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Seller Financing Contract for New Zealand

Seller Financing Contract Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that facilitates property purchase through seller-provided financing. This document outlines the terms under which the seller extends credit to the buyer for property purchase, including payment schedules, interest rates, security arrangements, and default provisions. It incorporates requirements from New Zealand's Credit Contracts and Consumer Finance Act 2003, Property Law Act 2007, and other relevant legislation, providing a structured framework for alternative property financing while protecting both parties' interests.

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What is a Seller Financing Contract?

The Seller Financing Contract is utilized when traditional bank financing is either unavailable or not preferred by the parties involved. This document is particularly relevant in New Zealand's property market where alternative financing arrangements may be beneficial for both buyers and sellers. The contract combines elements of a property sale agreement with a loan agreement, ensuring compliance with New Zealand's financial and property regulations. It details the property transfer, financing terms, security arrangements, and ongoing obligations of both parties. The document is structured to protect both the seller's financial interest and the buyer's property rights, incorporating necessary provisions from relevant New Zealand legislation including the Credit Contracts and Consumer Finance Act 2003 and the Property Law Act 2007.

What sections should be included in a Seller Financing Contract?

1. Parties: Identification of the Seller/Financier and the Buyer/Borrower with full legal names and addresses

2. Background: Context of the transaction, including property details and parties' intention to enter into a seller financing arrangement

3. Definitions: Key terms used throughout the agreement including Property, Settlement Date, Security Interest, etc.

4. Purchase Price and Financing Terms: Total purchase price, down payment, financed amount, interest rate, and term of financing

5. Payment Terms: Payment schedule, method of payment, and payment calculations

6. Security Interest: Details of the security interest in the property, including mortgage terms

7. Property Transfer: Conditions and process for transferring property title

8. Buyer's Covenants: Buyer's obligations including property maintenance, insurance, rates payment, etc.

9. Seller's Representations: Seller's warranties regarding property title, condition, and authority to sell

10. Default and Remedies: Events of default and consequent remedies available to parties

11. General Provisions: Standard contract clauses including notices, amendments, governing law, etc.

What sections are optional to include in a Seller Financing Contract?

1. Early Repayment Provisions: Terms for early repayment including any penalties or benefits - include when early repayment is specifically negotiated

2. Property Management: Specific requirements for property maintenance and improvements - include for commercial properties or when significant maintenance is required

3. Insurance Requirements: Detailed insurance obligations beyond standard requirements - include for high-value or unique properties

4. Third Party Rights: Rights of other parties such as existing tenants - include when property has current occupants

5. Tax Provisions: Specific tax arrangements and obligations - include when complex tax implications exist

6. Dispute Resolution: Detailed dispute resolution procedures - include when parties want specific resolution mechanisms

What schedules should be included in a Seller Financing Contract?

1. Schedule 1: Property Details: Detailed description of the property including title details, boundaries, and improvements

2. Schedule 2: Payment Schedule: Detailed amortization schedule showing payment dates, amounts, and interest calculations

3. Schedule 3: Insurance Requirements: Specific insurance requirements including types, coverage amounts, and named insureds

4. Schedule 4: Property Condition Report: Detailed report on property condition at time of agreement

5. Appendix A: Property Title Documents: Copies of relevant title documents and encumbrances

6. Appendix B: Property Plans: Property plans, surveys, and relevant drawings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Real Estate

Financial Services

Property Development

Construction

Legal Services

Property Management

Insurance

Residential Property

Commercial Property

Agricultural Property

Relevant Teams

Legal

Real Estate

Finance

Risk Management

Compliance

Property Management

Commercial Operations

Business Development

Contract Administration

Relevant Roles

Property Lawyer

Real Estate Agent

Property Manager

Financial Advisor

Mortgage Broker

Property Developer

Legal Counsel

Conveyancing Lawyer

Contract Manager

Risk Manager

Commercial Director

Finance Manager

Property Investment Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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